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NDL Company Policy-Banking Operations

This two page document provides procedures for bank accounts. It states that the company maintains current accounts and term loan accounts, which are operated on a joint signatory system requiring two signatures. It provides details on opening, closing, and changing authorized signatories for bank accounts, which requires a board resolution. The document also covers inoperative accounts, bank account reconciliation timelines, and obtaining annual confirmation of authorized signatories and instructions.

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62 views3 pages

NDL Company Policy-Banking Operations

This two page document provides procedures for bank accounts. It states that the company maintains current accounts and term loan accounts, which are operated on a joint signatory system requiring two signatures. It provides details on opening, closing, and changing authorized signatories for bank accounts, which requires a board resolution. The document also covers inoperative accounts, bank account reconciliation timelines, and obtaining annual confirmation of authorized signatories and instructions.

Uploaded by

Shankar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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SUBJECT PROCEDURE PAGE

NUMBER
FINANCE
MANUAL BANK ACCOUNTS 1
B-01-01 OF
2

EFFECTIVE FROM EDITION NO.1 REPLACES EDITION NO.1


PROCEDURES
01-09-2008 01-09-2008

REFERENCE

 POLICY

 Minimum number of bank accounts are operated & controlled by HO only.

 Bank accounts are operated on joint signatory system.

 TYPES OF BANK ACCOUNTS

The Company maintains two types of bank accounts, viz., Current


Accounts and Term Loan accounts.

 Joint Signatory System

 As a policy, bank accounts are operated on “joint signatory” system. Under this
system, two signatories are required to operate the bank account.

 Signatories are categorised into :

 Group I - as given in the mandate

 Group II – as given in the mandate

 Bank Accounts

 For opening and closing of bank accounts, and for changes in authorised
signatories a formal request must be made.

 The request must follow the steps mentioned below :

 Request shall come from FC or GM or Board Members.

 Board Resolution to be passed and approved by the board of directors.


SUBJECT PROCEDURE PAGE
NUMBER
FINANCE
MANUAL BANK ACCOUNTS 2
B-01-01 OF
2
EFFECTIVE FROM EDITION NO.2 REPLACES EDITION NO.1
PROCEDURES
01-09-2008 01-09-2008

REFERENCE
 Inoperative Accounts

 Inoperative Account is defined as an account without any transaction in


preceding 12 months. Such an account must be closed as per the procedure
stated in the policy.

 The responsibility for taking appropriate action with regard to the inoperative
accounts rests with the Unit Finance Head/GM/Board of Directors.

 General

 Unit Finance Head must maintain up-to-date record of

 Bank accounts of the Unit.


 The banks having voluminous transactions must be reconciled every 5 days and
rest of the banks at the interval of every 10 days.

 Authorised signatories for each of the bank accounts.

 Standing instructions, if any, with regard to each bank account.

 As part of year-end statutory accounts closing exercise. Unit Finance Head must
obtain bank confirmation of the authorised signatories and Standing Instructions
relating to each bank account.

GENERAL MANAGER

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