The System of Recording Specimen Signature in Banking System

The system of recording Specimen signature in banking system


S J Tubrazy

The system of recording specimen of constituent’s signature must be such that no signature can be placed on record by an unauthorized person. All specimen signatures must be individually attested with full signature by the manager or accountant at the time they are recorded.

In the case of instructions from civil and military authorities regarding changes in personal operating an account which are usually conveyed to branches by means of letters in which the specimen signature of the newly persons are given the following procedure must be followed:-

  1. A letter received in connection with any change of personal operating on an account should be filed in a register with numbered pages. The register should be suitably indexed. The new signature must be authenticated by the manager or accountant in such a manner as to leave no chance for any replacement of or tampering fraudulently with the signature received in the Bank. Necessary precautions must be taken in regard to safe custody of the register as in the case of specimen signature cards.
  2.   A reference to this register should be made at the head of the account in the ledger and also the name of the officer newly authorized to operate on the account should be recorded. A blank specimen signature card bearing a reference to this register may be kept at the appropriate place in the specimen signature cabinet as a temporary measure.
  3. A fresh specimen signature card must be sent to the constituent immediately with a request to return it duly signed the newly authorized person and countersigned by his predecessor who used to operate on the account if possible.
  4. The fresh specimen signature card when received must be verified and recorded in the usual course and the specimen signature card referred to in sub-paragraph above may be removed.

Cabinets containing specimen signature cards must always be under the lock of supervising officials any reference to the cards by ledger keepers and others being made only in his presence. Where specimen signature books are used they must remain in the custody of supervising officials. All specimen signatures must be placed in the strong-room over night.

Signature on cheques in a language other than English and Urdu may be verified by the passing officials provided ha has proficiency in the language in which the cheque is drawn and signed. All signatures on cheques drawn in a language other than English and Urdu in which the passing officials does not command proficiency must be verified and initialed by the head cashier alone before they are passed for payment. Cheques for an amount over 25000/- if signed in a language other than English and Urdu should be drawn in the presence of a supervising officials of the Bank, but this rule may be waived in individual cases at the discretion of manager when circumstance appear to make insistence on this requirement undesirable.