CHAPTER 3 CURRENT ACCOUNTS 1

30/06/2013
Current Accounts
1. Current accounts are opened mainly by business community, corporate bodies or
the like where the account holder has often to receive money and to make a number of
payments. No interest is paid on balances in current accounts except in the cases
referred to in paragraph 8 and there are no restrictions as to the number of deposits
into and withdrawals from the account per day.
Introduction of Accounts
. The account shall be opened on the basis of the documents stipulated, and in their
absence, opened on the basis of introduction by an existing customer or any person,
who is in a position to satisfy the Bank by submitting his/her documents. Such
documents are Passport/PA !ard/"oter#s $dentity !ard/%ri&ing 'icence and recent
passport si(e Photograph/)mployer#s $% !ard *or satisfactory confirmation/letter from
)mployer+/'etter from a recognised public authority or public ser&ant &erifying the
identity and residence of the customer to the satisfaction of the Bank/Photo !redit
!ard. !"or detailed instructions on #Introduction#, refer to chapter on $eposits %
&eneral'.
Types of Accounts
(. Current accounts are opened for approved persons only. Current accounts may be
opened in the names of)
i' Individual % *ingle +ccounts
ii' ,wo or more individuals % -oint accounts *!an be opened with operational
instructions ,)ither or Sur&i&or- or .ormer or Sur&i&or- or ,Any /ne/All of the 0oint
Account 1olders-.+
iii' *ole proprietory concerns
iv' .artnership "irms
v' -oint /indu "amilies or "irms
vi' 0imited Companies
vii' +ssociations, Clubs, *ocieties, etc.
viii' ,rusts
ix' 1xecutors and +dministrators
x' .rovident "unds
xi' 0i2uidators
xii' 3ther 4anks
xiii' *tate "inancial Corporations
In approved cases, branches may open non%operating accounts called #Collection
+ccounts#. !"or detailed instructions for dealing with these accounts, refer to Chapter
on $eposits % &eneral.'
CHAPTER 3 CURRENT ACCOUNTS 2
Opening of Accounts
5.1 ,o fall in line with the 64I7s guidelines on 8now 9our Customer !89C' policy the
account opening form has been modified. ,he 4ranches are re2uired to obtain the
revised account opening form while opening *avings 4ank, Current +ccount, all types
of term deposits, 43I *avings .lus, 43I Current .lus, 3verdraft and Cash Credit
account. Also refer to the !urrent A/c rules as per appendix 2.
+ new form is to be obtained at the time of opening of accounts for new
customers. +nd for opening an additional account in an existing account title, only
additional account opening form is to be obtained. "or example, if + and 4 have earlier
opened a *avings 4ank $eposit +ccount where this new form has been obtained,
incase they desire to open a ,erm deposit account, the additional form need only be
obtained. ,he new account opening form should be obtained in all existing accounts
also in a phased manner.
+ separate specimen signature slip !form C$ :(*' and 4ill Indemnity 0etter !"orm 4ills
1;;<' should also be signed by all the account holders irrespective of the mode of
operations on the account. ,he nomination in the prescribed format !*pecimen
+ppendix I of chapter on #$eposits % &eneral#' should be obtained in all personal
accounts=sole proprietary accounts where such nomination is desired by the account
holders. !6efer Chapter on $eposits % &eneral'.
4.1A Online Account Opening form for Savings Bank and Current
Accounts
The Bank has created an onlne Acco!nt O"enn# $or% $or Sa&n#s Bank
Acco!nts 'Nor%al( NRE ) NRO AN* Sta$$ Acco!nts+ and C!rrent Acco!nts $or
,oth "ros"ect&e and e-stn# c!sto%ers. C!rrent Acco!nts .ll ,e onl/ $or
C!rrent 0eneral Acco!nts.
The onlne Acco!nt O"enn# $or% s a&ala,le on Bank1s 2e,ste !nder A""l/
3 Track Onlne o"ton45Acco!nt o"enn#45A""l/ Onlne
Once the c!sto%er $lls !" the A""lcaton 6or% and s!,%ts the sa%e( the
c!sto%er detals lke C!sto%er Na%e( hs)her %al d( contact n!%,er and
Re$erence n!%,er or Trackn# n!%,er are a!to%atcall/ sent to the ,ranch e4
%al d( .hch has ,een selected ,/ the c!sto%er to o"en hs)her acco!nt.
The c!sto%er then has to a""roach the ,ranch .th "rnted co"/ o$ the Acco!nt
O"enn# 6or% .th all the rele&ant 78C doc!%ents re9!red to ,e s!,%tted
$or o"enn# o$ the acco!nt( .thn 3 .orkn# da/s. The ,ranch has to o,tan the
s#nat!re o$ the c!sto%er on the Acco!nt O"enn# 6or% and co%"lete the 78C
$or%altes. :n case the c!sto%er has not "rnted the $or%( the sa%e can ,e
"rnted ,/ the ,ranch ,/ #&n# re$erence n!%,er ,/ the c!sto%er or ,/
re$errn# to the e %al rece&ed.
5. 4ranches are normally opening current accounts and allow operations therein
without making any in2uiries whether the account holder is en>oying any credit facilities
with other 4ank. It may so happen that the borrowers of one bank open current
accounts with other banks and conduct operations through such accounts instead of
routing all their transactions in the accounts maintained with the lending bank and
thereby violate credit discipline. ,his is more common where a customer is en>oying
borrowing facilities against book debts. ,o safeguard the interest of the lending bank, it
would be essential to obtain a declaration from a firm or a company which desires to
open a current account that the firm or company is not en>oying any credit facility with
any other bank. If they are en>oying any credit facilities, they must give full particulars of
such facilities with the name!s' of the banks concerned. The Bank has e&ery right to
CHAPTER 3 CURRENT ACCOUNTS 3
refer to the lending Banks concerned for Status reports/o /b3ection !ertificate before
opening such other bank borrowers# !% accounts with the Bank.
I $eclaration and undertaking as per *pecimen % +ppendix I )
"rom a firm=company not having any borrowing=banking facility with any other
bank.
II $eclaration and undertaking as per *pecimen % +ppendix II )
"rom a firm=company en>oying borrowing=banking arrangements with the 4ank
as well as with other banks.
4.2.1 RB: has once a#an nstr!cted that Bank ,ranches sho!ld not o"en c!rrent
acco!nts o$ enttes .hch en;o/ credt $acltes '$!nd ,ased or non4$!nd ,ased+
$ro% the Bankn# s/ste% .tho!t s"ec$call/ o,tann# a no4o,;ecton
cert$cate $ro% lendn# ,ank)s concerned. Non4adherence to the a,o&e
dsc"lne co!ld ,e "erce&ed as a,ettn# the s"honn# o$ $!nds and s!ch
&olaton .o!ld render the concerned Bank la,le $or "enalt/ !nder Bankn#
Re#!laton Act.1<4<.
4.2.2= Ho.e&er .here the dl#ence s carred o!t on the re9!est o$ a
"ros"ect&e c!sto%er .ho s a cor"orate or lar#e ,orro.er en;o/n# credt
$acltes $ro% %ore than one ,ranch( the ,ranches %a/ n$or% the consort!%
leader( $ !nder consort!% and the concerned ,anks $ !nder %!lt"le Bankn#
arran#e%ent.
4.2.3 2here no res"onse s rece&ed $ro% the e-stn# ,ankers .thn a
%n%!% .atn# "erod o$ a $ortn#ht c!rrent a)cs o$ the "ros"ect&e c!sto%ers
can ,e o"ened.
