Question:discus the procedure to by following by a banker whie opening an account?

Provie the performa and procedure of given banks?

ANSWER: Major types of bank accounts:
 Current Account
 Fixed Account
 Saving Account

Current Account:
an account with a bank or building society from which money may be
withdrawn without notice.

Fixed Account:
A fixed deposit (FD) is a financial instrument provided by banks or
NBFCs which provides investors a higher rate of interest than a regular
savings account, until the given maturity date. It may or may not require the creation
of a separate account. The interest rate varies between 4 and 7.25 percent.

Saving Account:
A savings account is an interest-bearing deposit account held at a bank
or another financial institution that provides a modest interest rate. ... In most cases,
banks do not provide checks with savings accounts.

Other Types Of Accounts:

 Individual account:
A pension plan, usually a defined contribution or profit-sharing plan, which
generates a separate account for each person in the plan. The benefits
generated are based on the amount within each individual account, as well as
the gains and losses.

 Single or personal account:

In banking "personal account" refers to one's account at the bank that is used for
non-business purposes. Most likely, the service at the bank consists of one of two kinds
of accounts or sometimes both: a savings account and a current account.

 Joint account:
Bank account in the name of two or more individuals (account
owners) who jointly (equally) share its concomitant rights and
liabilities. Joint holders of an account are regarded in law as
together making up the 'owner.' Any action against them
(pertaining to that account) is made against jointly and not
individually (severally).
 Minor account
A type of savings account that is setup by an adult to be used by
a minor. This type of banking account does not provide all of
the privileges that a normal account would, but does allow the
minor to make withdrawals and deposits. Some banks require
that the minor's account be linked to a primary account, so that
the adult can be held accountable for any improper uses of the
account. Normal maintenance fees are usually waived until the
minor reaches the age of 18.
 Blind person account
You need to remember that a blind person is fully competent to enter into a
contract like any other person. However, due to his physical disability, there
can be a situation where he contests subsequently that the facts were
misrepresented to him and-thereby try to avoid the contract. Therefore,
signature or thumb impression of the blind person should be attested by an
independent witness to the effect that all terms and conditions were properly
explained to the blind person in his presence. Moreover, cash deposit and
withdrawal by blind person should be handled by the officer of the
bank. Cheque book can be issued only if the blind person can sign
consistently.
 Illitrate person
Once again I will like to remind the bankers that the illiterate person is
competent to contract like any other person. However, he may contest
subsequently that his consent was obtained by misrepresentation and thereby
try to avoid the contract. Therefore, banks should get the same witnessed to
the effect that the terms and condition of the bank were explained to the
illiterate person in his own language and he signed the form after
understanding in their presence. Normally cheque book is not issued to
illiterate depositor. However cheque book can be issued for making statutory
payments post dated cheques for repayment of installments of loan. In such
cases, the cheques will be crossed account payee and thumb impression of the
illiterate depositor will be verified on such cheques at the of issue of cheque
book by competent authority of the bank.
 Married account
married women as special accounts. However, the times have changed and
opening of accounts of married women is very very common and does not
need any special mention. The present banking practice shows that married
women are no longer a special case. A married Woman, being an
 independent person, is legally competent to enter into a contract and thus
Banks can safely open account in her name after observing usual safeguards.
 Insane account
 Insolvent account
 Drunked account
 Pardanashine women
Let us first understand who is a Pardanashin lady? A pardanashin lady is one
who remain in complete seclusion and does not transact with people other than
members of her family. Though Pardanashin lady is legally competent to enter
into a contract, she may be able to able to avoid it on the pretext of undue
influence and the onus of proving of influence is on the bank. Therefore, bank
should take extra care in this regards. Signature of pardanashin lady
should be attested by her guardian if she is unmarried and by her
husband if she is married. The signature may be attested by any other
member of the family also. If she is illiterate she will not be issued cheque book
and for every payment she will have to give the discharge in the presence of an
independent witness. However, in case of literate Woman, cheque book
will be issued and payment will be made on the basis of recorded signatures.

