Page 52 - DMGT303_BANKING_AND_INSURANCE

Unit 3: Concept of Retail Banking

return of the deposit from the joint account, will only be possible if both parties sign a joint Notes
written instruction to the bank. It is not possible that only one of the both parties gives instruction
for payments of the joint account.
When an account is opened in the name of two or more persons, all of them must sign the
Account Opening Form and affix their photograph. The account will be operated in accordance
with the instructions contained therein. If such instructions are rescinded by any one of the joint
depositors, withdrawals will only be allowed if authorized by all of them.
In the case of joint account payable to either or survivor, if any of the depositor is dead, the
balance will be payable to the survivor(s) without any reference to the representatives or heirs
of the deceased person(s).

7. Minor Accounts

Savings Fund account in the name of a minor of the age of 10 years and above (with or without
cheque books) may be opened in his/her name on obtaining satisfactory proof of his/her age. An
account in the name of minor below the age of 10 years may only be opened under the guardianship
of his/her father or mother in case both are not alive, a guardian appointed through a will, deed
or legislative act in force for the time being. When the minor has attained majority, a fresh account
opening form should be taken from him/her. In case of accounts opened in the name of minor(s)
under guardianship, the photos of the guardian should be obtained.

8. Blind Customers’ Accounts

A blind person may be allowed to open a Savings Fund account singly or jointly with others. In
case of opening the account of a person, besides introduction, a witness is also required. Wherever
possible, number and details of one or more identification marks of the blind persons i.e. mole
or scar will be noted on the Account Opening Form and Specimen Signature Slip. A rubber
stamp indicating that the account-holder is blind needs to be affixed on the Account Opening
Form, Specimen Signature slip, ledger folio and pass book.

Withdrawals by the Illiterates

When a depositor has to make a withdrawal, he/she will personally call at the bank along with
the pass book. The right/left hand thumb impression of the depositor will be taken on the
withdrawal slip in the presence of passing official. Before making payment the passing official/
teller/computer terminal operator will ensure by reference to the photograph, pass book, the
identification mark, if any, that the withdrawal is being made by the depositor himself/herself.
The official will also ascertain the correct amount of withdrawal.
Standing Instructions: Standing instructions are accepted for payments like insurance premium,
taxes, rentals, etc. by the banks. Intimation of compliance of standing instructions is also sent to
customers immediately. Also, whenever a standing instruction is not carried out for any reason,
the account holder is informed at once. However, no charges by and large are levied by the
banks in respect of transfer entries within the accounts maintained at the same branch.

9. Current Accounts

A Current Account may be opened by individuals, singly or jointly, partnership firm, company,
association, institution, trust, society, etc.
According to the Indian Banks Associations model deposit policy, an illiterate or blind person
cannot open a current account. Minor, in their own name can also not open a current account as
per the current practice of the banks.

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