4.2. 4 2here a res"onse s rece&ed $ro% the e-stn# ,anker o$ the
"ros"ect&e c!sto%er( the ,ranches sho!ld assess the st!aton .th re$erence to
the n$or%aton "ro&ded on the "ros"ect&e c!sto%er ,/ the concerned Bank
and are not re9!red to solct a $or%al no o,;ecton .hch .o!ld ,e consstent
.th tr!e $reedo% to the c!sto%ers o$ Banks as .ell as needed d!e dl#ence on
the c!sto%er ,/ the Bank.
4ranches should advise these lending banks the fact of opening of the account by the
firm=company.
5.( In case of Current +ccounts opened in the name!s' of the staff=relatives of staff
members the following procedure should be adopted )
!a' $etails of all Current +ccounts in the name!s' of close relatives of staff members
operated and maintained at a 4ranch should be reported to the next Controlling
+uthority i.e. ?onal @anager. ,he format for reporting purpose is given in +ppendix AII.
!b' 4ranches which do not have any such account should submit a BNilC *tatement.
!c' ,he branches should also submit to the next Controlling +uthority the particulars of
operations in these accounts every 2uarter as per the format given in +ppendix AII.
!d' 4ranch @anager is the authority to authorise the opening of such accounts.
!e' +ccounts of staff=relatives of staff members should be segregated from other
Current +ccounts in the same ledger or maintained in a separate ledger.
CHAPTER 3 CURRENT ACCOUNTS 4
!f' +ll credit vouchers relating to all staff accounts including paying%in%slip should be
countersigned by an officer of the 4ranch.
!g' ,he current accounts of all staff members held in their names either singly or >ointly
with any other person should be checked by an officer of the branch.
!h' @anager should carry out periodical scrutiny or test check of such accounts.
4.4 A Other Accounts :4hile the operational instructions can be in any manner *say
either or sur&i&or or former or sur&i&or or any one Partner/%irector/Trustee etc,+, the
same would be jointly authenticated in the account opening form in case of
Partnership .irms and in case of 'imited !ompanies or Trusts or Societies etc would
be in accordance with the Board 5esolution or the Trust %eed or the Bye 'aws as the
case may be.
Minimum Balance
<.1 ,he minimum amount of initial deposits and maintenance of minimum balance in
current $eposit a=c !applicable to all centres' and penalty charges for not maintaining
the same are as under)
>n%!% Balance to ,e %antaned Penalt/ char#es $or not
..e.$.21.?.2@@4 %antann# %n%!% ,alance
'"er %onth+
4444444444444444444444444444444444444444444 444444444444444444444444444444444444444444
Rs.?(@@@)4 $or nd&d!als Rs.??)4 "er %onth 're&sed and
Rs.1@(@@@)4 other than nd&d!als ncl!s&e o$ ser&ce Ta- ..e.$.
1@.@<.2@@4 'S!,;ect to chan#es
$ro% t%e to t%e+
Ho.e&er n the l#ht o$ del,eraton .th the Parla%entar/ Co%%ttee on SS:(
,ranches %a/ rela- the %n%!% ,alance crtera n res"ect o$ c!rrent acco!nts
o"ened ,/ SS: !nts $or l%ted "!r"ose o$ transactn# ther ,!sness .th
0o&ern%ent *e"art%ents ) A#ences.
?.2 Branch >ana#er n deser&n# cases %a/ allo. an acco!nt to r!n .th
,alance lo.er than the "rescr,ed %n%!% ,alance s!,;ect to the
,alance ,en# ,ro!#ht !"to the "rescr,ed %n%!% le&els .thn
s"ec$ed reasona,le "erod and le&/ char#es as %entoned a,o&e. :n
case o$ ha,t!al de$a!lt n %antann# %n%!% ,alance( re&e. $or
desra,lt/ o$ contn!n# or other.se o$ s!ch acco!nt ,e %ade n
accordance .th cha"ter 3 o$ >an!al o$ :nstr!ctons Aol.4: "ara#ra"h
B.1 and B.2. Acco!nts o$ sta$$ %e%,ers ) E-4sta$$ %e%,ers are
e-e%"ted $ro% the st"!laton o$ %antann# %n%!% ,alance.
?.2 A 2hle o"enn# the acco!nt( the o$$cal concerned sho!ld e-"lan to the
"ros"ect&e c!sto%er the re9!re%ent o$ %antann# %n%!% ,alance and the
"enal char#es n case o$ non co%"lance.
Branches %!st ds"la/ on the Notce Board at cons"c!o!s "lace n the
Bankn# Hall the a,o&e detals and ens!re that t dra.s the attenton o$
c!sto%ers.
CHAPTER 3 CURRENT ACCOUNTS ?
Temporary Overdrafts
:.1 .ayment of che2ue!s' or debit voucher!s' causing a current account to be
overdrawn must be authorised by @anager who should initial on the che2ue=voucher in
token of his approval. !,he extent of authority to grant temporary overdraft is given in
the booklet containing the scheme of B$elegation of .owersC which is revised from time
to time'. *uch che2ue!s'=voucher!s' should be entered in the 6egister of ,emporary
3verdrafts !"orm C$ 8 % *pecimen) +ppendix%AIII'. ,he @anager should also initial
the entry in the 6egister. .ayment of subse2uent che2ue!s'=Aoucher!s' in an account
in which temporary overdraft has been permitted and is outstanding should be passed
for payment likewise, if the intention is to allow the account to be further overdrawn.
,he date when a temporarily overdrawn account is put in order should be recorded in
the 6egister of ,emporary 3verdrafts under appropriate column and initialled by the
@anager.
:.1!a' 6evised 6eporting .rocedure
% 6ecording of 3verdraft in 6egister of ,emporary 3verdraft !"orm C$ 8'
% @onthly reporting to controlling office%!non%reporting will be viewed seriously'
% Aisiting official should check and initial the register not amounting to confirmation.
% .robe by controlling offices where ,3$ has remained outstanding for more than D;
days and=or amount of
,3$ is in excess of 6s. < lakhs and=or number of occasion in same account is more
than < times in last ( months.
% #NI0# statement is also re2uired to be submitted.
% *tatement to be submitted showing cumulative position of ,3$s which continue to
remain outstanding in the subse2uent month in chronological order irrespective of the
authority.
:. ,he @anager should not make it a practice to accommodate any account holder by
granting temporary overdrafts as the 4ank might be involved if in one instance the
facility is not given and a che2ue is returned unpaid. ,he facility of permitting account
to be temporarily overdrawn should be given on a very restrictive=selective basis. ,he
occasions to grant temporary overdrafts should be few and far between in any account.
,he extent of temporary overdraft permitted should bear a reasonable proportion to the
average balance in the account and the means of the account holder!s'.
:.( Ehen the account is allowed to be overdrawn temporarily, 4ranches should send to
the account holder!s' an advice re2uesting him to put the account in order immediately
!"orm C$ <F' and should follow%up regularly until the account is set right.
:.5 Ehere the account holder re2uires the facility of drawing in excess of balance, it is
advisable to consider granting a regular overdraft limit for which a proper proposal
should be submitted for sanction at appropriate level.
:.< Ehere a customer, owing to the peculiar nature of his business, re2uires #che2ues
against che2ue# facility on a regular basis against che2ue!s' lodged in his account ,
4ranches should put up for sanction, at appropriate level, a suitable proposal. !*ome
account holders make it a practice to ask the 4ank to send their che2ues for special
collection. +n appropriate charge may be levied at the discretion of the @anager when
this service is rendered. 1xceptions may be made for really good account holders'.
!+lso refer to the scheme of C$elegation of .owersC.'
