Question 6I8. - (a) When a bank supplies a savings depositor with special savings department cheques, does not the deposit practically become payable on demand?

(b) If so, is the bank justified in including such deposits among "deposits payable after notice" in its returns to the Government or does doing so amount to sending a misleading, if not false, return.

(c) If there is a difference between such savings deposits and ordinary current accounts, please explain it.

Answer. - (a) No. The mere furnishing of special savings department cheques for withdrawal purposes does not of itself imply that the deposits will be repaid on demand, as the rules and regulations applicable to the account, and which form the contract between the parties, would still govern.

(b) Such deposits are properly treated as deposits payable after notice.

(c) The difference between deposits in the savings bank department and deposits in ordinary current account is that with regard to the former the banks reserve under the rules and regulations of the department the right to require a specific notice - usually 15 days - of withdrawal, while current account deposits are payable on demand.