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  • Mandate

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    Kulgeet Tanya
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    Mr. A is going away for a year and has nominated Mr. B to conduct transactions on his savings account through a mandate letter to the bank. A mandate authorizes a third party to perform certain acts on behalf of the account holder for a temporary period. The mandate letter contains the signatures of Mr. B which are verified by Mr. A to authorize Mr. B to operate the account during Mr. A's absence. A mandate becomes invalid if the account holder dies, becomes insolvent or bankrupt.

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    Mr. A is going away for a year and has nominated Mr. B to conduct transactions on his savings account through a mandate letter to the bank. A mandate authorizes a third party to perform certain acts on behalf of the account holder for a temporary period. The mandate letter contains the signatures of Mr. B which are verified by Mr. A to authorize Mr. B to operate the account during Mr. A's absence. A mandate becomes invalid if the account holder dies, becomes insolvent or bankrupt.

    Copyright:

    © All Rights Reserved
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    33 views2 pages

    Mandate

    Uploaded by

    Kulgeet Tanya
    Mr. A is going away for a year and has nominated Mr. B to conduct transactions on his savings account through a mandate letter to the bank. A mandate authorizes a third party to perform certain acts on behalf of the account holder for a temporary period. The mandate letter contains the signatures of Mr. B which are verified by Mr. A to authorize Mr. B to operate the account during Mr. A's absence. A mandate becomes invalid if the account holder dies, becomes insolvent or bankrupt.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    MANDATE

    Savings A/c
    Mr. A BANK

    Going out for 1 year, so he Mr. A will write Mandate letter to bank in
    nominated Mr. B to do regarding the nomination of Mr. B to do
    transactions on his behalf. transactions on his behalf.

     A mandate is an authority given by the A/c holder in favour of a third


    person to do certain acts on his behalf.

     The customer informing the bank that he has authorized a person


    (mandatory) to operate the a/c on his behalf.

     The signatures of the mandatory (Mr. B) are obtained in the mandate


    letter & are verified by the customer (Mr. A).

     The mandate is normally issued for a short & temporary period.

     A mandate is not acceptable from institutions. Institutions can issue a


    power of attorney.

     In the case of Joint a/c holders, all customers must sign the mandate
    irrespective of the operational instructions, while in the case of a
    partnership firm, all partners should sign the mandate letter.

     A mandate ceases to be valid on death, insanity, insolvency &


    bankruptcy of the a/c holder.
     A mandate can be withdrawn anytime by the A/c holders.

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