:.: "ollowing action should be taken in day%to%day management of clearing portfolio,
especially in regard to permitting drawals against che2ues sent in clearing )
CHAPTER 3 CURRENT ACCOUNTS C
i' ,he limits against clearing che2ues should be sanctioned only in respect of first
class customers and even in such cases, the extent of the limits and the need therefore
should be sub>ected to a thorough scrutiny and periodical review.
ii' *uch drawings should be normally confined to bank drafts, &overnment che2ues
and to a limited extent, third party che2ues.
iii' $rawings against che2ues of allied=sister concerns should not be permitted.
iv' ,he facility should normally be only of a temporary nature and should not be allowed
on a regular basis without proper scrutiny and appraisal.
v' ,he @anagers should exercise their discretionary powers in this regard very
sparingly and that too only in respect of respectable customers and should not normally
exceed the sanctioned limits= discretionary powers.
vi' ,he conduct of the accounts where facilities are allowed against uncleared effects
should be closely watched to ensure that the constituents do not misuse the facility.
:.F + separate 6egister should be maintained for regular limits against uncleared
effects, sanctioned by the 4ranch @anager. + separate 6egister should also be
maintained for casual withdrawals against uncleared effects, permitted by the 4ranch
@anager, in his discretionary authority. In this latter 6egister, a separate column should
be provided for recording full particulars of che2ue!s' deposited against which
withdrawal was permitted and whether such che2ue!s' was=were realised and date of
realisation should also be recorded. 4oth these 6egisters should be made available to
inspecting officers and to internal auditors.
:.8 ,he debit balances of temporarily overdrawn accounts should be >otted daily
!except on the balancing day' in the $aily 1xtract of 3verdraft balances !form 3$ 15<'
and checked by the concerned ledger checking officer. *tatement of ,3$ is to be sent
monthly in "orm 46 ( !+' as given in +ppendix%IG.
ervice C!arges/"nremunerative Accounts #
F.1 .roperly maintained Current +ccounts are very valuable to the 4ank, but current
accounts maintaining an average balance below the stipulated minimum of 6s. <;;;=%
for Individual!s' or 6s. 1;;;;=% for other than Individuals !refer paragraph <.1' or
accounts in which there are very heavy operations not commensurate with the balance
maintained or accounts maintaining a small average balance and taking undue
advantage of the 4ankCs free remittance facilities with no benefit to the 4ank by way of
deposits and=or other remunerative business or accounts with small average balances
in which small denomination notes and small coins are excessively tendered or in
which che2ues are returned for want of funds, cause considerable operational strain
and are therefore, unremunerative and uneconomic. +ttention of account holders who
do not maintain minimum balance of 6s. <;;;=% and 6s. 1;;;;=%, as the case may be,
should be drawn by sending a suitable letter !"orm C$ 11F'. In the case of other
accounts of the categories mentioned above, 4ranches should draw the attention of the
account holders to the necessity of opening their accounts in accordance with the rules
of business of the 4ank. If repeated re2uests do not have any effect on the customers,
4ranches should endeavour to weed out such accounts.
F. 4ranches should endeavour to build up good current account business by gradually
and systematically weeding out very poorly conducted and totally unremunerative
accounts. In dealing with such unremunerative accounts, the @anager must use his
discretion in the best interest of the 4ank and levy service charges half%yearly, where
necessary. *ervice charges have a way of irritating account holders with wide
repercussion on the 4ankCs business but the criterion should be whether the 4ranch
would on the whole be a loser if the account is closed.
CHAPTER 3 CURRENT ACCOUNTS B
F.( In view of the overall increase in the cost components in servicing the current
account business and with a view to bringing uniformity in the method for calculation of
service charges to be levied every half%year, a schedule of service charges is fixed by
/ead 3ffice and circulated to 4ranches from time to time. ,he charges are fixed on the
following criteria
i' to have uniformity in the scale of charges levied at 4ranchesH
ii' to have a link between the costs incurred and charge recoveredH
iii' to formulate a base on which future charges can take place with increase or
decrease in costs.
F.5 0evying of service charges as per schedule in force from time to time may
sometimes result in complaints from the account holders. ,he 4ranch @anager must
devote personal attention to such complaints and handle them with tact, patience and
moderation. In the case of accounts of valued and important account holders 4ranch
@anagers have the discretion to waive the service charges though applicable.
/owever, 4ranch @anagers should use this discretion with circumspection. *ervice
charges in current accounts of customers belonging to the $efence *ervices or of their
immediate dependents may be waived.
F.< Ehen unremunerative accounts are prudently weeded out from time to time, more
time and attention can be devoted to accounts which are satisfactorily conducted. ,his
will enable the 4ank to improve its service to account holders by making 2uick payment
of che2ues and rendering other services.
F.: *ervice charges should be credited to .rofit and 0oss +ccount % *ervice Charges
Current +ccount. $ebit Aoucher for refunds should be posted with red ink on the credit
side of .rofit and 0oss +ccount and deducted.
F.F In "ebruary and +ugust each year, names of accounts which are likely to be
sub>ect to service charges should be entered on special sheet !"orm C$ DD' and early
in @arch and *eptember each year the service charges should be debited to these
accounts. !If at the time of levying service charges, the balance is not sufficient to
provide minimum charges in an account, it would be advisable to leave, say 6e. 1=% in
the account to keep it running and take the remainder towards service charges'.
$nterest %aya&le on Current 'eposit Accounts )
8.1. In terms of the 6eserve 4ank of IndiaCs directive, payment of interest on current
accounts except the accounts of the exempted categories mentioned below, is
prohibited. Interest is also not payable on margin money held in current accounts with
4ranches.
8.. Interest should be paid on the credit balances lying in a current account in the
name of a deceased depositor, from the date of death of the depositor till the date of
payment of his=her legal heir!s', representative=s, nominee=s at the rate applicable to
*avings 4ank $eposits as on the date of payment. ,his is also applicable to current
accounts in the name of a proprietorship firm where the sole proprietor is deceased.
8.(. +t times interest becomes payable in accounts where the che2ues=other
instruments deposited are drawn on the outstation branches and sent for collection, if
the proceeds are not realised=credited to the customerCs accounts or the unpaid
instruments are not returned to the customers within a specified period from the date of
their lodgement. Interest at the rate of as conveyed by /.3. from time to time should be
paid for such delayed collection. *uch interest should be paid only when the amount of
interest is 6s. <=% or more. Interest should not be paid on che2ues=other instruments
lost in transit.
CHAPTER 3 CURRENT ACCOUNTS D
8.5. *uch cases, however, should be rare as with the services of the *ervice 4ranches,
Courier *ervices=*peed .ost speedy collection of instruments is possible. Ehere such
interest is to be paid for the delay in collection, the matter should be reported to the
appropriate higher authority giving specific reasons for the delay and prior sanction be
obtained before payment is made. It should be noted that the period specified has been
allowed only for the purpose of calculating interest as aforesaid and under no
circumstances it should be construed that the 4ank can take this much time for
collection=return of outstanding instruments. .rompt despatch of collection instruments
and timely follow up would ensure a smooth collection service.
8.<. Current +ccounts maintained by the 6egional 6ural 4anks only with the *ponsor
4ank would earn interest at the rate mutually agreed upon by the 6egional 6ural 4ank
and the *ponsor 4ank, which is presently nil. ,his rate is sub>ect to change as and
when reviewed by the *ponsor 4ank. *uch interest should be calculated on daily
product basis and be paid at half%yearly intervals in @arch and *eptember every year.
In terms of the existing 64I directives interest need not be paid on current account
balances of 6egional 6ural 4anks not sponsored by us.
