CHAPTER 2

CHAPTER – 2 DEPOSITS GENERAL 1 CHAPTER 2 30/06/2013

DEPOSITS - GENERAL Introduction

1.1 One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. A depositor, depending upon his convenience and special requirements, may open accounts of different categories. The common features and essential preliminaries concerning different categories of deposit accounts are listed hereafter.

1.2 All staff members must get themselves thoroughly acquainted with the Bank's rules of business for various types of deposits and with the Reserve Bank of India directives on the subject of rates of interest etc. They should also keep abreast of any amendments/changes therein from time to time.

I.TYPES OF ACCOUNTS

Accounts of Individuals (Single)

2. This is purely a personal account in the name of an individual and is normally operated upon by the account holder himself. The account holder may authorise another person to operate on his account. For this purpose, he gives a Mandate or executes a Power of Attorney in favour of such a person. Ordinarily, any person may open only one account in his name under each type of deposit account. When two accounts are opened in the name of the same person for any special purpose, one account should be distinguished from the other account by using some suffix viz , Mr XYZ Account 'A' and Mr XYZ Account 'B' etc. Accounts in personal names indicative of trusteeship capacity of account holders should not be opened. For instance, an account in the name of Mr XYZ account "Saraswati Vidyalaya" or account "Panjarapole"

3. In order to avoid legal complications that may arise after the death of the account holder, it is desirable to suggest opening of a joint account in the names of two individuals (unless it is essential in certain circumstances to open an account in the single name only), and/or to obtain proper nomination.

JOINT ACCOUNTS OF INDIVIDUALS

4.1. A joint account is opened in the names of more than one individual for convenience of operations and/ or to avoid legal complications upon death of one of the joint account holders. A joint account is neither a partnership nor a trust account. It is important to obtain clear and unambiguous instructions regarding the mode of operation and repayment of balance of a joint account in the event of death of one or more joint account holder(s). Authority of the joint account holder to operate a particular deposit account is restricted to operation on that account only and does not automatically extend to other account, such as, a safe custody account or an overdraft account, nor does it make any party to the account responsible for an overdraft created in that joint account by the other(s) One or more of the joint account holders can authorise operation on the account on his/their behalf by giving a Mandate or executing a Power of Attorney, but, such Mandate or Power of Attorney must be given by ALL the parties to the accounts.

4.2. An account may be in the name of one person or in the names of two or more persons, arrangements can be made for one or more persons to operate upon the account and the balance to be paid to the survivors or survivor. The mode of operation of a joint account after it is opened can be altered ONLY with the consent of ALL the joint account holders. The Bank will not be bound to act on the instructions of one or some of the joint account holders regarding such alteration.

4.3. While there are no restriction on the number of account holders in a joint account, it is incumbent upon the Bank to examine such request vis-a-vis the purpose, nature of business of account holders with its relevant aspects, their financial position etc.

CHAPTER – 2 DEPOSITS GENERAL 2

Operations on Accounts

5.1. Instructions regarding operations on a joint account can take any one of the following forms:

Account in the name of Mode of Operations

A & B Either or Survivor A & B Both of us jointly or Survivor A, B, C, D, E, ETC. Any one/two or more of us or any one/two or more of

the survivors of us or the survivors of us or the last survivor

A & B Former or Survivor (Also refer paragraphs 8 to 11) A, B & C Former or Survivors (Also refer paragraphs 8 to 11)

(Note : For accounts in the name(s) of minor(s), please refer to instructions given under "Accounts of Minors")

5.2. Joint account holders should be advised to write the full title of the account on all cheques and paying-in-slips for easy identification of the account. They may be requested to use a rubber stamp indicating the full title, i.e. the names of all the joint account holders.

5.3. Unless there are instructions to the contrary, cheques or orders to pay on a joint account should be signed by all the parties to the account.

5.4. Upon the death of one of the joint account holders, where operational/repayment instructions are either by "Either or Survivor" or by "Jointly or Survivor", the right to operate the account and entitlement to the balance in the account vests with the surviving account holder. In a joint account of more than two persons, where the operational/repayment instructions are "any one/two (or more) of us or any one/two (or more) of the survivors of us or the survivors of us or the last survivor", upon the death of one of the account holders, the right to operate the account and entitlement to the balance in the account vests with the remaining (i.e. surviving) account holders in accordance with operational instructions specified.

5.4A Joint holders of the term deposit with ‘Former or Survivor’ or ‘Either or Survivor’ clause should give a specific mandate to the Bank, if they desire premature payment of the deposit amount to the survivor/survivors in case a joint holder dies before the maturity of the deposit. The joint deposit holders may be permitted to give the mandate either at the time of placing fixed deposit or anytime subsequently during the term/tenure of the deposit. If such a mandate is obtained subsequently it should be as per standard format. If the parties are desirous of giving the mandate while opening the deposit itself, the following MANDATE should be added in the Deposit account opening / additional deposit account opening form invariably:‘We would like to further clarify and declare that in the event of death of anyone or more of the joint depositors , the surviving depositors shall be within their rights to request the Bank for premature payment of the said deposit without obtaining the consent or discharge from the heirs/executors/successors of the deceased depositor.2. Accordingly, we hereby authorize the Bank to make premature payment of this term deposit to the surviving joint depositors, if so requested by them, without insisting on No Objection Certificate / discharge from the legal heirs /executors /successors of the deceased and any such payment made shall be a valid discharge to the Bank. 3. This mandate is being issued on our full responsibility and shall bind our successors, executors and heirs as well as shall continue to hold good for renewal of the said deposit from time to time.

