Type of bank customers
Individual
Joint Hindu families
Joint account customer
Partnership firm
Limited liability companies
Club and associations
Individual customer
It is an account open by one
person in his/her own and individual capacity. Such type of account are
maintain and operate upon only by the single person who has open the account
this solo and single person is the customer of the bank . There are many type
of individual like educated, illiterate,
insane, intoxicated , insolvent,
minor percent etc they have to be introduced their self by my filling the
account opening form and KYC form etc.
Joint account customer
Joint account is a bank account share between two or more
individuals. Joint account are most likely to be used by relatives couples or
business partner who have a level of trust with each others
Type of accounts open between two persons
Either or survivor
Jointly
Jointly or survivor
Former or survivor
Joint account open between more than two person
Anyone or survivor
Latter or survivor
Joint Hindu family (Hindu undivided family)
Joint Hindu family is a legal entity and is a unique for
Hindus. It has perpetual succession like a company. What is does not required
any registration. The head of jhf is the karta. Member of the family are
co-parctneners. The jhf business is managed by karta.
Partnership firm
Partnership is illegal entity. It is an association of
person. Registration of partnership is not compulsory under partnership act.
However many banks insist on registration of partnership. In any case stamped
partnership deed or partnership letter should be taken when an account is open
for a partnership. The partnership deed with contain name of partner, objective
of partnership, and other operational details, when should be taken not of by
the bank in its dealing.
Joint stock company (limited liability companies)
A company is register under companies act has legal status. A company is artificial person which has perpetual existence with limited liability and common seal. Memorandum and article of association certificate of incorporation, revolutions passed by the board to open account, name and designations of person who will operate the account with detail of restrictions place on them are the essential document required to open an account.
Club,societies and associations
The club, societies and associations etc May be register or unregistered. Account may be open only if persons reliable are in the managing committee or governing body. Copy of certificate of registration and copy of bye-law, certified copy of resolution of managing committee governing body to open the account and give detail of office bearer etc to operate the account.
What type precaution generally are taken by bank while dealing with partnership firm and companies account?
Joint stock company it is an association of individual for the purpose of profit. The members contribute capital. These common capital is divide into a shares. Is member is a shareholder. The shares are transferable. While opening such account the banker should be very careful and he should adopt the following precautions:-
1) checking of documents
A) banker must check the following documents the certificate of incorporation. When we register our company in a companies Act. It is issue by the registrar of the joint stock company.
B) certificate of business commencement:- it is a certificate issue to public company after completion of formation process. Only public companies needed.
C) memorandum of association
D)article of association
2) checking of resolution:- resolution of the company must be checked. It is must be signed by the chairman and security of the company. It must contain the following documents
A) the name of authorised person who will operate the account of the company.
B) the name of the person who will execute the document on the behalf of the company
C) all type of condition related to power about borrowing lending, mortgageing delegated by the company must be check carefully by the banker.
3) director account in the same bank:- account of the company and personal account of the director should be in a same bank. Ab banker should keep an eye that there should be no wrongful conversion of fund between the two.
4) checking of limits :- a banker must check that a company may be used the power of borrowing than the fixed limit.
5) winding up case:- if company is wound up and liquidator is appointed the banker will stop the payment till the instruction of the liquidator.
Partnership account:-
partnership is create by oral or written agreement it is the relation between person to share the profit of the business. Partnership maybe carry on buy all the member over by the single on behalf of other. If partnership deed is not clear then it is settle according to partnership Act 1932.
While opening the partnership account following equation must be taken by a banker
1) the account must be open in the name of firm.
2) partnership deed and change made in it time to time must be study carefully by the banker
3) it is necessary that all the partners should be sign on the whole that document.
4) all the instructions about the opening of the account must be signed by the all the partners.
5) the sample of signature on cards must be taken from the partner and authorised person who will operate the account.
6) in case of advancing law and execution of guarantees deed the banker will obtain the signature of all the partners.
7)The banker must observe the various provision of partnership Act in case death , entry or withdrawal of any partner.
8) the declaration and consent must be taken by the banker from all the partners and record to drawing and disbursement.