Balance Confirmation (etters
D.1 In view of the instructions printed in the Current +ccount *tatement "orm, it is not
necessary for the 4ranches to send a 4alance confirmation letter !"orm No. C$ <8' to
all current account holders except holders of )
i' 3verdraft +ccounts
ii' ,rust +ccounts
iii' Non%resident +ccounts
iv' +ccounts where the 4ranch @anager considers it necessary in the 4ankCs interest to
obtain confirmation letter.
D. 4ranches should send to these account holders a 4alance Confirmation 0etter
!"orm C$ <8' once a year !as of (1st @arch' as soon after @arch closing as possible.
D.( Ehen 4alance Confirmation 0etters are received back from these account holders
duly signed, they should be attended to immediately. *ignatures on 4alance
Confirmation 0etters should be verified by cancelling officers in the usual manner.
!4alance Confirmation 0etters must be signed by account holders in exactly the same
manner as che2ues are drawn on the accounts.'
D.5 3fficers should initial on the left side of the balance in the 4alance 4ook against the
accounts in respect of which 4alance Confirmation 0etters are received duly signed by
account holders. ,hereafter, the 4alance Confirmation 0etters should be pasted in a
separate letter pasting file, which should not be accessible to unauthorised persons.
D.< ,he @anager should pay personal attention to ensure that 4alance Confirmation
0etters are received back duly signed by the holders of )
!a' ,rust accounts
!b' Non%resident accounts
!c' +ccounts where operations are few and far between
!d' +ccounts where there have been occasions for return of che2ues for reason
#$rawerCs signature differs#
!e' +ccounts operated by the +ttorney or the @andatory. !,he letter should be signed
by the $onor= @andator'.
D.: +part from the 4alance Confirmation 0etters sent as on (1st @arch, the @anager
may also send at his discretion 4alance Confirmation 0etters on any other days for the
above%mentioned accounts.
CHAPTER 3 CURRENT ACCOUNTS <
D.F +ccount holders who have not confirmed their balances may be re2uested to do so
whenever they happen to come to the 4ank personally. If necessary, reminders should
be sent.
Current Account tatements
1;.1 4ranches may send statements of accounts at the option of the current account
holders. If a statement of account is to be sent, the fre2uency thereof should also be
noted. In accordance with these instructions, prepare and despatch statements of
accounts to account holders within < days from the date to which the statements relate.
1;.1+ ,o obviate delay, the current account statements should be sent to customers in
a staggered manner instead of sending them by a target date every month, in case the
branch is having large number of current accounts. 3therwise, statements should be
dispatched in one lot.
1;. + credit entry in a statement may be binding on the 4ank if the account holder can
show that he altered his position by relying on such a credit entry. Eith regard to a
debit entry in a statement, the account holder is under no duty to check the entries and
he can repudiate incorrect debits to his account. Care should be taken to see that the
account holderCs credit is not harmed by return of a che2ue drawn in reliance upon the
erroneous posting the account. ,he system of authorisation in 4ranches, therefore,
must be such that mistakes or errors in postings such as, posting of wrong amount or
posting in wrong account and extension of wrong balances are avoided. Ehen any
mistake or error in posting is found, the account holder should be advised immediately
and the error should be rectified.
1;.( It is desirable to avoid abbreviations while posting the entries. ,he customers
must understand the entries without difficulty. /owever, the following 1 standard
abbreviations may be used.
!i' C0& Clearing Che2ue !vii' 6pp 6emittance .er .ost
!ii' $=E $ividend Earrant !viii' 6td.
6eturned
!iii' ".$.6 "ixed $eposit 6eceipt . !ix' 6eptd. 6epresented
!iv' IN, Interest !x' *=C *afe Custody
!v' .63 .roceeds !xi' *=I
,ransfer Che2ue on
3urselves
!vi' 6=C 6eturned Che2ue !xii' ,6 *tanding Instructions
1;.5 "ull postal address of the account holder should be appear on the first sheet of the
statementH each statement sheet should bear the name, number of the account.
1;.< +s a rule, statements should be despatched by post or hand delivery, unless
account holders call for them personallyH statements may, however, be handed over in
closed covers to the known messengers or representatives of account holders. !+lso
refer the Chapter on $eposits%&eneral'. + record should be kept in a register=pass
book of statements of accounts despatched to account holders. !+ specimen of the
ruling is given in +ppendix III'. Ehere the statement is returned undelivered due to
change of address, efforts should be made to contact the account holder to obtain the
correct address.
'uplicate Current Account %ass Boo)s/tatements
11. 4ranches may issue duplicate statements to account holders upon their written
re2uest. ,he letter should be signed in the same manner as che2ues drawn on the
account are signed. Charges at the rate prevalent at the relevant time should be
CHAPTER 3 CURRENT ACCOUNTS 1@
recovered from the account holders. Care should be taken to see that no annoyance is
caused to valued account holders. ,he word $I.0IC+,1 should be written on the
statement and a suitable remark should also be made in the a=c..
1. Charges for issue of duplicate *tatement of account should be credited to .rofit
and 0oss +ccount B@iscellaneous 6eceiptsC.
*eturn of %aid C!e+ues
1(.1 *ome account holders re2uire their paid che2ues to be returned to them at agreed
intervals. ,he facility of returning paid che2ues should be extended to only approved
customers selectively at the discretion of the @anager. + 0etter of Indertaking
!*pecimen%+ppendix IA' should be taken when any such arrangement for the return of
paid che2ues is made in an account. + note of such arrangement should be made at in
the account under special instructions.
1(. Che2ues which are in dispute should not be returned until the dispute is settled.
.aid che2ues may be returned upto the last date for which the current accounts are
balanced.
1(.( It should be ensured that the paid che2ues !after authorisation by an officer is
completed' are kept separately every day neatly arranged and bundled till they are
re2uired to be sent along with the duplicate copy of the statement of account. +
statement of account should be prepared on "orm C$ FD+ in triplicate % the original
serving the purpose of statement of account, the duplicate to be sent along with the
paid che2ues and the last copy to be retained at the 4ranch to serve as the #$uplicate
Aoucher# for the paid che2ues returned which should be carefully preserved like
vouchers either by keeping it along with the bundle of vouchers relating to the month or
by keeping it filed in a separate file. +t the time of returning the paid che2ues
!periodically', it should be ensured that they are arranged in the same order in which
they appear in the statement of account and particulars of their dates and the names of
banks through which they were paid should be entered under the columns provided for
this purpose in the statement of account !second and third copies' % these entries are
necessary to have a complete record of the paid che2ues returned.
1(.5 +t the time of sending the copy of the statement of account with the paid che2ues,
a printed covering letter !"orm C$ 1;8' should be used as a covering letter % this also
contains a counterfoil which is re2uired to be returned by the account holder
acknowledging receipt of the che2ues and confirming the balance in the account. It is
important to get back the acknowledgment !counterfoil' duly signed by the customer !in
case of debit balance, over appropriate revenue stamp' and the matter should be
followed up until it is received.
1(.< If any difficulty is experienced in obtaining the counterfoils containing the
acknowledgment%cum%balance confirmation promptly and regularly from a customer,
the 4ranch @anager should suitably notify the customer, regretting the 4ankCs inability
to continue the facility and should withdraw it.
