Question

Explain the procedure for opening of Deposit Account in a Bank.

Answer 1

There are two kinds of deposits that can be opened with commercial banks in India

They are demand deposits and term deposits. Savings deposits and current deposits are known as demand deposits. Fixed deposits, recurring deposits and reinvestment fixed deposits are known as term deposits since these deposits are opened for a fixed period

The following is the procedure for opening a savings deposit with a commercial bank in India:

1. The customer should approach a branch either nearer to his residence or his office for this purpose so that he can visit the bank branches comfortably for availing some personalised services
2. The application form for opening is available with the customer service counter or savings division in the bank branch
3. The application form has to be filled in properly
4. The following are details vital for filling up the application form - Name of the applicant; the name of his father; date of birth; age in years; address for communication; contact mobile number; contact email id; PAN card number.
5. In the case of nomination, the details required are - name of the nominee; address of the nominee; relationship of the nominee with the depositor; age of the nominee; date of the birth of the nominee
6. The applicant has to produce two pass port size photographs. Some banks may demand three photos
7. The copies of the following documents for the purpose of address proof as per KYC guidelines are to be prdouced- Voter id card/Driving licence/AADHAAR card/Passport
8. The copies of the following documents for the purpose of identity proof as per KYC guidelines are to be produced - Voter id card/Driving licence/AADHAAR card/Passport/PAN card
9. The copy of PAN card has to be produced as identity proof
10. For the purpose of verification by the branch manager, the originals are to be produced.
11. Once satisfied, the branch manager will permit opening of the account
12. The customer has to deposit amount in cash as opening balance
13. The branch official will deliver to the customer a kit consisting of the following; Pass book; Terms and conditions for the maintenance of the account; Debit card; rules and regulations for using the debit card; PIN number in a confidential closed cover.
14. Now the account has been opened and the customer is able to do transactions in the account
15. In case of requirement, the customer has to produce a separate request for getting cheque book from the bank branch
16. The customer can use his debit card, after activation done by the branch and this will take one to two days. During this process, the debit card will be linked to the account through bank server
17. After activation, the customer can use his debit card for various transactions.