Precautions in Writing a Pass Book

While writing the pass book, the bank should take the following precautions:

(1) The customer should be requested to present the pass book for completion periodically.

(2) All the entries in the pass book must be invariably installed by a responsible official as a proof of having verified the entries.

(3) The pass book must be returned to the customer after it is updated so that he has an opportunity of examining it.

(4) When the pass book is sent back or handed over the customer, the date should be noted in the ledger together with initials of the clerk who writes it.

(5) While sending the pass book to the customer, the banker should take steps to ensure the secrecy of its contents.

(6) In case of loss of pass book, duplicate copy should be marked with the word “Duplicate” and the fact should be recorded in the ledger also.

(7) The banker should indicate to the customer to intimate the objections, if any, from time to time.

(8) Confirmation letter should be sent to the customer regarding the balance standing to the credit of his account. A certificate may be enclosed along with the statement of account asking for an acknowledgement of the balance as correct. If the account shows a debit balance, it will operate as an acknowledgement of debt and would extend the period of limitation.