DIFFERENT TYPES OF ACCOUNTS
Social Security Schemes
Who can open a Current Account
- Any person competent to contract and satisfactorily introduced to the Bank may open an account in his/her own name. He/She may not open more than one such account. Accounts may be opened in the names of two or more persons and may be made payable to:
- any one or more of them.
- any one or more of the survivors.
- either or anyone one or more of them or the survivors jointly, or survivor.
- ‘former or survivor’ or ‘either or survivor’, subject to the condition that the second (first in the case of either or survior) named account holder will be entitled to the balance lying in the account only on the death of the former (either in the case of either or survivor) account holder.
- Accounts can be opened for sole proprietorship firms, partnership firms, private limited and public limited companies, joint Hindu families, trusts, clubs, associates etc. satisfactorily introduced to the Bank and on fulfilling laid down procedures and tendering required credentials.
- Accounts can be opened by minors of 14 years and above, if able to read and write, in their sole names.
Who can not open a Current Account
Current account should not be permitted in the name of minor in general but account opened in the name of minor to be operated upon by natural guardian/guardian appointed by court may be allowed by the bank. But under no circumstances overdraft shall be allowed in such cases.
2. Blind Persons
Blind persons should not be allowed to open current account with the bank. However even if an account holder becomes blind subsequently, he shall be allowed to close the account and advised to open saving account.
How to open a Current Account
- Application to open an account must be made in Bank’s prescribed account opening form. All signatories are required to come in the bank to sign the account opening form. Required credentials depending upon the type of constitution of the prospective accountholder are to be submitted to the bank.
- Each applicant will be required to sign a declaration to the effect that he has read and accepted Current Account Rules. A copy of the rules is displayed on the notice board.
- A recent passport size photograph of every account holder, proprietor/partners/directors of the company/office branches/trustees and other officials authorized to operate upon the account, is required to be given to the bank.
- The account is to be introduced by an exsisting current/cash credit accountholder having minimum six months old satisfactorily and actively conducted KYC compiled account with the bank.
Interests on Current Account
No interest will be given on balance in current account. But bank shall pay interest on deceased account at the rate of saving bank account on the balance in the account from the date of death of accountholder (or from 1st May 1983 which ever is later) to the date of payment of balance to the legal heirs/representatives/nominees.
Issue/Revocation of stop payment of cheques in case of joint accounts
In the case of joint accounts (operated jointly or separately) any one of the joint account holder can stop the payment of a cheque drawn by other. The bank is bound to take notice of such instructions. If the instructions to stop payment of a cheque given earlier is to be revoked, it requires the signature of all account holders.
Procedure for obtaining declaration of sole proprietorship
The declaration of sole proprietorship should be obtained from the intended customer on the affadavit. He should sign the declaration form in his individual capacity and not under the seal of trade name or firm name.