Procedures or Process of Opening Account in Bank

The bank offers three types of accounts for the facility of the customers. These are as follows:

1. Current Account
2. Saving Account
3. Fixed Deposit Account

What sort of things should one care to open the account, and when does the situation come to close the opened account? the special features of a banker-customer relationship impose obligations on a banker. He, therefore, has to be very careful in opening an account in the name of a customer. A banker should take the following precautions with regard to the opening of accounts.

Application on a Prescribed Form

Every bank has a prescribed form for opening different accounts The applicant is required to mention his name, occupation full address with location map, specimen signature, the name and sign of the introducer, and so on, He supplies his photograph to the bank and also undertakes to comply with the bank's rules in force from time to time for conduct of the account.

Introduction

If a banker opens an account for a customer without proper identification, he is not protected under the negotiable instruments act in case of fraud. The bank must get the true identity of the customer in order to ensure that the customer is who he professes to be. Otherwise, the banker should refuse to open an account. Introduction of a depositor also tells the banker that the prospective customer is indeed a respectable member of society and not an undesirable person.

Specimen Signature

Along with the application in a prescribed form and proper introduction, the applicant must also given his specimen signature to the banker in the prescribed form. The signature of the account holder on cheque issued by him, are compared with his specimen signature.  If the signature differs the banker refused to honor the cheque.

Tendering of Deposit of Money

It is essential that the application deposits some amount of cash at the time of opening an account. An applicant becomes a customer only after deposit of some money in cash/by transfer.

Though there is similarity in opening the above mentioned account, there are some differences in procedure of opening these accounts. The procedures to be followed to open each of these accounts in described separately.

Procedures or Process of Opening Current Account 

At first, the decision should be taken, as to how much amount is to be deposited in the account. thereafter, customers should choose an account to open in a bank. After deciding it, one should go to the bank with the necessary document and the money, if he has an acquainted official in the bank, he should consult with him. If there is no such person, one should go to a bank with a friend. If the friends are not available, he should inquire about the procedure to be followed to open an account in a bank. If there is no friend with an account in a bank, and no bank official is known, he should go directly to the bank and consult with the official, should ask for an application form from the office of the bank. The details of the form should be read carefully and try to understand it. And he should fill the form with his name, address, surname, and the amount, and the citizenship should agree to the rules and regulations as well as policy of the bank made before and after opening the account by writing and signing in the form. One needs one's identity either of the officials of that office goes the identity, it needs his symbol number and if he is an account holder, his details and the signature should be mentioned. The application form, the specimen signature forms, and the voucher for deposit cash can be obtained from the bank. the form should be filled in knowing all the things well. Simply four specimen signature forms or cards should be signed. Thus, the person desiring to open an account should submit the application form and the specimen signature form. The officials of the bank observe, examine or taste the forms to know whether all the procedures are completed or not.

In his way, if all the details submitted, are found true and correct, the bank accepts the person as its customer to deposit cash rupee. After the money is deposited, the bank completes all necessary processes and opens the account in the name of the customer, and provides the account number, in addition to the counterfoil voucher, the passbook, and checkbook to the account holder. At present age, the banks, issue bank statements printed in computer to the customer instead of a passbook. But in the absence of a computer, they provide a passbook. This bank statement is given in the passbook. But in the modern age, the use of the passbook is going to be disappeared. The trend of delivering the bank statement at home is growing up. There are some different procedures for opening the account of the natural person and the legal person. The provision, mentioned above, is equally effective to both legal and the natural person. The legal persons for instance company, corporations, and institutions have to submit more documents which are mentioned earlier. After getting the account number the customers can deposit their money and withdraw from the bank.

Procedure or Process of Opening Saving Account

Generally, the application forms for the current and saving accounts are similar. The procedures to open these two accounts are similar as well. The difference lies only in the word current and saving. The person who wants to open a savings account should have his own identity made by an account holder or any employee of the bank. After the bank grants application, the customer should fill up the voucher and deposit the money fixed by the bank in his account but there is a limitation of deposit for saving account. There is next form to be filled in to deposit the cash for saving. But all the details are the same as in the form of the current account. Attaching both the application form and the customer's signature card should be given to the official of the bank.

If the account to be opened in the name of the minor, his name, address, age should be mentioned. In addition to it, the guardian identifying the minor should mention his/her details and make the application. The account is opened in the name of the customer after completing all the procedures, and the banks' employee gives cheque book, passbook, and counterfoil voucher of the saving account to operate the saving account, the account holder should comply with the terms and conditions as well as rules of the bank. The checkbook, bank statement, and specimen signature cards are similar to the statement of the current account. the interest is given on the deposited amount in the account of the account holder as per the rule and policy of the bank.

Procedure or Process of Opening Fixed Deposit Account

There is a separate procedure to open the fixed deposit account. If a person has opened a current or saving account, he does not need the identity of another person. But if he does have a current or saving account, he needs the signature of the person who gives the identity of the person. In such a situation, either some customer of the bank or the bank official can give identity to him. The amount, period, and name, age, and nominee's address should be written clearly in the form to get the principal and interest after the death of the account holder. Also, the name, age, address, and citizenship of the applicant and other necessary things should be filled in the form.

When the concerned employee, after completely checking the application form and signature card of the applicant, should deposit the desired money on the counter through the voucher prepared by the bank for a fixed deposit account. After completing all the processes, the fixed deposit section opens the fixed deposit account in the name of the applicant. A cheque book or bank statement is not given as in saving and current account. But the bank provides the receipt as evidence to show that the fixed deposit is opened. the deposited amount, the period of time, rate of interest, and other statements are stated in the receipt. This type of receipt is called a contract or agreement. The customer has no right to withdraw money before the time fixed, by the customer can take a loan from the bank against the security of receipt. The bank cannot lessen and increase the rate of the interest fixed in the contract.