'ormant Current Accounts
15.A sa&ings as well as current account should be treated as inoperati&e / dormant if
there are no transactions in the account for a period of two years. .or the purpose of
classifying an account as inoperati&e, both the types of transactions, i.e. debit as well
as credit transactions induced at the instance of customers as well as third party
should be considered. 5B$ has clarified that interest on term deposits credited to the
account of the customer should be treated as customer induced transaction since it is
according to the mandate of the customer. $n such cases, ,the account should be
treated as an operati&e account as long as the interest on term deposit account is
CHAPTER 3 CURRENT ACCOUNTS 11
credited to the Sa&ings Bank account. The Sa&ings Bank account can be treated as
inoperati&e account only after two years from the date of the last credit entry of interest
on fixed deposit account. ,he Current +=c termed as dormant should be transferred in
"ebruary and +ugust each year to *undry $eposit +ccount % #Inclaimed 4alances#
maintained under the head #*undry $eposit#. ,he total of the balances in this head
being reflected in the &eneral 0edger account #*undry $eposits#.
15. +ccounts should not be transferred to *undry $eposit +ccount % #Inclaimed
4alances# in the following cases)
a' where an account is stopped under a garnishee or other Court order
!b' where operations of an account are stopped till the grant of legal representation is
received
!c' where, for particular reasons, discretion would dictate that an account should
remain current.!If, for instance, there is an operative +ccount No. I and a dormant
+ccount No. II with a small balance, and the account holder is known to be doing
active business, it would ordinarily be decided not to transfer the balance of the
dormant +ccount No. II to *undry $eposit +ccount % #Inclaimed 4alances#'.
Operationalising t!e 'ormant / $noperative accounts
i. 4ranches should identify all the inoperative accounts, not operated for
more than two years, and with a balance of 6s 1;;; to be classified as
inoperative account through system every half year. 4ranches should
approach the customers and inform them in writing !+ suitable system
generated communication will be sent to such customers ' exhorting them
to !a' activate their accounts or !b' they may be asked to provide details of
their existing 4ank account details, if they are shifted to new area so as to
transfer the amount lying in the account.
ii. 4ranches are re2uired to make an +nnual review to identify inoperative
accounts and send communication to the customer stating that the account
will slip into the inoperative=dormant category within ( months. In all such
cases, where the accounts continue to be inoperative even after sending a
written reminder, the customers will be contacted over Jphone or in person
for getting the accounts activated and a record thereof shall be maintained
at the branch. In cases where the letters sent by the 4ank are returned
undelivered, the branch should make efforts to contact the customer
immediately thereafter by approaching the introducer or the neighbors at
the last recorded address and gather information about the
accountholder7s present whereabouts.
iii In all other cases, i.e. accounts with balances of less than 6s 1,;;;=%,
system generated reminders will be sent after one year from the date of last
customer induced operation in the account and necessary follow up through
phone calls= personal visits to the address given at the time of account
opening= last recorded address for getting the account activated. If necessary
help of the introducer =customer7s neighbors be sought to contact = locating the
customer for the above purpose. In case of deceased customer the details of
legal heirs are to be obtained.

teps to &e ta)en ,!en re+uests for activation are received
Ehen a re2uest for activation of a dormant account is received, approval for activation
should be accorded by a designated officer at the branch. *he=he will verify and satisfy
her= himself that the account was opened in a 89C compliant manner and the reasons
adduced by the account holder for not operating the account are genuine. "resh set of
CHAPTER 3 CURRENT ACCOUNTS 12
89C documents in respect of residence proof shall be obtained and the same should
be confirmed by sending letter to the above address given by the customer. "urther it
should be seen that the amount of deposits being made is commensurate with the
occupation level of the customer, as declared in the account opening form and the
transaction should be closely watched.

*egister of 'ormant Current Accounts
1<.1 .articulars of dormant current accounts transferred to *undry $eposit +ccount %
#Inclaimed 4alances# should be maintained in the 6egister of $ormant Current
+ccounts !"orm C$ D', so that these particulars are available at one place, year after
year, and obviate the necessity of recording them in each subse2uent new *undry
$eposit 0edger opened. 4alances of outstanding dormant accounts in the 6egister of
$ormant Current +ccounts should be >otted half%yearly and tallied with the 4alance of
*undry $eposit +ccount % #Inclaimed 4alances#.
1<. ,he 6egister should be opened alphabetically, with ade2uate number of pages
allotted to each alphabet so that, in future years also the record is maintained
alphabetically. ,he particulars in the 6egister of $ormant Current +ccounts should be
as follows )
a' date on which the account was opened
b' file number, account number and special instructions, if any
c' title of the account
d' balance and date of last operation on the account
e' che2ue series numbers outstanding
f' date when balance paid and how paid
g' remarks.
1<.( +t the end of the 6egister, a few pages have been provided with a different ruling.
,hese pages are for balancing and if properly used, would ensure that the total of
#Inclaimed 4alances# in *undry $eposit 0edger agrees with the outstanding balances
of all dormant accounts in the 6egister. Ehen recording transactions, the voucher %
credit or debit % should
be posted in )
a' *undry $eposit +ccount % #Inclaimed 4alances#
and
b' ,he 6egister !in the pages with special ruling which are provided at the end'.
+ fresh balance should be extended in the *undry $eposit +ccount % #Inclaimed
4alances# and in the pages at the end of the 6egister. ,he balances shown both in the
*undry $eposit +ccount % #Inclaimed 4alances# and in the pages at the end of the
6egister must always agree.

1<.5 Ehen transferring balances of inoperative current accounts to *undry $eposit
+ccount % #Inclaimed 4alances#, a ledger%wise list of such accounts should be
prepared with one set of transfer vouchers for the consolidated balance of all the
accounts to be transferred. .ostings should be made in the respective accounts in the
ledger from the list and the credit voucher should be posted in *undry $eposit +ccount
% #Inclaimed 4alances#, particulars of current accounts, balances of which are
transferred, together with the respective balances should be entered in the 6egister as
re2uired in the foregoing paragraphs. ,he amount of credit voucher should also be
entered in the last pages in the 6egister. ,he occasions to debit *undry $eposit
+ccount % #Inclaimed 4alances# arise when an account holder claims the balance of
the dormant account or starts operating on the account.
CHAPTER 3 CURRENT ACCOUNTS 13
1<.< 4efore returning a che2ue with the reason #+ccount closed#, the officer should first
ascertain !from the Che2ue 4ook $elivery 6egister' the title of the account and search
for the account in the identified $ormant Current +ccounts. If an account is traced in
the $ormant accounts, before paying the che2ue, the balance of the dormant account
!as noted in the 6egister' should be transferred from *undry $eposit +ccount %
#Inclaimed 4alances# to the appropriate current account ledger. +ll particulars of the
dormant account available in the 6egister should be noted in the regular ledger
account. Ehile effecting the transfer of balances of dormant accounts from *undry
$eposit +ccount % BInclaimed 4alancesC to current account ledgers, any payment !i.e.
debit vouchers' from this account should be permitted only under the signature of two
authorised officials, one of whom must be the 4ranch @anager ! @anager=*enior
@anager in case of larger branches' who will do so after satisfying themselves that the
proposed operations on the accounts are under circumstances which do not arouse
any suspicion. ,he drawersC signatures on che2ues on inoperative accounts should be
verified with more than usual care.
1<.: Inder *ection : of the 4anking 6egulation +ct, 1D5D, banks are re2uired to
submit to the 6eserve 4ank of India the particulars of accounts dormant for ten years.
+ record of the date of last operation in dormant account is, therefore, necessary so
that accounts dormant for ten years can be reported to the 6eserve 4ank of India. It is
necessary, when opening new ledgers, to make a note in the ledger pages of accounts
which have remained dormant say, for the last : months, in the following manner )
#Not operated upon since .........................................................................................#

!*tate the date of last operation'
1<.F It should be borne in mind that the particulars of accounts dormant for ten years is
to be obtained from )
a' Current +ccounts identified and marked to by the system
b' Current accounts which may be dormant for ten years !but balances of which are not
transferred to *undry $eposit +ccount % #Inclaimed 4alances#' for some special
reasons.