CHAPTER – 2 DEPOSITS GENERAL 3‘If such a mandate is obtained, branches can allow premature withdrawal of term/fixed deposits by the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder. Such premature withdrawal would not attract any penal charge.

Variation in Operational Instructions

6. Instructions regarding operations on the account given at the time of opening a joint account can be varied only by the account holders jointly and Branches should not accept variation in such instructions unless authorised by ALL the parties to the account (Also refer paragraph 9).

Objections by One Account Holder to Operations by Another

7.1 When a Branch receives a letter from any one, two or more joint account holders to the effect that the Bank should not allow operations by the remaining account holder(s), a letter should be addressed jointly to all the account holders stating that the Bank has received an intimation from one (or more) of the account holder(s) that the account should not be allowed to be operated by the other(s) of them; that in view of the dispute that has arisen between the account holders, the Bank would desire to close the account unless it is operated and the cheques are signed by all the account holders jointly; that the Bank should receive within a specific time a written intimation from the account holders signed by all of them that they are agreeable to the account being operated by all of them jointly; that if the Bank does not receive such intimation within the specified time, the Bank would close the account and issue a pay-slip in favour of all the account holders, which when presented for payment should be discharged by all of them.

7.2 In specifying the time in such letter, regard should be had to the time taken for the Bank's letter to reach the account holders and time taken for their letter to reach the Bank, allowing a couple of days for their consideration and further action.

7.3 The joint letter must be addressed to the address of the account holders as appearing on the record of the Bank. If the Bank is officially aware that one or more account holder(s) has or have different address (es), copies of the joint letter must be posted to those addresses also.

7.4 If, by the time so specified in the joint letter, all the account holders do not agree as required therein, whether or not some may have agreed, the account should be closed and a pay-slip drawn in favour of all the account holders should be issued and sent with a covering letter addressed to all the account holders at the address on record with the Bank. Copies of the letter should be sent to other account holders if the Bank is officially aware that they have different addresses.

7.5 The pay-slip issued as above should be paid only if it is discharged by all the joint account holders.

7.6 Between the time of the receipt of intimation from the objecting account holder(s) and the closing of the account as above, if any cheques drawn in terms of the original instructions are presented, they should be paid even though in so doing, the balance may be substantially reduced or even brought to Nil.

Accounts to be Operated by "Former or Survivor"

(a) Operations on Accounts

8.1 Joint account in the names of two account holders 'A' and 'B' may be opened to be operated upon by "Former or Survivor". The instructions "Former or Survivor" convey that the account will be operated upon by the former 'A' alone, so long as he is alive and after his

CHAPTER – 2 DEPOSITS GENERAL 4death, by the survivor 'B'. 'B' is not to operate the account during the lifetime of 'A'. 'B' can operate the account after the death of 'A'. If 'B' dies first, the account is to be operated upon solely by 'A' and the legal representative of 'B' will have no right to the balance in the account or to operate the account. Only the legal representative of the last account holder to die is entitled to the balance in the account [Also refer paragraph 100.1(b)].

8.2 Similarly, joint account in the names of three account holders 'A', 'B' and 'C' may be opened to be operated upon by "Former or Survivor" where the following modes of operation may be allowed

(b) Variation or Revocation of the Instructions

9.0 Any variation in or revocation of the instructions "Former of Survivor" must be effected UNDER THE SIGNATURE OF THE FORMER ACCOUNT HOLDER ONLY "Former or Survivor" instructions are normally given with the intention that the "Former" i e the first named depositor should retain, as long as he/she is alive, full rights to deal with the monies deposited by him/her and the other depositor(s) i e the "Survivor(s)" should receive and deal with the monies only after the death of the "Former". Hence, the "Former" alone is entitled to make any variation or revocation of operational instructions "Former or Survivor".

(c) Overdrawing of Accounts

10. An account with the instructions "Former or Survivor" should NOT be allowed to be overdrawn even temporarily. THIS POINT SHOULD BE BROUGHT ADEQUATELY TO THE NOTICE OF THE DEPOSITORS AT THE TIME OF OPENING THE ACCOUNT.

(d) Precautions

11. A customer may sometimes wish to open an account which he wants to operate during his lifetime, but after his death the account is to be allowed to be operated upon by or the balance paid to another person and that such other person is not proposed to be a joint account holder AN ACCOUNT WITH SUCH INSTRUCTIONS SHOULD NOT BE OPENED. For instructions regarding payment of balance to another person who is not proposed to be a joint account holder refer paragraph Nos 13 to 17 on "nomination".

