Operating Bank Accounts

Bank Account

Bank account for the project funds shall be opened only in a nationally recognized bank or any other bank authorized by the central bank of the country. Necessary authorization to open any bank account or alter its manner of operation would need to be got in writing from the necessary authority. A separate bank account will be opened for all the project.

Authorized Signatories

• Every check/instrument will be signed by at least two signatories.
• A staff that has access to bank account and cash account is not entitled to be an authorized signatory.

Authority to Sign

The authority to sign would lie with selected executive members of society. The bank is authorized to undertake any written instructions, signed by two of the signatories, for transacting any financial business from time to time.

Closing of Bank Accounts

Any bank account not required to be operated must be closed immediately. The Finance/Accounts person has to take the matter with the Competent Authority and procure in writing the obtaining necessary resolution. When it is decided to close a bank account, the following actions should be completed:

• Transfer balance in the account (leaving the minimum amount required) to the other bank account.
• Surrender all the check leaves to the bank under a receipt.
• After receipt of the resolution, deliver it to the bank under receipt and transfer the balance to another account.
• Confirm closure of the bank account and transfer of balance to the competent.

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