Opening and Operation of different types of Account Individual, Proprietorship, Partnership, Limited Company, Club, Society, Government & Semi – Government Organization and other type of Accounts

Introduction When we use the term ‘Bank Account’ generally we mean a Savings Bank Account or a Current Deposit Account though there are various types of banks accounts now in place in different Banks. Here we shall now discuss about the opening and operation of Savings Bank Account and Current Deposit Account. When we use the term ‘Bank Account’ generally we mean a Savings Bank Account or a Current Deposit Account though there are various types of banks accounts now in place in different Banks. Here we shall now discuss about the opening and operation of Savings Bank Account and Current Deposit Account.

Opening of Savings Bank / Current Deposit Account --- contd. Procedure for opening of Current Deposit and Savings Bank Account are almost similar. Following formalities are required to be completed before opening a Current Deposit or a Savings Bank Account. Procedure for opening of Current Deposit and Savings Bank Account are almost similar. Following formalities are required to be completed before opening a Current Deposit or a Savings Bank Account.

Opening of Savings Bank / Current Deposit Account --- contd. Application on the Prescribed Form: The person desiring to open a Savings Bank Account or a Current Deposit Account with the Bank has to make application with his full signature in the prescribed form. Presently there are two types of Account Opening Forms for opening of different type of Accounts : Personal and Impersonal The account opening form is supplied by the bank in free of Charge. Application on the Prescribed Form: The person desiring to open a Savings Bank Account or a Current Deposit Account with the Bank has to make application with his full signature in the prescribed form. Presently there are two types of Account Opening Forms for opening of different type of Accounts : Personal and Impersonal The account opening form is supplied by the bank in free of Charge.

Information are required to fill in Account Opening Form: For Personal Account Opening Form PART -1 Date of Opening of the Account. The name of the Customer. Type of the Account to be opened. Currency to be transacted. Declaration of Account operation. Customer Accounts with other Banks (if any) and its types. Introducer’s Information and signature with Date. Initial Deposit. Nominees Information. Minor’s Information ( If account holder is Minor). Declaration and signature with date.

For Personal Account Opening Form PART -2 Applicant’s other Personal Information and signature. Like---- His / Her Father’s, Mother’s Name ( If married Spouse Name) Nationality Date of Birth Gender Identity Occupation with designation National Identity Card No/Passport No/TIN No / Driving License No etc. Present Residential Address Permanent Address Business Address Contact Nos. Credit Card Information If ANY Residence status Signature of the respective Person. PART -2 Applicant’s other Personal Information and signature. Like---- His / Her Father’s, Mother’s Name ( If married Spouse Name) Nationality Date of Birth Gender Identity Occupation with designation National Identity Card No/Passport No/TIN No / Driving License No etc. Present Residential Address Permanent Address Business Address Contact Nos. Credit Card Information If ANY Residence status Signature of the respective Person.

For Personal Account Opening Form PART – 3 Transaction Profile: It consists of Two Parts, One for DEPOSIT and another for WITHDRAWAL. In both part the applicant has to declare on the following information related to his/her transaction: Month wise Number of Transaction Maximum Amount Per Transaction and Total Amount of monthly Transaction. Then, a Declaration and Signature of the Applicant(s). PART – 3 Transaction Profile: It consists of Two Parts, One for DEPOSIT and another for WITHDRAWAL. In both part the applicant has to declare on the following information related to his/her transaction: Month wise Number of Transaction Maximum Amount Per Transaction and Total Amount of monthly Transaction. Then, a Declaration and Signature of the Applicant(s).

For Impersonal Account Opening Form PART -1 Date of Opening of Account The name of the Customer Type of Organization/ Company Type of the Account to be opened. Currency to be transacted. Company/ Firm Address (Registered Address, Business/ Office Address and Factory Address) Trade License Number and Date along with its Issuing Authority Registration Authority Registration Number and Date TIN VAT Nature of Business Customer’s Account with Other Banks. Introducer’s Information and Signature with Date Initial Deposit Information about other Deposit ( If any) Source of Fund Declaration and Signature Nominee Information in a separate Nominee Form and Signature. PART -1 Date of Opening of Account The name of the Customer Type of Organization/ Company Type of the Account to be opened. Currency to be transacted. Company/ Firm Address (Registered Address, Business/ Office Address and Factory Address) Trade License Number and Date along with its Issuing Authority Registration Authority Registration Number and Date TIN VAT Nature of Business Customer’s Account with Other Banks. Introducer’s Information and Signature with Date Initial Deposit Information about other Deposit ( If any) Source of Fund Declaration and Signature Nominee Information in a separate Nominee Form and Signature.

For Impersonal Account Opening Form PART -2 Personal Information of all individual Partners / Directors, same as Part -2 of Personal Account Opening Form. PART -3 Same as Part -3 of Personal Account Opening Form. PART -3 Same as Part -3 of Personal Account Opening Form.