Addition/Deletion of Names in all Deposit Accounts of Individuals

12.1 Branch Managers have been authorised to consider request from Account holder/s for Addition/Deletion of name/s of any person/s in Demand as well as Term Deposit Accounts without reference to the heirs/legal representative and/or without obtaining 'No Objection Letter' from the legal heir/legal representatives, subject to the following :

(i) Where all account holders are alive - upon written request signed by all the account holders

(ii) Where one of the account holders is deceased - upon written request signed by the surviving account holder/s provided operational instructions in the account are any of the following :

i) 'A' only, after his/her death, jointly by 'B' and 'C' or the survivor of them,

So long as 'A' is alive, he or she will be the only person entitled to operate, after his or her death the operation will be by 'B' and 'C' jointly, and one of them is not alive, then by the survivor.

II) 'A' only, after his/her death, by either or survivor of 'B' and 'C'

The account will be operated by 'A' alone so long as he or she is alive, after his or her death, if 'B' and 'C' are both alive either can operate, if one 'B' or 'C' is already dead, the survivor can operate.

III) 'A' only, after his/her death by 'B' only if alive or by the survivor of 'B' and 'C'

'A' will operate so long as he or she is alive, after his or her death, only 'B' will operate if he / she is alive only, after 'B's death or if 'B' has predeceased 'A', 'C' can operate.


(a) Either or survivor (b) Former or survivor (c) Any one of them or any one of the survivors or the last survivor

Request for Addition/Deletion of name/s in jointly operated Deposit Accounts, where one of the depositors is deceased, should be referred to Zonal Manager for necessary consideration on merits.

12.1 A. While considering such requests, Branches should ensure that

v) a balance confirmation letter as of the date of the request for addition/deletion is obtained duly signed by all account holders.

(vi) details of changes in the account if any in the past are examined.

(vii) the name of the new depositor is added after the name/s of the existing depositor/s in order not to contravene Section 269 T (2) of the Income-Tax (Second Amendment) Act, 1981.

Changes in Records upon Addition/Deletion of Name(s).

Addition

12. 1.B. In the case of addition of a name, although the existing account will continue with the additional name, a fresh account opening card/form with appropriate instructions regarding mode of operations, repayment of balance in the account etc , should be obtained, signed by the present and new account holder(s). The account number and the date of opening of the original account should also be noted in the new account opening card/form. The letter of request, old account opening card/form and, in the case of savings bank accounts Bills Form No 1005, signed by all the account holder(s), existing as well as new, should be carefully preserved. In the relative pass book/deposit receipt, the name of new deposit holder and the date of his inclusion together with variation in operational instructions, if any, should be appropriately indicated under the full signature of the concerned Officer.

Deletion

12. 1.C. In the case of deletion of a name of a joint account holder, the name and signature of the person whose name is to be deleted should be cancelled by drawing two parallel lines with the remark "deleted", and the date of such deletion noted in the relative account opening/specimen signature card, deposit receipt and pass book under the full signature of the concerned Officer. A new specimen signature card of the remaining account holder(s) should also be obtained - the old (cancelled) card should be carefully preserved with the remark thereon that a fresh card has been obtained with the deletion effected.

Nomination in Deposit Accounts

13.1 The Banking Regulation Act, 1949 has been amended by Section 37 of the Banking Laws (Amendment) Act, 1983 by introducing new Sections 45 ZA to 45 ZF which provide, inter alia, for nomination facilities to bank customers in respect of deposit accounts, safe custody accounts and safe deposit vault lockers. The relevant rules framed by the Central

(i) the request for addition/deletion of name/s is made in writing duly signed by all the depositors/ surviving depositors

(ii)

the signatures of all the account holders on the letter of request are verified very carefully particularly in the case of deletion of a name and in case of any doubt, the account holders are contacted and confirmation obtained or preferably the account holder/s are requested to sign in the presence of the Manager.

(iii) the reasons for the addition/deletion of name/s are set out in the letter of request and that they are cogent.

(iv) the Branch is satisfied about the bonafide nature of the request

CHAPTER – 2 DEPOSITS GENERAL 6Government with reference to the above Sections are termed "the Banking Companies (Nomination) Rules, 1985". These Rules have come in force with effect from 29.3.1985.

13.2 In terms of the Banking Companies (Nomination) Rules, 1985, nomination facilities have been made available to the new as well as existing account holders of deposit accounts, safe custody accounts and renters of safe deposit vault lockers, existing and new Procedure regarding nomination in deposit account is detailed under the following paragraphs (Procedures regarding nomination facility for safe custody accounts and safe deposit vault lockers are given in the respective Chapters in Manual of Instructions, Volume 2 on 'Miscellaneous Services').

14. The Banking Companies (Nomination) Rules, 1985 are applicable to all deposit accounts whether opened by resident or non-resident Indians. For the purpose of nomination there should not be any restriction on account of the status of the nominee who may be a resident or a non-resident. However, repayment of deposit/credit balance in the account to a nominee of the depositor(s) will have to be made in accordance with the provisions of the law in force at the time of repayment. In case any restrictions are imposed by law at the time of repayment of deposit/credit balance in the account, these have to be strictly observed.

