Account Opening

 

@ GMAIL.COM  @  GMAIL.COM 

JVIRAHYAS 

ACCOUNT OPENING All accounts should be introduced to the Bank. •

•

•

•

•

 T Thi his s he help lps s in givi giving ng th the e ba bank nker er pr prot otec ecti tion on un unde derr Sect Sectio ion n 13 131 1 of th the e Negotiab Nego tiable le Instrume Instruments nts Act (banker (banker was not negligent negligent while openi opening ng the account). Helps prevent undesirable persons obtaining obtaining cheque books and then issuing cheques with insufficient balance (kiting). It also helps prevent undesirables opening accounts to launder their funds. Prev Preven ents ts pe pers rson ons s op open enin ing g fi fict ctit itio ious us// be bena nami mi ac acco coun unts ts to comm commit it fraud/suppress fraud/suppre ss dubious funds. It is a safeguard against inadvertent inadvertent overdraft (due to a clerical mistake) Recovery could be made if person is one with integrity. Helps banker to reply to queries about the customer from other banks.

Introduction are acceptable from the following: •

•

An account holder with a satisfactory record. Where possible the introducer should come to the Bank. If that is not done, the Branch should ring the introd int roduce ucerr up to con confir firm m that that he ha had d introd introduce uced d the ac accou count nt ope opener ner.. It should be noted that the introducer’s signature is properly verified, and his name and address is stated on the account opening form. A confirmed employee of the bank.

In situations where the account holder is not known to an existing holder • •

A well known person Another bank.

In these cases the Account opening bank, prior to opening the account should write to the introducer and get a confirmation in writing. In cases of newly opened branches where there are no account holders accounts may be opened opened on the streng strength th of doc docum ument ents s su such ch as passp passport orts, s, ele electi ction on ID Car Cards, ds, Employers’ ID Cards and PAN Cards. In these cases extra care must ensure they are genuine (there are no alterations, erasures, overwriting etc.). It is important that the originals of these documents are viewed ( a copy must be maintained by the Branch). A notation to this effect must also be made on the account opening form.  The Reserve Bank requires the Account opening Bank to ask : the length of time the intr introd oduc ucer er ha has s kn know own n th the e pe pers rson on.. “ I have have known known Mr Mr/M /Mrs rs.. …………… ………………. …. for  for  …………….. years and ………. months. I confirm his/her identity and that she/he is employed as ………………. and is residing at the address given above” above” Exception   The Bank may, at its discretion open accounts on the basis of Election ID Cards, Passports, Ration Cards etc. In such cases the Branch Manager or someone deputed by him may open the account.

 

Note:  The introducer has no legal liability if the account goes bad. Account Opening •

•

•

  The introducer comes to the Bank and introduces the account opener by signing the account opening form. This is the ideal way.  The account opener submits an opening form wherein the introducer has also also si sign gned ed in th the e appr approp opri riat ate e plac place. e. In th this is ca case se afte afterr ve veri rify fyin ing g th the e signature a letter of thanks should be sent to the introducer. This will serve to verify that the introducer has actually introduced the account. This letter should shou ld be sent by Register Registered ed Post along with a self self-add -address ressed ed stam stamped ped envelope. It must NEVER be sent by ordinary post or handed to the account opener. Ideall Ide ally y til tilll the receip receiptt of confir confirma matio tion n fro from m the int introd roduce ucer, r, wit withdr hdrawa awals ls should not be permitted from the account.

DOCUMENTATION INDIVIDUAL ACCOUNTS PROPRIETORSHIPS • • • •

Account opening form Letter from the Proprietor in his personal capacity Photographs of those operating accounts PAN Number

PARTNERSHIPS • • • •

Account opening form duly filled in signed by all the partners Letters signed by all the partners in their personal capacity No minor partner or his guardian need sign any document A copy of the partnership deed signed by all the partners (preferably notarized) notarized) • •

Photographs PAN Number.of those operating the account.

HINDU UNDIVIDED FAMILY  Every male member, born into the family becomes a co-parcener co-parcener.. Requirements •

•

A declar declarati ation on signed signed by al alll the major major co parce parcener ners s inc includ luding ing the kar karta ta informing the Bank, the names, ages of all the male co parceners including minor co parceners. All the major co parceners should give a declaration declaring the name of  the and co authorizing to operate singly jointly withkarta another parcener.him When a minorthe co account parcenereither becomes a or major, a

2

 

• •

fresh letter fresh letter must be procured procured from this person confirming confirming the oper operatin ating g instructions. Photographs of those operating accounts PAN Number

LIMITED COMPANIES • •

• • •

• • •

Account Opening form duly completed and signed by authorized officials. Certified copy of the Minute of the Board of Directors’ Meeting permitting the opening opening of the acco accoun unt. t. The minute minute mus mustt sta state te the name names s of the officials who will operate the account and the manner the account will be operated. Certified copy of the certificate of incorporation. Certified copy of the Articles and Memorandum of Association. Certified copy of the certificate of commencement of business. This is not required for a private limited company. A copy of the latest audited Balance sheet. Photographs of those operating accounts PAN Number

3