Acceptance of Cheques Issued by Corporation Bank Before Merger with Union Bank
Concerning the acceptance of cheques issued by Corporation Bank prior to its merger with Union Bank, it is important to understand the current status of these cheques in the context of the merger and their validity.
A cheque issued by Corporation Bank before its merger with Union Bank can still be accepted by LIC, the Life Insurance Corporation of India, as long as the cheque is valid and within the clearing period. After the merger, the operations and liabilities of Corporation Bank were absorbed by Union Bank. However, cheques issued prior to the merger are still valid and can be processed through the banking system.
Validity and Clearance Periods
It is crucial to ensure that the cheque is not stale—meaning it should not exceed six months from the date of issuance. Additionally, it must meet all other standard requirements for cheque clearance. This includes being properly signed, filled out, and presented within the appropriate timeframe.
However, if there are any specific concerns or policies from LIC regarding the acceptance of such cheques, it would be best to check directly with LIC or consult their official guidelines.
IFSC and NEFT/RTGS Validity
For transactions up to March 31, 2021, cheques from Corporation Bank and IFSC for NEFT (National Electronic Funds Transfer) and RTGS (Real Time Gross Settlement) are valid. However, after March 31, 2021, the use of these cheques will be phased out. You will need to use the new cheque book provided by Union Bank of India and update the IFSC details wherever Corporation Bank details were previously submitted for NEFT/RTGS transactions, such as your salary transfer, insurance premium payments via ECS (Electronic Clearing System), mutual funds SIP (Systematic Investment Plan), and stockbroker transactions.
CTS Compliance Cheque Books
Generally, you will need to surrender any remaining cheques with Corporation Bank and get a new CTS (Cheques, Tenors, and Statements) compliance cheque book from Union Bank. This ensures that all transactions thereafter are conducted according to the latest banking regulations and standards.
However, specific requirements and guidelines may vary, so it is always advisable to consult the official documentation and policies of both Union Bank and LIC for the most up-to-date and accurate information.
Understanding these processes is essential for maintaining smooth financial transactions and ensuring compliance with banking regulations and policies.
Conclusion: The acceptance of cheques issued by Corporation Bank before its merger with Union Bank is still feasible, but it is important to adhere to the current validity periods and clear any remaining doubts by consulting official guidelines.