1<.8 It is of utmost importance that the balances in all accounts which are dormant or
where operations are few and far between are confirmed on the 4ankCs usual 4alance
Confirmation 0etters. ,he @anagers should give personal attention to see that this is
done. 0etters !*pecimen % +ppendices A and AI' may be sent to account holders
whose accounts have been dormant with comparatively small balances for a
considerable time. ,he shorter letter !*pecimen % +ppendix A' should first be sent to
the account holder whose account is dormant. + diary note may be taken for a
reminder to be sent six months later. +t the expiry of six months the account should
again be scrutiniKed. If the account holder has not taken appropriate action either by
closing the account or by resuming transactions, the second and longer letter
!*pecimen % +ppendix AI' may be sent. ,he 4ranch @anagers are advised to use
these forms with discretion. ,hey should not hesitate, where circumstances re2uire, to
send a polite, specially worded letter, instead.
Ot!er $nstructions
1:. ,he Instructions given in Chapters on $eposits % &eneral and Current=*avings
4ank +ccounts % &eneral shall also apply to Current +ccounts.
17 . BO: C!rrent *e"ost Pl!s Acco!nt=
Ths "rod!ct .th ts rch $eat!res s to attract h#h &al!e c!rrent de"ost
acco!nt holders at all o!r TB> ,ranches. The detaled $eat!res o$ the "rod!ct
are #&en n the Cha"ter C 'Aol!%e4 :+ .th other de"ost sche%e "a#e44
CHAPTER 3 CURRENT ACCOUNTS 14
CHAPTER 3 CURRENT ACCOUNTS 1?
A%%-.'$/ $
!.aragraph 5.'
'-C(A*AT$O. A.' ".'-*TA0$.1 TO B- OBTA$.-' 2*OM C"**-.T
ACCO".T34O('-* 5COM%A.$-/2$*M6 .OT 4A7$.1 A.8
BO**O9$.1/BA.0$.1 2AC$($T8 9$T4 A.8 OT4-* B*A.C4/BA.0
$ate )
,o,
,he 4ranch @anager,
4ank of India,
LLLLLLLLLLLLLLLLLLLLLLLLL4ranch=3ffice
$ear *ir,
Eith reference to my=our application datedLLLLLLLLLLLLLLLLLLLLLLLLfor opening
current account in your bank, I=Ee confirm and declare that I=Ee do not have any
advance or other banking facility from any branch of your bank or of any other bank
and I=Ee undertake that I=Ee shall not obtain any advance or other banking facility
from any other branch of your bank or of any other bank without giving to you prior
written notice.
9ours faithfully,
!+uthorised *ignatories'
!,o be signed by all .artners of a firm=to be signed by authorised $irectors of a 0imited
Company'
CHAPTER 3 CURRENT ACCOUNTS 1C
A%%-.'$/ $$
!.aragraph 5.'
'-C(A*AT$O. A.' ".'-*TA0$.1 TO B- OBTA$.-' 2*OM C"**-.T
ACCO".T 4O('-*5COM%A.$-/2$*M6 4A7$.1 BO**O9$.1/BA.0$.1
A**A.1-M-.T 9$T4 T4- BA.0 / OT4-* BA.0
$ate )
,o,
,he 4ranch @anager,
4ank of India,
LLLLLLLLLLLLLLLLLLLLLLLL4ranch=3ffice
$ear *ir,
Eith reference to my=our application datedLLLLLLLLLLLLLLLLLLLLLLLfor opening
current account with your 4ank, I=Ee furnish below the details of all borrowings=banking
arrangements made by us with your bank as well as other banking institutions)
.ame of t!e Ban) and Address .ature and details of &an)ing /
&orro,ing arrangement
Ee confirm and declare that the above are all the existing banking=borrowing
arrangements made by us. Ee undertake to furnish to you promptly details of any
changes in respect of the above and=or any other information in this connection, which
may be re2uired by you.
9ours faithfully,
!+uthorised *ignatory'
!,o be signed by all .artners of a firm=to be signed by authorised $irectors of a 0imited
Company.'
CHAPTER 3 CURRENT ACCOUNTS 1B
APPENDIX III
!.aragraph 1;.<'
pecimen of *egister of tatements despatc!ed to Account 4olders
9earLLLLLL
$nstructions #
1. ,he record may be kept ledger%wise and period%wise either in the same register=pass
book or by using separate registers=pass books.
. Cut sheets containing twelve months !from -anuary to $ecember' may be provided
in the register= pass book as per the re2uirements of the 4ranch, preferably for five
years. ,he cut sheets may be provided on the lines of the existing $aily 1xtract of
3verdraft 4alances !"orm 3$ 15<'. ,he columns may, however, be provided as per
the specimen.
(. ,he dates on which the statements !for previous month' are sent to the customer
may be mentioned in the appropriate month%wise columns provided in the
register=pass book.
5. In the case of monthly statements, all endeavours should be made to send the
statements to the customers before the <th of the subse2uent months.
<. + similarly ruled register=pass book may be maintained for other periodical
statements of accounts.
+ccount
Number
,itle of
the
+ccount
-anuary "ebruary @arch +pril @ay -une -uly +ugust *eptember 6emarks
+1 +mit M
Co.
1 1 and so on
+ +ttract M
Co.
1 and so on
+( +. A. M
Co.
( and so on
+5 +. G. M
Co.
( ( < and so on
CHAPTER 3 CURRENT ACCOUNTS 1D
A%%-.'$/ $7
!.aragraph 1(.1'
pecimen of letter of "nderta)ing for return of %aid C!e+ues to &e o&tained
2rom Account 4olders
3n stamped paper of
appropriate value
.lace H
$ate)
,o,
4ank of India,
LLLLLLLLLLLLLLLLLLLLLL4ranch
$ear *irs,
*e: # Our Current Account ,it! your &ranc! at::::::::::::::::::::::::::
In consideration of your having, at our re2uest, agreed to return to us each
week=month che2ues drawn by us on your 4ranch at......................, we hereby
undertake and agree with you as follows )
!1' Ee shall confirm the balance whenever called upon by the 4ank to do so.
!' Ee shall give you a receipt and acknowledgement for the che2ues delivered each
week=month in the prescribed form.
!(' Ee shall keep the said che2ues safe and secure for a period of at least eight years
from the date of their payment.
!5' Ee shall not part with the said che2ues except when re2uired by law.
!<' Ee shall produce the said che2ues before the Income ,ax +uthorities whenever
called upon to do so.
!:' Ee agree to indemnify you against any losses, damages, costs, expenses, etc., you
may incur or be put to by reason of your acting upon our re2uest as above.
9ours faithfully,
LLLLLLLLLLLLLLLL
'A!thorsed S#natores+
CHAPTER 3 CURRENT ACCOUNTS 1<
A%%-.'$/ 7
!.aragraph 1:.8'
pecimen of 2irst (etter of Advice 3 $noperative Accounts
6ef. No. $ate.........................
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL
$ear *ir=@adam,
*e: ) 9our Current +ccount
Ee observe that your current account has been dormant for some time and
your balance at the close of business today is 6s........................in your favour.
. Ee trust that it is not your desire to cease banking with us and we would be
very glad if you would resume deposits in and withdrawals from your account.
(. If the account does not suit your immediate needs, we will endeavour to meet
your re2uirements if you will very kindly communicate with us.