Types of deposits
Saving deposit / saving bank account
Current deposit
Fixed deposit
Recurring deposit
|
|
Saving bank account |
Current deposit account |
Fixed deposit account |
Recurring Deposit account |
|
Operate |
Who have a
defined income and looking for saving example labour, employee etc |
Big
businessman, companies and institutions, such as school, colleges, and
hospital has to make payment through their bank account |
This account
customer want to invest money for long time and want high return on low risk or
without risk.ex Employees, labour
etc. |
The account
can be open by a person individually or jointly with another. And the person
who use this account salary man, pretty traders etc |
|
Interest |
Interest is
allowed on the balance of deposit in the account. Interest rate is lower than
fixed deposit and recurring deposit |
The bank does
not pay any interest on the balance. Rather the account holder pay a certain
amount each year as operational charge. |
If money is
deposit in saving bank account, Bank allow a low rate of interest. Therefore,
money is deposited in fixed deposit account to earn an interest at higher
rate. Fixed deposit offer highest interest rate to any Deposit account. |
The rate of
interest allow on the deposits is higher than the saving bank account but
lower than the fixed deposit account. |
|
Withdrawal |
Withdrawal
can be made either by signing a withdrawal form or by issuing a cheque or by
ATM card. Normally Bank put some restrictions on the number of withdrawal
from this account |
Withdrawal
can be made any number of time or any amount. |
Withdrawal
are not allowed before the time of maturity. However, on request, the
depositor can encash the amount before its maturity. In that case Bank give
lower interest then what was agree upon. |
The total
deposit along with the interest is payable on maturity. However, the depositor
can also be allowed to close the account before its maturity and get back the
money along with the interest till that period. |
|
Deposit |
This type of
account can be opened with minimum initial deposit interest is paid in this
minimum deposit . Money can be deposit anytime in this account. |
This account
also required a certain minimum amount of deposit while opening the account
like saving bank account |
This type of
deposit account money is deposit only one time in lumsume . For the specific
period.The specific period can be one year to ten years |
While
operating the account of a person has to agree to deposit of fixed amount
once in a month for a certain period. |
Saving bank account
Current deposit account
Fixed deposit account
Recurring deposit account
Saving bank account
As the name suggests this type of account is suitable for
people who have a defined income and are looking to saving money. For example,
the people who get salary or the people who work as a labour. This type of
account can be open with a minimum initial deposit . Money can be deposited
anytime in this account.
Withdrawal can be made either by signing a withdrawal form or
by issuing a cheque or by using ATM card. Normally Bank put some restrictions
on the number of withdrawal from this account. Interest is allowed on the
balance of the deposit in the account. The rate of interest on saving bank
account varies from bank to bank. And
also charges from time to time. Minimum balance has to be maintained in the
account as prescribed by the bank.
Current deposit account:-
Big businessman, companies and institutions such as school
colleges and hospital has to be made payment through their bank account. Since
there are restrictions on the number of withdrawal from saving bank account,
that type of account is not suitable for them. They need to have an account
from which withdrawal can be made any number of time. Banks open a current
account from them. Like saving bank account, this account also required a
certain minimum amount of deposit while opening the account. On this deposit,
the bank does not pay any interest on the balances. Rather the account holder pay
a certain amount each year as operational charge. These account also have
overdraft facility.
Fixed deposit account
Some Bank customers may like to put any money from a longer
time. Such deposit offer a higher interest rate. If money is deposit in saving
bank account, banks allow a lower rate of interest. Therefore, money is
deposited in a fixed deposit account to earn interest at higher rate.
This type of deposit account allow the deposit to be made on
and amount for a special period. This period of deposit may range for 15 days
to 3 year or withdrawal is not allowed in this years. However, on request, the
depositor can and cash the amount before it maturity. In that case, banks give
lower interest then what agreed upon. The interest on fixed deposit account can
be withdrawal as certain interval of time. At the end of the period. Banks also
granted a loan on the security of fixed deposit receipts.
Recurring deposit account:-
When opening the account a person has to agree to deposit of
fixed amount once in a month for the certain period. The total deposit along
with the interest is payable on
maturity. However that depositor can also be allow to close the account before
its maturity and get back the money along with the interest till that period.
The account can be open by a person individually, or jointly
with another. The rate of interest allowed on the deposit is higher than on
saving deposit but lower than the rate of allowed on fixed deposit for same
period
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