Types of customers generally open accounts with banks Individuals Joint Account Holders Proprietorship firms Partnership firms Private limited companies Public limited companies Multinational companies Public sector corporations Municipalities/Municipal Corporations/local Bodies etc. Club/Societies/Associations/School/Colleges/Universities etc. Minor Illiterate Person Pardanoshin Lady Executor / Administrator Trustees Wage Earners Foreigners Individuals Joint Account Holders Proprietorship firms Partnership firms Private limited companies Public limited companies Multinational companies Public sector corporations Municipalities/Municipal Corporations/local Bodies etc. Club/Societies/Associations/School/Colleges/Universities etc. Minor Illiterate Person Pardanoshin Lady Executor / Administrator Trustees Wage Earners Foreigners

Papers & Documents required to be obtained Common Documents for Individual Account Holders and for all Type of Accounts (Introducer mandatory): Photographs – 2 Copies for each account with Name & attested by Introducer on the back. Photocopy of National ID Card/Driving License/Passport from its pages 1 to 7. Nominee photograph one copy each attested by the Account Holder. TIN Certificate (if any for personal account) but mandatory for Proprietorship/ Partnership/ Limited Company that means for Impersonal Account. Specimen Signature Card. Salary Account of Individual: Employer Certificate/Job contract. Work permit (for Foreign National/NRTA)

Papers & Documents required to be obtained Club/Society/Trust/Charity/Association: Certified true copy of the Constitution/By Law/Trust Deed Resolution List of Members with their address. Proprietorship: Photo copy of Up to date Trade License Partnership: Partnership Agreement duly notarized by Notary Public or registered with RJSC & Firms. Instruction for the Account Operations must be mentioned in their Agreement Joint written Declaration Permission from competent authority (according to business criteria )

Papers & Documents required to be obtained Limited Company: Certified copy of Certificate of Incorporation duly attested by Chairman/MD Certified copy of Memorandum & Articles of Association duly attested by Chairman/MD Extract of Resolution of the Board of Directors Form XII from RJSC & Firms List of Directors with their address Photo copy of Up to date Trade License Photocopy of VAT Registration Certificate TIN Certificate Permission from competent authority (according to business criteria)

Papers & Documents required to be obtained RFCD Account: Photocopy of Valid Passport with latest arrival seal. Declaration of the customer for deposit of the FC as per prescribed form. (As per prevailing guidelines, if the Applicant brings FCys more than 5000 USD through declaration by FMJ Form, then that FCys are stipulated to be encashed / deposited within one month from the date of arrival from Abroad) FC Account: Photocopy of Valid Passport with latest arrival seal. Declaration of the customer for deposit the FC as per prescribed form. Work permit/Job Contact/ID (As per prevailing guidelines, if the Applicant brings FCys more than 5000 USD through declaration by FMJ Form, then that FCys are stipulated to be encashed / deposited within one month from the date of arrival from Abroad)

Papers & Documents required to be obtained Required papers for Student’s File: Application (Appendix 5/64) duly filled in. Original and photocopy of admission letters issued by the Educational Institution in favour of the student (such as the 1-20 in case of US institution). Original and photocopy of estimate relating to Annual Tuition Fee, Board and Lodging, Incidental Expenses etc issued by the concerned Educational Institution. Attested copies of Educational Certificates of the Applicant Valid Passport. Photograph of Student and Financer Solvency Certificate of Financer

Significance of Introduction of the Applicant Loss of Statutory Protection: The banker act as an agent when he collects the cheque /bill on behalf of the Customer. When a banker opens an account without proper introduction the banker is deprived of statutory protection available to a collecting banker under section 131 of Negotiable Instrument Act. According to the section a banker who acts as an agent ie collects cheque, Bill of Exchange etc. for a customer in good faith and without negligence will not be liable for wrongful conversion of funds on account of any defects in Customer’s title to those instrument. Thus, when a Banker opens an account without proper introduction it stands as guilty of negligence under section 131 of NI Act.

Significance of Introduction of the Applicant Risk in case of Un-discharged Insolvent: As per contract Act, an insolvent is not entitled to make any valid contract. So where the Customer is not properly introduced but overdraft or loan has been sanctioned and created, it might be found later that the customer was an un- discharged insolvent, thereby sinking the funds. Risk of issuing Vogus Cheque: When an account is opened in the name of an undesirable customer and a cheque book is issued to him, there is every risk that vogus cheque may be issued thereby deceiving the public. So a banker should refrain from the issuing cheque books to the customers who do not furnish a satisfactory reference.

Formalities to be completed by Bank Officials to Open Account To register an Account number for the Customer and to be mentioned both in Account Opening Form (AOF) and Specimen Signature Card. To verify the Signature of the Introducer appearing on AOF and back of the photograph of the Nominee. To admit the Specimen Signature (s) of the Customer by an authorized Officer of the Bank. To mention the SBS Code on the specific place of the AOF. To fill up the KYC Profile Form and asses the level of Risk. To put comments where asked for and confirm it by putting his / her authorized signature. Total formalities that done to be reviewed by the authorized officer or Manager Operation of the Branch by putting his / her signature. At this stage to be obtained approval from the HOB. Lastly Letter of thanks to be dispatched to the Customer’s Address with Acknowledgement Slip to meet the following objectives: 1.To convey greetings to the Customer for choosing the Bank for banking. 2.To verify the correctness of the Address of the Customer.

Formalities to be completed by Bank Officials to Open Account After observance of all the formalities mentioned above, the applicant is required to deposit minimum amount of money for opening the Account. This is called the Initial Deposit. As soon as the money is deposited the bank opens an account in the name of the Applicant. It should be noted that the permission of the competent authority for opening an account is a must. The Banker then supplies the following books to the Customer to operate the account. Pay In Slip Requisition for Cheque Book Requisition for Debit Card Procurement of Cheque Book and Debit Card Ensuring Supply of Cheque Book and Debit Card to the Customer.

Operation of Savings / Current Account Operating a bank account means transacting with the banker. That means, depositing further sum of money into the account and withdrawal of money from the account whenever needed. Every deposit whether in cash or cheque has to be accompanied by a pay in slip. Similarly every withdrawal or transfer of money from the account is to be made through cheque. This is the general feature of the account. It appears through statement of the account, which is used as authenticated record of the transaction of the account. It enables the customer to verify the entries that he/she made therein.

Thanks to All