Nomination Forms for Deposit Accounts

15.1 The Banking Companies (Nomination) Rules, 1985 provide for different forms for making nomination, cancellation of nomination and variation of nomination as under : Form DA 1 - for making nomination by the depositor(s) (Specimen - Appendix I) Form DA 2 - for cancellation of the said nomination to be made by the depositor(s)

(Specimen - Appendix II) Form DA 3 - for variation of the said nomination to be made by the depositor(s) (Specimen -

Appendix III)

15.2 Branches should acknowledge in writing to the concerned depositor(s), the filing of the relevant duly completed form of nomination, cancellation of nomination and variation of nomination, as the case may be, in respect of a deposit. Filing of these forms should also be noted in the appropriate books/Registers.

15.3 To avoid any controversy about validity of nomination and to safeguard the bank against charges of improper nomination, the thumb impression of the depositor(s) in the nomination form should be witnessed by two persons.

15.4 With a view to rendering better customer service, the name of the nominee may be indicated in the Savings Bank / Current Deposit pass books and Term Deposit receipts provided that there is an express mandate from the depositor to that effect. In this connection the following may be noted :

(i) depositor is required to request the Bank to incorporate the name of the nominee on Term Deposit Receipt/s, S/B, C/D pass book (of individuals). Branches can use the existing nomination forms DA-1 & DA-3 with the following additional paragraph -

"I/We hereby, further request you to incorporate the name of the nominee on the original Term Deposit Receipt / S/B / C/D pass book which is enclosed herewith".

(ii) depositor is required to add the following paragraph in form no DA-2. "I/We enclose herewith Term Deposit Receipt / S/B / C/D pass book to enable you to

cancel the name of the nominee thereon.

(iii) facility of incorporation of the name of the nominee on Term Deposit Receipt and S/B, C/D pass book (for individuals) should be made available to all new as well as existing personal deposit accounts.

16 Salient Points regarding Nomination Facilities

CHAPTER – 2 DEPOSITS GENERAL 7(i) Nomination can be made by the depositor or all the joint depositors, jointly. Nomination facility may be extended to deposits held in the name of a sole proprietary concern.

(ii) Nomination can be made only in respect of a deposit which is held in the individual capacity of the depositor(s) and not in representative capacity as the holder of any office or otherwise.

(iii) Nomination can be made in favour of only one individual. To further clarify, in case of joint a/cs. opened in two or more persons, all of the a/c holders are required to give nomination in only one name.

(iv) Nomination, cancellation of nomination or variation of nomination can be made at any time during the currency of the deposit.

(v) In the case of Term Deposits, nomination or cancellation of nomination or variation in nomination will not cease to be in force merely by reason of the renewal of such deposits.

(vi) Joint Accounts : In the case of joint accounts, nomination, cancellation of nomination or variation of nomination should be made by all the depositors jointly on the prescribed forms as specified in paragraph 15.1 above. Any cancellation or variation of a nomination is not valid unless it is made by all the depositors surviving at the time of the cancellation or variation of the nomination.

(vii) Accounts of Minor : In the case of a deposit made in the name of a minor, nomination should be made by a person lawfully entitled to act on behalf of the minor.

(viii) Nomination in favour of a Minor : Where the nominee is a minor, the depositor(s) while making the nomination should appoint another individual not being a minor to receive the amount of the deposit on behalf of the minor nominee in the event of death of the depositor(s) during the minority of the nominee.

(ix) In the case of Joint Accounts wherein nomination was not made at the time of opening the account, the surviving depositors can make a valid nomination upon death of one of the depositors.

(x) Upon death of one of the depositors in the case of joint deposit accounts, Banks may allow verification/cancellation of a subsisting nomination if requested by all the surviving depositors acting together. This is also applicable to deposit accounts having operational instructions "either or survivor". In the case of a joint deposit account the nominee's right arises only after the death of all the depositors.

(xi) Nomination facility is available for Savings Bank Accounts opened for credit of pension However, Banking Companies (Nomination) Rules, 1985 are distinct from the Arrears of Pension (Nomination) Rules 1983 and the nomination exercised by the pensioner under the latter rules for receipt of arrears of pension will not be valid for the purpose of deposit accounts held by the pensioners with banks for which a separate nomination is necessary in terms of the Banking Companies (Nomination) Rules, 1985 in case a pensioner desires to avail of nomination facility.

(xii) A Banking company making payment to a nominee, in whose favour a valid nomination subsists on the death of the depositor(s) gets full discharge in respect of its liability relating to the deposit, in terms of the provisions of sub section 4 of Section 45 ZA of the Banking Regulation Act, 1949. The question, whether the payment to the nominee is made on or before the due date for maturity of the term deposits would not affect the said protection available to the banking company. The Question of making payment before due date for maturity would be governed by the right of the depositor(s) and the existing directives on the subject as nominee gets the similar rights, in respect of obtaining premature payment, as the depositor(s) had.

