A cheque that can't be dishonoured

UCO Bank launched its new product 'Pre-Funded Cheque' a facility which would be backed-up by pre-arranged funds kept in a separate savings or current account of the customer without having any scope of dishonour of cheques."The pre-funded cheque is a blend of qualities of our various products. This will cater to diversified requirements of our customers," Uco Bank's General Manager, K V Kulkarni, told reporters here today.The new product would help the bank mobilise CASA deposits, he said.With the cheque backed up by pre-arranged funds kept separately in savings or current account of the customer, it would prevent any chance of dishonour of the cheques on account of insufficiency of funds.The customer can earn interest on funds kept in his savings bank account and also save commission normally incurred on issuance of demand draft, traveller's cheque, manager's cheque or gift cheque.The facility at present would be available at selected 261 CBS branches of the bank.The cheques are payable at par at all CBS branches of the bank.The cheques are issued in three pre-determined denominations, upto Rs 1,000, Rs 5,000 and Rs 10,000.The service charges shall be levied upfront at Rs 100 per cheque book of 10 leaves of Rs 10,000 denomination and Rs 50 per cheque book of 10 leaves for denominations of Rs 5,000 and 1,000.The customers can also opt for stop payment of such cheques.