Pre-funded cheques from UCO Bank

Kolkata-based UCO Bank has launched pre-funded cheque book facility, which seeks to protect against dishonour of cheques due to insufficient balance, as well as serve as traveller’s cheques, gift cheques and demand draft without extra service charges.

Initially, the facility has been rolled out in 261 select Core Banking Solution (CBS) branches of the bank. Based on the response, it would be extended to all other branches of the bank, said V P Singh, general manager, Kolkata-1, UCO Bank.

Pre-funded cheque is backed by pre-arranged funds kept in a separate savings or current account of the customer. An account holder gets interest on the funds kept in the saving account.

Also, it will save the commission incurred on the issuance of demand drafts, travellers cheque of gift cheque. However, service charges will be levied upfront on the issuance of the cheque.

Also, the facility will only be open to those holding an account with the bank.

The cheques will be available in three pre-determined denominations, viz up to Rs 1,000. Rs 5,000 and Rs 10,000.

Also, a customer may opt to discontinue the pre-funded cheques facility and close the account.