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ACCOUNT OPENING
All accounts should be introduced to the Bank. This helps in giving the banker protection under Section 131 of the Negotiable Instruments Act (banker was not negligent while opening the account). Helps prevent undesirable persons obtaining cheque books and then issuing cheques with insufficient balance (kiting). It also helps prevent undesirables opening accounts to launder their funds. Prevents persons opening fictitious/ benami accounts to commit fraud/suppress dubious funds. It is a safeguard against 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 introducer up to confirm that he had introduced the account opener. It should be noted that the introducers 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 on the strength of documents such as passports, election ID Cards, 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 introducer has known the person. I have known Mr/Mrs. . for .. years and . months. I confirm his/her identity and that she/he is employed as . and is residing at the address given 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 signed in the appropriate place. In this case after verifying the 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 be sent by Registered Post along with a self-addressed stamped envelope. It must NEVER be sent by ordinary post or handed to the account opener. Ideally till the receipt of confirmation from the introducer, withdrawals 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) Photographs of those operating the account. PAN Number. HINDU UNDIVIDED FAMILY Every male member, born into the family becomes a co-parcener. Requirements A declaration signed by all the major co parceners including the karta 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 karta and authorizing him to operate the account either singly or jointly with another co parcener. When a minor co parcener becomes a major, a

fresh letter must be procured from this person confirming the operating 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 of the account. The minute must state the names 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