CHAPTER – 2 DEPOSITS GENERAL 8(xiii) Sub-Section (1) of Section 45 ZA of the Banking Regulation Act 1949 provides that a depositor can nominate one person to whom the deposit can be refunded in the event of the death of the depositor and Sub-Section (4) of the said Section 45 ZA stipulates that payment by a banking company to a person nominated as per provisions of Sub-Section (1) above shall constitute full discharge to the banking company of its liability in respect of the deposit. Thus, a bank gets a valid discharge only on its making payment of the deposit amount to the nominee.

However, where a loan is sanctioned against a deposit the deposit is adjusted against the loan amount only when the loan is not repaid by the borrower. As such, granting of a loan to a nominee before maturity of the deposit against the security of that deposit does not amount to payment of the deposit amount to the nominee. Therefore, the bank would not get a valid discharge if a loan is granted to a nominee against the security of the deposit.

Death of the Depositor(s) who have made Nomination

17.1 Proof of death of the depositor : Branches should follow the procedure of obtaining the certificate or any other satisfactory modes of proof of death of the depositor(s).

17.2 Identity of the Nominee : Indian Banks' Association has devised the claim format (Specimen Appendix IV) which is required to be submitted by the nominee duly completed and signed by him as well as two witnesses as under :

i) Magistrate or Judicial official ii) An Officer of the Central or State Government iii) An Officer of a bank iv) Two persons of good standing and integrity acceptable to the Bank Branches should obtain satisfactory status reports on these two persons suggested as witnesses, if necessary.

Accounts of Sole Proprietorship Concerns

18. It is an account in the name of a firm or a business owned by one individual who is its proprietor. It is, in all other respects, an account of an individual in his single name, except that it is operated upon by the individual in his capacity as the proprietor on behalf of the firm or in the name of the firm. The proprietor may authorise another person to operate on the firm's account by giving a Mandate or executing a Power of Attorney in his favour.

Accounts of Partnership Firms

19. Partnership firm comprises of two or more persons who have come together to carry out certain business by all or any one or more of them acting for all with an intention to share the profits/losses of business.

Restrictions on Number of Partners

20.1 The number of partners in a partnership firm shall not exceed ten if it transacts the business of banking and twenty if it transacts any other business. If this condition of members is not complied with, such a firm, unless registered under the Companies Act, 1956, becomes an illegal association in terms of Sections 11(1) and (2) of that Act.

20.2 Where a partnership firm consists of (i) individual(s) and other separate firm(s) or (ii) two or more separate firms, each partner of such separate firm(s) should be individually counted as a partner of the firm formed by combinations of individual or other firms for the purpose of Section 11 of the Companies Act, 1956. Thus, for instance, where four firms enter into partnership and the aggregate number of the partners of all the four firms exceeds 10 or 20 as the case may be, it would be an illegal association under Sections 11(1) and (2) of the Companies Act, 1956.

CHAPTER – 2 DEPOSITS GENERAL 920.3 Similar consideration will apply to a partnership firm composed (i) of individual(s) and a Joint Hindu Family or Families, or (ii) of more than one Joint Hindu Families. In such cases, each individual member of such Joint Hindu Family(ies) (other than the minor members) must be counted for the purpose of Sections 11(1) and (2) of the Companies Act, 1956. However, accounts of such firms should be discouraged, as far as possible, and in any event should never be allowed to be overdrawn. Sections 11(1) and (2) of the Companies Act, 1956, do not apply to a single Joint Hindu Family carrying on any business, whatever may be the number of its members.

20.4 a. In Agrawal & Company V/s. C.I.T. U.P. AIR Case the Supreme Court has expressed the following views:“It is now well settled that HUF cannot as such enter into a contract of partnership with another person(s). The Supreme Court further held that the concept of a HUF joining a partnership presents considerable difficulty. A HUF is a floating body. Its composition changes by births, deaths, marriages and divorces. Such partnership is likely to have a precarious existence. The assumption in section 4(3) of the Old Companies Act, 1913that a HUF can be a partner in a partnership appears to be based on a erroneous view of the law.”

b. In Rasiklal & Company V/s. C.I.T. Orissa the Supreme Court has stated the following: “A HUF directly or indirectly cannot become a partner of a firm because the firm is an association of individuals. A HUF not being a “person” cannot enter into an agreement of partnership. The partnership Act contains various provisions regulating the relationship between partners.”From a reading of the aforesaid judgements, it appears that HUF’s cannot be partners in a firm and hence such firms who have HUF’s as partners may be viewed as not competent to enter into contract. Therefore banks must exercise caution in dealing with such firms have HUF’s as partners while opening bank accounts.

