All India Mutual Arrangement Scheme (AIMAS)

Genesis

National Federation of State Cooperative Banks Ltd., (NAFSCOB) launched `All India Mutual Arrangement Scheme (AIMAS)’ on August 21, 1965.

Scope and Coverage

The State Cooperative Banks (SCBs), their branches; The District Central Cooperative Banks (DCCBs), their branches and Cooperative Urban Banks (CUBs) and their branches in the country are eligible to become members of AIMAS. Under AIMAS, any participant cooperative bank can issue a Demand Draft payable at any other SCB or its branches or any DCCB or its branches or any CUB or its branches, provided they are members of AIMAS. At present 1156 bank offices in 26 States are members of AIMAS.

The following banking and non-banking business is permissible under AIMAS.

a.Issuing and honouring of MICR & Non-MICR Demand drafts
b.Issuing and honouring of Mail transfers
c.Collection and payment of Bills, Cheques, Dividend Warrants etc.

Role of NAFSCOB in AIMAS

a.NAFSCOB lays down the rules and regulations regarding working of AIMAS and takes all decisions related to the functioning of AIMAS, in consultation with the `Advisory Committee on AIMAS’ constituted by NAFSCOB and member participant SCBs under AIMAS.
b.NAFSCOB provides necessary direction and guidance to the member participant banks under AIMAS.
c.NAFSCOB takes final decision regarding admission and cancellation of membership of AIMAS, in consultation with the respective SCBs.
d.NAFSCOB arranges printing and supply of MICR and Non-MICR DDs and makes them available to member participant banks on their specific indent, under intimation to the respective SCB.
e.NAFSCOB arranges to circulate the Specimen Signature of the Authorized Officers of the participant banks among all participant banks under AIMAS.
f.NAFSCOB assumes the responsibility to govern and monitor the functioning of AIMAS.


Role of State Co-operative Banks

SCBs play in important role in the functioning of AIMAS though the participant member bank offices operate AIMAS. When a DD is issued or paid by a DCCB/CUB, the SCBs will have to pass necessary entries at their level. The SCBs are also required to maintain Books/Registers with regard to DDs issued/honoured etc. The SCB shall forward the copies of circulars, Specimen Signature Sheets/CDs and other information/instructions etc., on AIMAS received from NAFSCOB to all the participant member banks under AIMAS in the respective States. The SCB shall print and supply relevant `Advice forms’ under AIMAS.

Admission Criteria

a.All SCBs and their branches are eligible to become members of AIMAS.
b.A DCCB having a minimum working capital of Rs.5 crore can become a member of AIMAS.
c.A DCCB having working capital of Rs.5 crore and up to Rs.10 crore can admit a maximum number of its 5 branches.
d.A DCCB having working capital of Rs.10 crore and above can admit a maximum number of 10 branches.
e.A CUB having working capital of Rs.5 crore can become a member of AIMAS.
f.A CUB having working capital of Rs.5 crore and up to 10 crore can admit maximum number of its 5 branches.
g.A CUB having working capital of Rs.10 crore and above can admit a maximum number of 10 branches.
h.The branch to be admitted to AIMAS should be a member/sub member of the local Clearing House.

Admission Procedure

Any SCB seeking admission to AIMAS should apply directly to NAFSCOB in the prescribed Application Form (Form No.1 as given in the Operational Manual on AIMAS), along with a certified copy of the resolution adopted by the competent authority indicating the names of the Authorized Officers to operate/sign under AIMAS, along with their specimen signatures and the `Group’ under which it would like to participate for the purpose of issuing and honouring of DDs.

DCCBs/CUBs seeking admission to AIMAS should apply to NAFSCOB through the SCB of the state concerned in the prescribed Application Form (Form No.2 as given in the Operational Manual on AIMAS), along with the resolution of the competent authority indicating the names of Authorised Officers to operate/sign under AIMAS, along with their specimen signatures and the `Group’ in which it would like to participate for the purpose of issuing and Honouring the DDs.

Groups for issuing and honouring DDs

The participant member banks can participate in any of the following `Groups’ for `Issuing’ and `Honouring’ DDs under AIMAS.
Please Click Here to download a PDF document of details of groups under AIMAS.

Autorized Signatories

Member participant SCBs under AIMS can authorize up to 10 Officers per SCB and up to 5 Officers per branch office for admission to AIMAS, as Authorised Signatories.

Member participant DCCBs and CUBs under AIMAS can authorize up to 10 officers per Head Office and up to 5 officers per branch office for admission to AIMAS, as Authorised Signatories.

Admission Fees

a.DCCBs and CUBs are required to pay non-refundable ‘Admission Fees’ of Rs.2500/- per bank office, which is inclusive of `Annual Membership Fees’ for the first year.
b.Annual Membership Fees per bank office of DCCB and CUB is Rs500/-.
c.SCBs under AIMAS are exempted from payment of `Admission Fees’ and `Annual Membership Fees’.

Other costs

a.The actual cost of DDs (MICR & Non-MICR) is recoverable from the member banks.
b.The cost towards `Specimen Signatures’ sheets/CDs, Hand book on AIMAS Cypher Code System, AIMAS Directory of Member Banks and any other stationery is recoverable from the participant SCB/DCCB/CUB.

AIMAS Operational Manual

‘Operational Manual on AIMAS’ consisting functional guidelines for the benefit of participant member banks under AIMAS has been brought out by NAFSCOB. The Manual is made available to all participant member banks at cost.

AIMAS Directory of Member Banks

NAFSCOB publishes ‘AIMAS Directory of Member Banks’, consisting of member specific code numbers, name and address of all the participant member bank offices along with Telephone Numbers, Fax and Telex Numbers, E-Mail Addresses as well as the `Issuing Bank Key Numbers’ of participant banks under AIMAS. The directory is supplied to all participant member banks at cost.

AIMAS Handbook on Cypher Code System

In addition to measures adopted to ensure safety of Demand Drafts under AIMAS, an additional security feature such as ‘Cypher Code’ has been introduced by NAFSCOB. In addition to the bank specific `Code Numbers’, NAFSCOB also issues bank office specific four digit ‘Issuing Bank Key Number’ for facilitating working out the Cypher Code. Under the Cypher Code System, certain numeric values have been allotted to features such as day, date, month as well as the range of amount for enabling the banks to workout day specific ‘Cypher Code’. NAFSCOB publishes `AIMAS Handbook on Cypher Code System’ and is supplied to all participant member banks at cost. Use of `Cypher Code’ has been made mandatory under AIMAS since January, 2005.


Progress in Membership

AIMAS is a popular scheme among SCBs, DCCBs and CUBs in the country.
Please Click Here to download a PDF document of the list of members under AIMAS as on 31.03.2007.