Customers and account holders are explained in these slides. it include varies types of bank account holders like minor account, joint account, company account, partnership account, trust account, etc.,

1. Mr. Rathesh J
Asst. Prof,
New Horizon College,
Kasturinagar

2. Demand deposit
•Savings account
•Current account
Time deposits
•Fixed deposits
•Recurring deposits
Other types
•Demat account
•NRE account
•NRO account

3.  Selection of types of account
 Selection of bank
 Filling up application
 Introducer to open an account
 Submission of application form
 Verification of the application by
officer
 Initial deposit

4.  Minor account
 Joint account
 Joint Hindu Family
 Partnership account
 Joint Stock company account
 Trustee account
 Clubs & Associations account
 Illiterate Account
 Lunatics account
 Deceased customer account
 Account of married women
 Government dept. account
 Non-resident account

5.  As per section 4 of The Guardian & Wards Act
1890 “Minor is a person who is to be deemed
not to have attained his majority under the
provision of Indian Majority Act 1875”
 Agreement with minor is void(invalid).

6.  Types of Guardian:
◦Natural Guardian
◦Testamentary Guardian (by will)
◦Guardian appointed by court

7.  Precaution while opening bank
account (above 14 years)
 Precaution for date of birth
 Granting loans to minor
 Guarantees
 Minor as an agent
 Minor as partner

8.  Bank account shared by two or more
persons.
Precautions to be taken
 Withdrawal of amount
 Survivorship
 Authorization to withdraw safe custody
 Liability of deceased holder
 Insolvency of holder
 Death of one of the joint account holder

9. Precautions to be taken
 Account should be in the name of
Kartha or in Business name
 2 copies of photograph
 Introducer in mandatory
 Signature of member
 In case of minor guardian has to sign
 Notice to stop payment

10. Precautions to be taken
 Number of partners
 Name of bank account
 Opening of an account
 Authority to operate account
 Cancellation of authority
 Delegation of authority
 Admission of new partner
 Retirement of partner
 Incase of death of partner
 Insolvency of partner
 Lunacy of partner

11. Steps
 Banker should confirm Co. registered or not
 Should obtain MA & AA
 Inspect the objectives, vision & mission
 Should collect business commencement
certificate
 Obtain recent copy of balance sheet, P&L A/c
 Copy of resolution of appointing as banker
 Letter stating authorized person
 Specimen signature of authorized person

12.  Borrowing powers
 Examine the article
 Examine the purpose of
borrowing
 Borrowing purpose should be in
MA
 Liquidation of company
 Charge on property for loan

13.  Trustee is a person to whom property is
given for the usage of third party.
Precautions to be taken
 Obtain trust deed
 Specimen signature
 Limitation of withdrawal
 Specified purpose
 Pledging trust property
 Signing authority
 Copy of registration certificate
 Death of trustee

14.  Incorporated clubs & non-
incorporated
 Rules & laws of club
 Resolution from managing
committee
◦ Appointment of banker
◦ Appointment of operator
 Borrowings
 Special care for personal account
 Death of operator

15.  Lunatic is a person of unsound mind.
Lunatics are not a competent party for
contract
Precautions to be taken
 Should not allow to account
 Stop the operation of account
 Confirm the fact & not believe any rumours
 Return of cheque as “refers to drawer”
 Should not allow authorized person to
operate
 Allow authorized person appointed by court
 Doctors certificate should be persented

16. Will of customer
Nomination by customer
Order by the court
Legal representation