Partnership Deeds

21. Branches normally need not insist on partnership deeds being produced before opening ordinary deposit accounts of partnership firms, otherwise, the Bank might be fixed with notice of the contents of the partnership deeds and might, possibly, be bound thereby. A partnership deed, if produced to the Bank, should be carefully studied to see whether the implied rights of partners are in any way restricted. Where the partnership deed provides for two partners to sign cheques, Branches cannot accept instructions empowering any one of the partners to sign cheques on the firm's account unless the partners suitably amend the provisions in the partnership deed. There may be other restrictive clauses concerning the bank account of the firm which might demand a suitable warning record in the ledger, specimen signature card and the account opening form. It is, therefore, preferable to avoid inspection of a partnership deed and to rely instead on Bank's Partnership Letter (Form L 438) and the legal position regarding the implied authority of a partner as stated in the Indian Partnership Act, 1932.

Registration of Partnership

22. The Indian Partnership Act, 1932, provides for registration of partnership firms. Non-registration under the Act debars a firm from suing, but it does not affect the rights of third parties in suing the firm. The advantage of registration of a firm under the Act to the Bank is that it binds the firm to the statement recorded in the Register of Firms. Branches need not press firms to register against their wishes so long as the firms want to open only ordinary deposit accounts (vide Sections 58,59, 60 and 69 of the Indian Partnership Act, 1932). The following points should be noted

(a) Partnership enjoying borrowing facilities should, as a rule, be registered under the Partnership Act

CHAPTER – 2 DEPOSITS GENERAL 10(b) Registration of a firm under Partnership Act is different from the registration of the firm under the Income Tax/Sales Tax law and registration of the Partnership Deed with the Registrar of Assurances and these must not be confused.

(c) The Branch should avoid, as far as possible, opening partnership accounts with restrictive operations thereon.

Opening of Accounts

23.1 In all types of partnership accounts, Partnership Letter (Form L 438) should be obtained along with account opening form/card duly signed by all the partners of the firm in their capacity as partners and also in their personal capacity. In case the Partnership Letter is already held in existing account at the Branch, it need not be obtained again while opening another account. It should, however, be ensured that when account in which the Partnership Letter was held is closed, a new Partnership Letter is obtained and kept on record in one of the accounts which continues.

23.2 The Partnership Letter merely states that each partner has full and unrestricted authority to sign for and bind the firm. There is no provision therein for the operation of the account by any one of the partners nor is there any direct reference to the mode of operation. The letter also has provision that the partners are jointly and severally responsible to the Bank for all the liabilities of the firm to the Bank.

Customer Identification Procedure

23.2 A Branches should strictly comply to the Customer Identification Procedure (CIP) by obtaining identification documents given below for every new customer without fail.

SlNo

Type of Accounts

Documents to be obtained

1 Individual A) For proof of identity (any one of the following for verification along with a copy): PAN Card Identity Card issued by Employer (subject to Bank’s satisfaction) Photo Credit Card Letter from a Gazetted Officer verifying the identity and attesting photograph and address

B) For proof of current address (any one of the following for verification along with a copy): Telephone bill Electricity bill Gas connection Receipt Ration card Bank account statement Letter from employer (subject to Bank’s satisfaction) Any document which provides current address information (subject to Bank’s satisfaction) In case of individual who does not have address proof in his/her name, a declaration from close relative with whom he/she resides and whose identity proof and address proof are obtained

C)For proof of identity as well as proof of address Aadhar Card Passport Voter’s Identity Card Driving Licence - If the address on the document submitted for the identity proof by the prospective

CHAPTER – 2 DEPOSITS GENERAL 11customer is same as that declared by him / her in the account opening form, the document may be accepted as a valid proof of both identity and address.- If the address on the document submitted for the identity proof by the prospective customer differs from the current address declared by him / her in the account opening form, a separate proof of address should be obtained.D) Recent photograph (passport size) Documents in 1.A, 1.B and 1.C to be obtained in case of Individual / proprietor / each joint account holder / Partner / Director/ Trustee/ HUF Member, each other authorized signatory, if any.

2 Proprietorship concerns

Following documents are to be obtained in addition to 1.A, 1.B, 1. C above: Proprietorship letter in Bank’s format Power of attorney if any granted by the Proprietor Telephone bill for verification with a copy

RBI has advised that in respect of accounts of sole proprietary concerns, the Customer Identification Procedure (CIP) shall, apart from the extant guidelines, include obtaining and verifying any two of the following documents for proof of name, address and activity of the concern before opening of such accounts:i. Registration Certificate in case of a registered concern;ii. Certificate/licence issued by the Municipal authorities under Shops & Establishment Act;iii. Sales & income-tax returns;iv. CST / VAT certificate;v. Certificate/registration document issued by Sales Tax/Service Tax/Professional

Tax authorities;vi. licence issued by any registering authority like Certificate of Practice issued by

the Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, etc.

- Any Registration/Licensing Document issued in the name of the Proprietary Concern by the Central Govt./State Govt. Authority/Dept..

- IEC (Importer/Exporter Code)issued to the Proprietary Concern by the Office of The Director General of Foreign Trade(DGFT).(Identity Document)

vii. Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated /acknowledged by the Income Tax Authorities.

viii. Utility bills such as electricity, water and landline telephone bills in the name of the proprietary concern.

