2.1.6.7 Check Writing

This topic provides information on check writing tab.

In this section, you can specify the rules that govern check writing for the fund, such as:

• Whether check writing is allowed to investors for this fund
• The limits on the amount for a check.
• The minimum period for which units must be held in the investor account for the fund, before they are redeemed by a check.
• Whether the unit holder can close the account through a redemption check
• If the fund is a retirement fund, whether check facility can be made available for the fund
• Applicable penalties on check redemption due to contravening any of the limits for check amount, minimum period, or insufficient account balance or stop payment instructions on a check.

1. Click on the Check Writing tab in General Operating Rules screen to specify the details.
   The Check Writing details are displayed in General Operating Rules screen.

   Figure 2-12 Check Writing

   
   

   
   Description of "Figure 2-12 Check Writing"

   
   

   For more information on fields in the screen, refer the below table.

   Table 2-16 General Operating Rules - Check Writing

   Field	Description
   Allow Check Writing	Mandatory You can use this field to indicate whether cheque writing facility is allowed for investors who invest in this fund. Select Yes from drop-down list to indicate that cheque writing is allowed.
   Minimum Amount for Checks	Numeric; 18 Characters; Optional - If cheque writing is allowed for the fund, then this information is mandatory. Specify the minimum amount that can be redeemed through a redemption cheque, for investors holding balances in the fund, who have opted for cheque writing facility. If the amount written on a cheque falls below this value, the cheque attracts penal charges.
   Maximum Amount for Checks	Numeric, 18 Characters; Optional - If cheque writing is allowed for the fund, then this information is mandatory. Specify the maximum amount that can be redeemed through a redemption cheque, for investors holding balances in the fund, who have opted for cheque writing facility. If the amount written on a cheque exceeds this value, the cheque attracts penal charges.
   Minimum Holding Period Violation	Mandatory You can use this field to indicate whether a violation of the holding period for balances in this fund, by a unit holder using the cheque writing facility must be validated for. Select ‘Yes’ from drop-down list to indicate validating of violation of the holding period.
   Stop Payment Request on Check	Mandatory You can use this field to indicate whether a stop payment request can be applied on a cheque issued by a unit holder availing cheque writing facility, for this fund. Select Yes from dropdown list to indicate that a stop payment can be applied.
   Minimum and Maximum Check Amount Violation	Numeric; 6 Characters; Mandatory You can use this field to indicate whether a violation of the minimum and maximum cheque amounts by a unit holder using the cheque writing facility in this fund, must be validated for. Select Yes from drop-down list to indicate validating of violation of the maximum and minimum cheque amounts.
   Minimum Holding Period (Days)	Numeric; 5 Characters; Optional - If check writing is allowed for the fund, then this information is mandatory. Specify the minimum number of days for which units must be held in the investor account before they can be redeemed through a redemption cheque.
   Account Closure	Mandatory You can use this field to indicate whether an investor can close the unit holder account through cheque redemption. SelectYes from drop-down list to indicate that account closure through cheque writing is allowed.
   Penalty Applicable	Mandatory You can use this field to indicate whether an investor can close the unit holder account through a cheque redemption. Select Yes from drop-down list to indicate that account closure through cheque writing is allowed.
   Insufficient Account Balance	Mandatory You can use this field to indicate whether insufficient balance in this fund, in the account of a unit holder using the cheque writing facility must be validated for. Select Yes from drop-down list to indicate validating of insufficient balance situations.