9ours faithfully,
@anager
CHAPTER 3 CURRENT ACCOUNTS 2@
A%%-.'$/ 7$
!.aragraph 1:.8'
pecimen of econd (etter of Advice 3 $noperative Accounts
6ef. No. $ate..........................
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL
$ear *ir=@adam,
*e: # 8our Current Account
Ee observe that your current account has been dormant for some time and
your balance at the close of business today is 6s.LLLLLLLLLLLLLin your favour.
. Ee trust that it is not your desire to cease banking with us and we would be
very glad if you would resume deposits in and withdrawals from your account.
(. If the account does not suit your immediate needs, we will endeavour to meet
your re2uirements if you will very kindly communicate with us.
5. *hould you, however, have decided definitely to discontinue making use of
your account with us, we should be glad if you would please instruct us regarding the
disposal of the balance standing to your credit and return to us the unused che2ue
forms in your possession.
9ours faithfully,
@anager.
CHAPTER 3 CURRENT ACCOUNTS 21
CHAPTER 3 CURRENT ACCOUNTS 22
A%%-.'$/ 3 7$$
!.aragraph 5.('
pecimen tatement of current Accounts Opened/Maintained in t!e .ames of Close *elatives of taff Mem&ers
46+NC/ "36 ,/1 NI+6,16 1N$1$
Name of the
+ccount
+ccount
opened on
+ccount
introduced
by
+ctivity Constitution Name!s' of .roprietor=.artners=
$irectors and particulars of staff
member who is a close relative
of the
.roprietor=.artner=$irector M
nature of relationship
6emarks on conduct of +ccount
such as @inimum M @aximum
balance, che2ues returned unpaid
if any, and reasons therefor,
overlimit granted if any etc.
CHAPTER 3 CURRENT ACCOUNTS 23
APPENDIX !III
'Para#ra"h 4 C.1+
pecimen of *egister of Temporary overdrafts
.O: C' 3 2;
$ate of ,3$ Name of +ccount $ate of +ccount
opened
+mount of
Che2ue
!6s.'
+mount
3verdrawn
!6s.'
No. of ,imes ,3$
given in last (
months
Initial $ate +=c .ut in
order
Initial 6emarks
CHAPTER 3 CURRENT ACCOUNTS 24
A%%-.'$/ 3 $/
!.aragraph % :.8'
tatement of Temporary Overdrafts
46%( !+'
46+NC/ ) "36 ,/1 @3N,/ 3"LLLLLLLLLLLL;
@aximum
permissible ,3$ !as
per delegation' !6s.'
.eriod for which the
,3$ is given
4alance as on
the date of
reporting 6s. $r.
$etails of ,emporary 3verdrafts given during last
three months
6emarks !state the reasons for ,3$ and steps
taken for recovery. +lso specify 3verlimit,
other deposits=facilities and outstandings
therein, if any'
No. of times given @aximum 3verdrafts
!6s.'
N3,1 ) *eparate statements to be submitted for reporting ,emporary 3verdrafts=3ver limits.
Appendix X
(Paragraph 4.1
*ate o$ TO* Na%e o$ Acco!nt *ate Acco!nt o"ened A%o!nt o$ che9!e TO* allo.ed 'Rs.+ Sanctonn# A!thort/ 3 *ate
CHAPTER 3 CURRENT ACCOUNTS 2?
!A"# O$ %"&%A : '()%*(& +,''("- A++O,"- ',.(*

Opening of
Accounts
!urrent accounts would be opened for appro&ed persons/firms such as
6 $ndi&idual 7 Single Accounts.
8 Two or more indi&iduals 7 0oint accounts
9 Sole proprietary concerns.
: Partnership .irms.
; 0oint 1indu .amilies or .irms.
< 'imited !ompanies.
= Associations, !lubs, Societies, etc.
> Trusts.
? )xecutors and Administrators.
6@ Pro&ident .unds.
66 'iAuidators.
68 /ther Banks.
69 State .inancial !orporations.
"ote: $n appro&ed cases, branches may open non7operating accounts called
B!ollection AccountsB.
Account Opening
$orm
!ommon Account /pening .orm and Bill $ndemnity 'etter *.orm Bills 6@@;+ should be
completed in all respects and signed by all the account holders irrespecti&e of the
mode of operations on the account.
Opening and
%ntroduction of
Accounts/
%dentification of the
+ustomer
The account shall be opened on the basis of any of the documents stipulated below,
and in their absence, opened on the basis of introduction by an existing customer or
any person, who is in a position to satisfy the Bank by submitting his/her documents.
Such documents are Passport/PA !ard/"oter#s $dentity !ard/%ri&ing 'icence and
recent passport si(e Photograph/)mployer#s $% !ard *or satisfactory confirmation/letter
from )mployer+/'etter from a recognised public authority or public ser&ant &erifying the
identity and residence of the customer to the satisfaction of the Bank/Photo !redit
!ard.
Address Proof Passport/5ation !ard/)lectricity or Telephone Bill would ser&e the proof of address. %f
Passport or any of the other documents listed a0o1e sho2s the current address
also3 no need to su0mit additional proof of address.
&eclaration re.
!orro2ing
%epositors en3oying any credit facilities with other Bank*s+ must furnish full particulars
of such facilities with the name*s+ of the banks concerned. The Bank has e&ery right to
CHAPTER 3 CURRENT ACCOUNTS 2C
$acilities 2ith
Other !an4s
refer to the lending Banks concerned for Status reports/o /b3ection !ertificate before
opening such other bank borrowers# !% accounts with the Bank.
5inimum &eposit
$or Opening the
Account
5s.;@@@/C for $ndi&iduals.
5s.6@,@@@/C for .irms/Business )stablishments.
'estrictions $' *as to the number of deposits into and withdrawals from the account per day+.
6oint Accounts of
%ndi1iduals
!an be opened with operational instructions ,)ither or Sur&i&or- or .ormer or Sur&i&or-
or ,Any /ne/All of the 0oint Account 1olders-.
Other Accounts 4hile the operational instructions can be in any manner *say either or sur&i&or or
former or sur&i&or or any one Partner/%irector/Trustee etc,+, the same would be jointly
authenticated in the account opening form in case of Partnership .irms and in case
of 'imited !ompanies or Trusts or Societies etc would be in accordance with the Board
5esolution or the Trust %eed or the Bye 'aws as the case may be.
Alterations in
Operational
%nstructions
Are possible with the consent of A.. the joint account holders. Bank will not be
bound to act on the instructions of one or some only of the 3oint account holders
regarding such alteration.
&eath of a
sole depositor or
last sur1i1ing
&epositor
Balance in the account shall be paid to the legal representati&e of such sole
depositor or the sur&i&ing or the last sur&i&ing depositor, as the case may be.
'egal representati&e shall mean either the executor or the administrator who has
obtained Probate or 'etters of Administration or the holder of a grant of Succession
!ertificate or of any other proper grant of legal representation to the estate of such
deceased depositor. $n the case of the firms or companies etc fresh operational
instructions may be gi&en upon the death of any authori(ed signatory.
&eposits are made
0y means of
A Paying7in7slip, obtainable from the Branch. $n addition to !ash and !urrency notes,
the Bank recei&es for collection and credit to customers# accounts, bills, notes,
cheAues, 1undies, $nterest and %i&idend 4arrants etc.
1owe&er, separate pay7in7slips should be deposited for the different instruments listed
abo&e. $n respect of cheAues, separate pay7in7slips should be deposited for local and
upcountry collections. So also, separate pay7in7slips should be deposited for cheAues
drawn on Bank of $ndia7local and upcountry branches. !ustomers are particularly
reAuested to cross all cheAues intended for collection before paying them into their
accounts. Such deposits of cheAues can be at any other !BS/DBB branch for credit to
parent account at a !BS/DBB branch.