Please note importantly that the above mentioned documents should be in the name of the proprietary concern(except (vii) above)Branches may also accept any registration / licensing documents issued in the name of the proprietary concerns by the Central Govt. or State Govt. Authority / Department. The IEC (Import Export Code) issued to the proprietary concerns by the office of Directorate General of Foreign Trade (DGFT) can also be accepted as an identity document for opening of Bank accounts of the proprietary concerns.

3 Partnership Firms

Following documents are to be obtained in addition to 1.A, 1.B, 1.C above: Registration certificate with a copy certified by the Partners (if registered) Partnership letter in Bank’s format Power of attorney, if any, granted by the firm for verification with a copy Telephone bill for verification with a copy

CHAPTER – 2 DEPOSITS GENERAL 124 Limited

Companies Following documents are to be obtained in addition to 1.A, 1.B, 1.C above: Certificate of incorporation with a copy certified by the Secretary/Director of the Company A copy of the Memorandum and Articles of Association (upto date) certified by the Secretary/Director of the Company Certificate of commencement of business with a copy certified by the Secretary/Director of the Company (for Public Limited Company) Board resolution for opening and operating the account certified by the Chairman of the meeting List of present Directors signed by the Chairman of the Company List of authorized signatories with their signatures attested by the Chairman of the Company Power of attorney if any granted by the Company PAN allotment letter for verification with a copy Telephone bill for verification with a copy

5 Hindu Undivided Family (HUF)

Following documents are to be obtained in addition to 1.A, 1.B, 1.C above: Declaration from Karta Joint Hindu Family letter signed by the Karta and all major co-parceners PAN allotment letter for verification with a copy Telephone bill for verification with a copy

6 Society/Association/ Club/Schools etc

Following documents are to be obtained in addition to 1.A, 1.B, 1.C above: Certificate of registration with a copy certified by the Chairman/Secretary (if registered) Memorandum of Association (where applicable) certified by the Chairman/Secretary Rules, regulations, bye laws certified by the Chairman/Secretary Committee resolution for opening and operating the account certified by the Chairman of the meeting A list of authorized signatories with their signatures attested by the Chairman/Secretary PAN allotment letter for verification with a copy Telephone bill for verification with a copy

7 Trusts .

Following documents are to be obtained in addition to 1.A, 1.B, 1.C above: Certificate of registration for verification with a copy certified by the Chairman (for Public Charitable Trust) Trust deed for verification with a copy certified by the Chairman Resolution for opening and operating the account signed by all the Trustees Any document listing the names of the trustees / settlers / beneficiaries A list of the names of trustees with their signatures attested by the Chairman PAN allotment letter for verification with a copy Telephone bill for verification with a copy

8 Non Resident Indian (NRI)

Following documents are to be obtained in addition to 1.A, 1.B, 1.C above: Passport for verification with a copy Work Permit / Permanent Residency / Green Card etc indicating the NRI’s residence status abroad for verification with a copy NRI declaration

9 Bank A/cs of Salaried Employees

Identity Card / Employer Letter / Employer Certificate should be obtained only from corporate and other entities of repute.Branches obtaining such documents should be aware of the competent authority designated by the concerned employer to issue such identity Card / Employer Letter /

CHAPTER – 2 DEPOSITS GENERAL 13Employer Certificate.Branches should, in addition to the above document , obtain at least one officially valid KYC document to establish the prospective customer’s identity proof and address proof.

Operations on the Account by Partners

24.1 Operations on an account of a firm are governed by the instructions given by all partners and recorded on the account opening form/card which should be authenticated under the initials of all the partners. Normally, an account in the name of partnership firm is proposed to be operated by any one of the partners. However, requests for the operation of a firm account in the modes other than this are not uncommon. Such modes can be any one of the following

(a) Jointly by any two or three or more of all the partners, or

(b) Jointly by any two or three or more of some (not all) of the partners, or

(c) Singly by one of some (not all) of the partners

24.2 Such accounts with restrictive instructions may be opened of firms having good reputation and of fair means and the instructions should clearly and unambiguously be recorded on the account opening form/ card duly authenticated by initials of all the partners

24.3 If in any such account to be operated upon by more than one partner e g , A, B and C are partners, and B authorises A to sign for him, such authority should not be accepted as sufficient justification for A in his own right and as B's attorney to operate on the account. This would have the effect of making operations single and not joint, apart from being objectionable on the ground that the authority given by B to A to sign for him is not given by all the partners of the firm

Mode of Signature on the Cheques of a Firm

25. The usual mode of signature and endorsement on the cheques of a firm would be for the partners to sign or endorse for and on behalf of the firm in their capacity as partners. Sometimes the partners desire to sign or endorse cheques in the name of the firm. "The signature in the name of the firm is equivalent to the signature by the person so signing in the names of all the persons liable as partners in the firm". It is the practice to allow signature or endorsement simply of the name of the firm only if the name of the firm is a combination of the names or surnames of the partners, e.g. A, B & Co or B Roy & Co, etc. If the firm is trading under an assumed or a trade name or an impersonal name e.g. Rainbow Trading Co., Hasmukh Engineering Co , the signature and the endorsement on cheques of the firm must be for and on behalf of the firm by the partners in their capacity as such.