Proprietorship firm
Partnership firm
Corporate firms
Trust accounts
Clubs and societies

Partnership Firm Bank Account Opening

A Partnership Firm is an association of persons for the purpose of
undertaking a business for profit. Partnership firms can be
registered or unregistered. Unregistered partnership firms can be
established even through an oral contract or by entering into a
 written agreement. On the other hand, a registered partnership
must be established through a Partnership Deed that is registered
with the Registrar of Firms. In this article, we look at the
process for opening Partnership Firm Bank Account in India.
Partnership Firm KYC Norms
The Reserve Bank of India sets Know Your Customer (KYC) norms
based on which documentation is collected by Banks for
opening account. The RBI KYC norms lay out the following
standards for opening Partnership Firm bank account:
 Registration certificate, if registered
 Partnership deed
 Power of Attorney granted to a partner or an employee of the
firm to transact business on its behalf;
 Any officially valid document identifying the partners and the
persons holding the Power of Attorney and their addresses;
 Telephone bill in the name of firm/partners
Documents Required for Opening Partnership Firm Bank
Account
Based on the RBI’s KYC norms, banks have introduced procedures
and documents required to open bank account for partnership
firm. The documents required are as under:
Basic Documents
 Partnership Deed
 PAN Card in the Name of the Partnership Firm
 Address Proof of the Partnership Firm
 Identity Proof of all Partners
 Partnership Registration Certificate (if Registered Partnership)
First Entity Proof (Any one of the following documents)
 Any certificate issued for registration/operations/Trade
License/business by Local/ State/ Central Government/
Government Agency/ SEBI/ IRDA/ ICAI/ ICSI/ ICWAI/ Office
of Registrar of Newspapers for India in the name of entity/firm.
Eg: Sales Tax, TIN/ VAT/ TANetc.
 APMC/ Mandi License/ Certificate
 Labour License/Certificate
 Professional Tax Registration Certificate
 Trade Mark Registration Certificate
 Liquor License/ Registration Certificate
 Drug License
 Registration Certificate issued by Excise & Customs
Department.
 License/ Certificate to Sell/ Stock/ Exhibit for Sale or Distribute
Insecticide/Pesticide
 Registration Certificate issued under Weight & Measurement
Act
 Police Department Permission/License/Certificate
 Regional Transport Office Permit/Registration Certificate
 Consent to Operate document issued by State/Central Pollution
Control Board
 Sales Tax Registration Certificate/ TIN Certificate/ VAT
Certificate/ Service Tax certificate/ TAN certificate.
 Valid Shops & Establishment Certificate/ Trade License.
Validity can be extended up to the grace period for renewal as
mentioned in such certificate.
 Certificate Issued by SEZ, STP, EHTP, DTA and EPZ in the
name of the entity mentioning the address allotted.
  Importer–Exporter Code Certificate along with PAN Card (if
PAN is quoted on the IEC Certificate).
 Gram Panchayat Certificate (should be on letterhead and not
more than 3 month old).
 Trade License in the name of entity.
 District Industries Center (DIC)/ Small Scale Industries (SSI)
Certificate – Acknowledgment Part -II issued by DIC/ SSI
containing Entrepreneur’s Memorandum Number. Duly stamped
and signed by issuing authority.
 Factory Registration Certificate in the name of entity.
 SEBI Registration Certificate in the name of the entity.
 Certificate of enlistment/license/shop allotment letter issued by
Municipal Corporation (Kolkatta, Ludhiana and others).
 Shops & Establishment Certificate issued by E-Seva Kendra’s
(Andhra Pradesh). Receipt issued only by Municipal
Corporation of Hyderabad (MCH) to be accepted along with
Shops & Establishment Certificate.
 The Shops and Establishment Certificate issued by the
Municipal Corporations in West Bengal are valid till March 31
every year.
Second Entity Proof (Any one of the following documents)
 Registration of firm with Employee Provident Fund
Organization.
 Registration of firm with Employee State Insurance
Corporation.
 Letter or Certificate (should be on letterhead and not more than
3 month old) confirming existence of business issued by
Chairman/ President/ CEO/ Head of the Nagar Panchayat/
Parishad, and not by local councillors/ corporators
 Complete Sales tax return in the name of the firm duly
acknowledged. Note: The portion of the sales tax return
showing the name of the firm should be duly acknowledged by
the accepting authority
 Last available Income/ Wealth Tax Assessment order in the
name of firm.
 Latest copy of Electricity Bill, not more than 3 months old.
 Latest copy of Telephone Bill from Telecom operator, not more
than 3 months old.
 Certificate issued by Municipal Corporation/ Local Self
Government Bodies confirming address of the firm.
 True copy of gas connection book in the name of entity along
with latest gas receipt not more than 3 months old or Gas bill in
case of pipe connection.
 Water Tax bill paid to Municipal Body/ Corporations, not more
than 6 months old along with the Tax receipt should stand in the
name of the firm.
 Property Tax bill should not be more than calender one year old
from the bill issuance date along with Tax receipts for property
tax paid to Municipal Body / Corporations. The Tax receipt
should stand in the name of the firm.
 Certificate of Verification issued under Weight & Measurement
Act–This document will not be considered if Registration
Certificate issued under the same act has being taken as 1st
entity proof document.