Customer of a bank

1. CUSTOMER OF A BANK
TINTO ANIL

2. MEANING
• A person who has an account in the bank is considered as a customer
• Dr. H L Hart “ A customer is one who has an account with the bank or for whom a
banker habitually undertakes to act as such.”
• To become a customer following conditions to be filled
❖A person should open a bank account in his name
❖The dealing with the banker and customer should be of regular banking business

3. TYPES OF DEPOSIT ACCOUNT

4. 1. SAVINGS BANK ACCOUNT
• Generally meant for non trading customers. It is generally preferred by middle- and low-
income groups who can deposit only small sums
• Salaried class of lower and middle income group, farmers, or small traders mainly open such
accounts.
• SBI introduced minimum balance requirements in savings account from April 1
• SBI – Metro – 5000 RS, Urban – 3000, Semi urban-2000, rural 1000 rs

5. FEATURES
• Generally meant for middle and low income groups who expect to earn a reasonable rate of interest
on their deposits.
• A savings bank account can be opened with a small deposit of rs. 100. But a minimum balance of 1000
Rs is required to open an account with cheque facility.
• A number of withdrawals over a period of one year is limited to 150. Minimum amount of cheque
should be rs 5
• Rate of interest pyable by the banks on savings bank deposit is prescribed by Reserve bank. At present
the rate of interest is 3% per annum
• For people below poverty line banks encourage the opening of No Frills Accounts with no minimum
balance requirement

6. 2. RECURRING DEPOSITS
• It is introduced to create a habit o savings among lower income groups.
FEATURES
✓ Meant for people who have a regular monthly income
✓ A depositor can deposit a fixed amount every month for an agreed period. 1- 10 years.
✓ No withdrawals are allowed before the expiry of the agreed period. Therefore the rate of interest
allowed on these deposit is relatively high.
✓ Withdrawals can be done before the maturity period but depositors have to forego the interest or
sometimes they only earn a lower rate of interest.

7. 3. CURRENT ACCOUNT
• It is generally meant for commercial and industrial undertakings, public
bodies etc. which have numerous and continuous banking transactions.
Account may be operated any number of times during a working day.
FEATURES
• A banker has to keep large amount of liquid cash to meet the demand of
current account holders. No interest is allowed on current accounts.
• Account can be overdrawn by special arrangements with the bank

8. FIXED DEPOSIT ACCOUNT
• Moneys deposited by customer for a fixed period.
• Also called term deposit.
• The deposits are repayable only after the expiry of a specified period.
• Offers higher rate of interest (6- 10% per annum)
• Loan against the security of fixed deposit.

9. OPENING OF SAVING AND CURRENT ACCOUNT
1. Application on the prescribed form.
2. Introduction of the applicant
3. Obtaining a specimen signature
4. Receiving initial deposit
5. Opening the account – (Cheque book pass book is issued)
6. KYC