+he7ue !oo4s !heAue book will be issued and the depositor is reAuired to tick in the rele&ant box in
CHAPTER 3 CURRENT ACCOUNTS 2B
the account opening form itself. The same will be issued upon the Bank#s discretion
and sub3ect to reco&ery of stipulated charges.
Account holders are reAuested to examine carefully the cheAue books issued to them
and to &erify that the number of forms in each cheAue book issued is correct and that
the running numbers of cheAues are in serial order.
SubseAuent cheAue books will be issued upon submission of the duly completed
reAuisition slip in the last7used cheAue book.
%epositors should ensure safe custody of their cheAue books and follow all the
instructions contained in the cheAue books themsel&es carefully.
&ra2ing of
+he7ues
8
+he7ues &ra2n to
Order or for smaller
amounts
4riting should be clear, distinct and legible.
!heAues must be drawn on the printed forms pro&ided by the Bank in such a way as to
pre&ent alterations or addition after issue.
The Bank reser&es the right to itself to refuse payment of cheAues drawn otherwise or
to E/rder# or for smaller amounts.
!heAues must not be post7dated.
The amount of a cheAue must be stated both in words and figures.
The Bank will refuse payment of cheAues on which the signature does not exactly
correspond with that on record at the Bank.
+rossing of
+he7ues 8
Alterations therein
o alteration canceling the crossing of a cheAue will be recogni(ed unless the full
signature of the drawer is appended to the alteration and the altered cheAue is
presented for payment by the drawer or his known agent. /therwise the cheAue will
not be paid.
*top payment
%nstructions
The Bank will register instructions from the drawer of a cheAue to stop payment of it,
but cannot undertake any responsibility in case such instructions are o&erlooked in the
absence of any written confirmation or if the cheAues had already been paid in the
normal course. Acknowledgement would be gi&en by Bank for such instructions.
%nterest on +urrent
&eposits
o interest will be allowed on balances on !urrent Accounts. 1owe&er, Sweep7
/ut/Sweep7in facility is a&ailable under !% Plus/!% Super Plus deposit accounts.
+harges All Bank#s charges le&ied for different types of transactions/ser&ices are displayed in
the Bank#s website www.bankofindia.com.
A charge may be made on all accounts where the a&erage balance does not in the
Bank#s &iew, compensate for the number of cheAue forms and amount of stationery
used and labour in&ol&ed in keeping the account.
5inimum !alance Dinimum balance as stipulated abo&e should always be maintained. /therwise,
CHAPTER 3 CURRENT ACCOUNTS 2D
+harges penalty would be le&ied for non7maintenance of the reAuisite minimum balance. The
Bank reser&es the right of closing any account after pre&ious intimation if it is not
operated upon satisfactorily, or if a minimum a&erage credit balance is not maintained
or for any other reason whatsoe&er.
%ssuance of
+he7ues 0eyond
a1aila0le funds
!heAues must not be issued before the necessary funds ha&e been credited to the
relati&e account and clear balance is a&ailable. $f cheAues be presented when there
are insufficient funds to meet them, payment will be refused and the cheAues returned.
5epeated disregard of these instructions will entail the summary closing of the account.
Accounts must not be o&erdrawn without any prior arrangement/appro&al of the
appropriate authorities.
"omination $acility The nomination may be made in the account opening form itself in all personal
accounts/sole proprietary accounts wheree&er such nomination is desired by the
account holder*s+.
&ormant/
%noperati1e
Accounts
Accounts which are not operated upon for more than one year would be automatically
tagged as $noperati&e/%ormant account and such accounts made inoperati&e/dormant
can be reacti&ated only by the depositor himself operating on the account.
+he7ues Paya0le
only at the parent
0ranch
!heAues drawn by the depositors would be payable only at the parent branch upon
presentation. Should the depositor desire any payment at par facility, Dulti7!ity
!heuAe books are made a&ailable by !BS/DBB branches for payments through other
!BS/DBB branches, sub3ect to stipulations.
-ransfer of $unds
$rom One Account
to Another
o transfer of funds from one account to another would be allowed without the written
authority of the account holder*s+ from whose account funds are being transferred.
Such authority letter should be signed in the same manner as the cheAues on the
account are signed. $t is preferable to either gi&e standing instructions for regular
transfer of funds or to issue cheAues for the purpose.
&eposit/
2ithdra2al of cash
from other than
parent +!*/5!!
0ranch
%epositors can either deposit or withdraw cash from other !BS branches than the
parent !BS/DBB branch *where the account is maintained+. 4hile there is no
restriction on cash deposits, withdrawals are restricted to a maximum of 5s.;@,@@@/C
only. Such withdrawals would be allowed only to the depositor*s+ and not to third
parties. The authorised employee representati&e of the depositors Fwho interacts with
the branch officials on a daily basis7would not be treated as third party.
*tatement of
Accounts
Account statements are made a&ailable periodically as per arrangement and through
internet banking as well. The customers should &erify the entries therein at regular
inter&als.
CHAPTER 3 CURRENT ACCOUNTS 2<
o entry must be made in the pass book/statement, except by a Bank official. Any
error or omission should immediately be brought to the notice of the Bank. The Bank
will not be responsible for any loss arising from the neglect of this precaution.
The entries can be made of indi&idual cheAues deposited or for the total of the cheAues
deposited in a pay7in7slip as per the customer#s option and this option should be
intimated in ad&ance to the Branch officials.
+lear !alances $t should be understood that although entries may ha&e been made to the credit of an
account and such entries initialled by an officer in the pass book/statement, should
such credits be made up of cheAues, which ha&e to be collected, the amount they
represent is not a&ailable for drawing until the proceeds ha&e been released by the
Bank.
5andate/
Po2er of Attorney
The customer may authorise, for his con&enience, an agent or nominee to operate on
his account. Such an authority is gi&en either by way of Dandate 'etter or Power of
Attorney. GH! orms would be applicable to the Power of Attorney 1olders also.
By mandate letter the particular banker is informed that certain powers ha&e been
delegated whereas a power of attorney acts as a general notice and authority.
A power of attorney may be special or general. A special power of attorney authorises
a person to act in a single transaction whilst authority to act in more than one
transaction such as a bank account or generally, is a general power of attorney.
The power of attorney is a stamped document. A power to operate an account will not
include, by itself, a power to o&erdraw or borrow money.
Authority or power to borrow by the attorney should definitely/explicitly be
stated/embodied in the instrument.
'e1ocation of
Po2er of Attorney/
5andate .etter
The authority granted to an attorney to operate on the account is re&oked )$T1)5 by
specific instructions by the account holder*s+ which should be in writing, /5 *a+ where
the donor *or mandator+, or one of the donors *or mandators+ is deceased becomes
insane, insol&ent or bankruptI *b+ where there is more than one attorney with power to
all of them to act 0/$T'H the power is re&oked on the demise of one of them.
A notice of cancellation by one of the donors *or mandators+ will also ha&e the effect of
withdrawal of authority.
9eneral The Bank reser&es its rights toJ
%elete, alter or add to these 5ules at any time, and the amended rules shall be
displayed on the Bank#s website from time to time and also in the branches#
notice boards which shall be binding on the customers.
CHAPTER 3 CURRENT ACCOUNTS 3@
/pening of any account will be at the Bank#s sole discretion.
!lose any account after gi&ing at least 6; days# written notice, and without
assigning any reason whate&er, if in its sole discretion, the dealings are not
satisfactory. $n such cases, the customers concerned should surrender their
unused cheAue lea&es to the Branch concerned forthwith.
6