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.
 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.
 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.
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.
 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).

 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.
 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.

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
 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