I've unchecked the IMAP checkbox for the persistent Templates folder, but the folder is still visible when Zoho mail is configured over IMAP.
I'm using Mac Mail 5.1 (Lion). This behavior causes the Zoho mail account to appear strangely in my mail client, because the Templates folder cannot be mapped to any of Mac Mail's default folder set (Inbox, Drafts, Sent, Trash, Junk).