DEPOSIT SCHEMES
DIFFERENT TYPES OF ACCOUNTS
Saving Accounts
Deposit Accounts
Social Security Schemes
Saving Account
Introduction
Savings account as the very name suggests are intended for saving for the future. This is the most common type of account which caters to the needs of vast section of people in the society. These accounts promote saving habit of people. This account is form of demand deposit account.
Who can open a Savings 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.
- A savings bank account may be opened in the single name of a minor and may be operated upon by minor, if he/she has completed the age of 10 years and is able to read and write. Maximum balance to the credit of such account should not exceed at any time Rs. 1,00,000/-. For accounts of minors above 14 years, there is no limit to maximum balance.
- A savings bank account may be opened in the name of minor jointly with his/her natural guardian i.e. father or mother or both.
- An account can be opened in the name of club, society, provident fund and trust, provided they are duly constituted and subject to satisfaction of conditions stipulated by Reserve Bank of India/the bank from time to time.
- As per RBI directive and subject to their prior approval, accounts can be opened in the names of specified institutions/agencies, if they are registered under the Societies Registration Act or Companies exempted from using the word ‘Ltd.’ or ‘Pvt. Ltd.’ as part of their names as per the Companies Act 1956 and those working for socially desirable purposes and serving weaker sections of the society and those exempted from paying Income tax under Income Tax Act 1961.
- Further as per RBI directives, Savings bank account can also be opened in the name of Government Departments/bodies/agencies in respect of grants/subsidies released for implementation of various programmes/schemes sponsored by Central/State Government. Bank should also keep on their record a copy of the authorization issued by the respective government departments.
How to open a Savings Bank Account
- Application to open an account must be made in Bank’s prescribed account opening form. It should be made, in person, in the presence of Bank’s authorized officer and the applicant must fill in all the columns of the application form. Each applicant will be required to sign a declaration to the effect that he has read and accepted the Savings Bank Rules.
- Illiterate depositor, unable to write, must attend in person and affix his/her thump impression on the account opening form in the presence of an approved witness, who is known both to the bank and the applicant. Such illiterate depositor should lodge his/her recent photograph with the bank, duly attested by a person known to the Bank. Thus, he/she need not have his/her thumb impression attested by a witness every time he/she withdraws money from the account. It will suffice, if he/she affixes his/her thump impression in the presence of an officer of the Bank.
- At the discretion of the Bank, illiterate persons are allowed to open accounts jointly with persons who are literate or iliterate and closely related to them, to be operated upon jointly.
- Cheque book facility will be extended in the single or joint savings bank account of the illiterate depositors.
- Every account holder should submit copies of his/her recent passport size photograph at the time of opening an account.
- The account is to be introduced by an existing account holder having satisfactorily conducted account with the Bank. Whenever a deposit account is opened and introduction is taken from an existing account holder; the following condition must be fully satisfied:
- The account of the introducer should be minimum six months and
- The account of the introducer should have been satisfactorily and actively conducted.
- The account of the introducer should be KYC compliant. It means the proposed introducer has compiled with the KYC requirement in respect of the account maintained with the bank.
Any of the following documents bearing photograph of the holder is also accepted for the purpose of identification:
- Valid Passport
- PAN Card
- Driving Licence
- Voters ID Card
- Defence ID Card
- Identity Card of employees of central/State Govt. & Public Sector Undertakings
- Senior Citizen’s Card
In the event of withdrawal of introduction by the introducer, the Bank shall be entitled at its sole discretion to suspend the operation in the account immediately, without prior intimation to the depositor about it will be in order for the Bank to return/dishonor the cheques, if any, drawn on account, closing of account, without being liable for the same.
Collection of Service Charges
In case the account is closed before expiry of six months from the date of opening of the account service charges as specified by the head office shall be levied and credited to commission account.
Closure of Joint Account
In the case of joint accounts, all the joint account holders should sign the request letter for closing the account. In respect of a joint account where one of the joint account holder expires, the account can be closed by obtaining discharge for the balance amount in the account form the surviving depositors. If one of the joint surviving deposits is a minor or where the only surviving depositor is a minor, such an account can be closed by obtaining a discharge from the guardian on behalf of the minor.
