Mandate

Given to the Banker

Mandate
Mandate means a simple, unstamped,
written authority given by a customer to
the banker, authorizing his agent to
operate on his bank account.
The mandate is one instrument which
legally permits the bank mangers to
honour cheques signed by the mandatory (
agent ) or the person to whom such power
to sign is granted by the customer
Power is applicable
With draw of cash
Securities
Advances and Bill transactions
Over Draft
Bills of Exchange
Mandate will be for specific operations
and in no way implies to do something
similar .
Banker should adhere to mandate.
Deviations from the mandates will land
Banker in trouble
Mandates are taken at time of opening the
accounts or during contingencies
The mandate ceases –
Lunacy
Death
Insolvent