These terms apply to all cheques, bills, hundis, and other instruments (with or without accompanying documents or share certificates) submitted by account holders for collection, discounting, or purchase by the Bank.

1. Authorization & Appointment of Agents

• The Bank may, at its sole discretion but entirely at the customer’s risk and responsibility, appoint an agent to collect any cheques, bills, hundis, or other instruments submitted.
• Any such agent, including the drawee or any intermediary, will be deemed to act solely on behalf of the customer and not the Bank.

2. Transmission of Instruments

• Instruments may be transmitted via post, courier, or any other method—including direct dispatch to the drawee.
• All risks associated with transmission, including loss, delay, misdelivery, or damage, shall be borne solely by the customer.

3. Exchange for Non-Cash Instruments

• The Bank or its agents may, at their discretion, accept payment in the form of cheques, bank drafts, or other payment instruments in lieu of cash.
• Any such payment instruments are accepted at the customer’s risk, and the Bank is not liable for loss, delay, or dishonor.

4. Collection of Non-Standard Instruments

• If a payment instrument received in exchange for a discounted or purchased item is not collectible via normal banking channels, it may be collected through alternative means at the customer’s entire risk.
• All such agents involved in alternative collection methods, including the drawee, shall be considered agents of the customer.

5. Security for Advances

• All instruments submitted for discount or purchase, along with any associated goods or documents, will be held as continuing security for:
  • The payment of those specific instruments, and
  • Any other liabilities (present or future) of the customer to the Bank.
• The Bank is entitled to act as if it is the owner of any goods or shares related to such instruments and may sell, insure, warehouse, or otherwise deal with them at its discretion.

6. Non-Delivery Against Payment

The Bank is under no obligation to deliver any share certificates, goods, or documents related to such instruments unless payment is received in full.

7. Statement of Account

The Bank’s records of transactions, including account of sale and expense statements, shall be considered final and conclusive and binding on the customer.

8. Risk & Indemnity

The customer bears full risk for any of the following occurrences:

• Loss or damage during transmission (by post, courier, air, sea, telegram, cable, etc.)
• Errors or omissions including telegraphic/cable mistakes, misreading, or mutilation
• Damage to share certificates or goods during transit
• Alteration or mutilation of instruments or associated documents
• Loss or delay in transmission or communication of payment or collection advices

The customer hereby indemnifies the Bank and its agents against all such risks and losses.

9. Waiver of Presentment & Notice

• The customer waives:
  • Presentment for acceptance and/or payment, and
  • Notice of dishonor (for non-acceptance or non-payment).
• The customer agrees to make payment upon demand without requiring further formalities.

10. Binding Nature of Terms

• These terms will remain binding:
  • Regardless of changes in the name, constitution, or style of the account holder(s)
  • In the event of death of one or more account holders
  • Unless otherwise notified in writing by the customer and accepted by the Bank

Effective Date: 22-06-2025