Payment of a Cheque Drawn by a Firm

26.1 There appears to be no prima facie case to enquire each time a partner pays into his personal account a cheque which he alone has drawn on the firm's account, unless the surrounding circumstances warrant such an enquiry. It may be that the partner may merely be drawing his salary or his share in the profits or that the amount represents the refund of a loan that the partner may have advanced to the firm. Much will depend upon the facts of each case, the standing of' the firm and the partner and the amount of the cheque. If there is any room for suspicion, it would be prudent to make a judicious enquiry as to the validity of the transfer. The case demanding the greatest care occurs where, to meet the demands of the Bank to reduce the overdraft in his personal account, a partner tenders a cheque which he has just drawn on the partnership account. Enquiry in such an event is imperative

26.2 When cheques drawn on the firm's account by any one partner in favour of a third-party are lodged in the personal account of the partner or of any other partner, suitable enquiries should be made to ensure that the Bank acts without negligence. Cheques payable to a firm should not be accepted for the credit of the personal account of a partner without the sanction

CHAPTER – 2 DEPOSITS GENERAL 14of the other partners, nor for the credit of an account of an employee of the firm without the firm's permission.

Retirement or Admission of a Partner

27.1 Branches should observe the following procedure on receipt of notice of the retirement of a partner

(a) The date of receipt of notice of retirement should be entered specimen signature card and the account opening form, under the initials of an officer and the name of the retiring partner to struck from the a/c and also on the card.

(b) Notice of retirement should be acknowledged to the retiring partner.

(c) Cheques drawn by a retiring partner before his retirement may be paid if otherwise in order and if the account is an ordinary credit current account/savings bank account. It is advisable to obtain confirmation of the other partners.

27.2 The retirement or admission of a partner amounts to a change in the constitution of the firm. Accordingly, the existing account of the firm should be closed and a new account of the reconstituted firm opened (by requiring all the partners of the reconstituted firm to complete and sign a fresh set of account opening forms/ cards). The credit balance in the existing account of the firm should be transferred to the new account of the reconstituted firm by obtaining a cheque or a letter of authority signed by the remaining partners of the existing firm in terms of signing instructions in the account.

27.3 If an account of firm which is being reconstituted has a debit balance for any reason, endeavour should be made to get the account in order (in credit) before the change in the constitution of the account is given effect to in the books of the Bank in terms of the instructions in the foregoing paragraphs.

27.4 Pending opening of a new account, the remaining partners of the old firm may be allowed to operate on the existing account of the firm, if and only if, the account is merely an ordinary credit account. Arrangements should be made for payment of outstanding cheques drawn on the existing account, when a new account is opened.

Minors in Relation to a Partnership Firm

28. Under Section 30 of the Indian Partnership Act, 1932, a minor can, with the consent of all the partners for the time being, be admitted to the benefits of a partnership firm. At any time within six months of such a minor attaining majority or of his obtaining knowledge that he has been admitted to the benefits of the partnership, whichever date is later, such an erstwhile minor may give public notice that he has elected to become or not to become a partner in the firm and such notice will determine his position as regards the firm, provided that if he fails to give such a notice, he shall become a partner in the firm on the expiry of the said six months (Section 30 5) Branches should exercise care in opening accounts of partnership firms where minors have been admitted to the benefits of a partnership. The date of birth of the minor should be recorded in the books of the Bank. The minor is not required to sign the set of account opening forms nor can he be allowed to operate on the account. However his name with Date of Birth should be entered in a/c. opening form and partnership letter (L-448)

Objection by one of the Partners to Operations

29. On receipt of intimation from one (or more) of the partners to the effect that the Bank should not allow operations on the firm's account by the other partner(s), all operations on the account must be stopped. A joint letter must be addressed and sent to the firm and all partners, stating that having regard to the objection by one (or more) of them, the Bank is compelled to stop all operations on the account until all the partners jointly agree to a

CHAPTER – 2 DEPOSITS GENERAL 15particular mode of operation. If after receipt of such a letter, any partner raises some legal contentions, the Branch should make a reference to Head Office giving all the relevant facts and the copies of the relevant correspondence.

Accounts of Joint Hindu Families or Firms

30.1 Branches are authorised to open, in special cases, deposit accounts in the names of Joint Hindu Families or Firms of respectability and means as under :

i) Current accounts of business or trading character.

ii) All types of deposit accounts (including current accounts) of non-trading character. Under the Hindu Law, the joint family business is carried on by the senior male member of the family as Karta, or Manager who acts on behalf of the joint family.

30.2 The account of Joint Hindu Family should be operated upon by the Karta, who should complete the account opening form/card. In current accounts (of trading nature) of Joint Hindu Families, in addition, the Bank's printed Joint Hindu Family Letter (Form CD 115) should be completed and signed by the Karta and the major co-parceners; the names and dates of birth of minors should be mentioned in the space provided. In Mitakshara Law although a Female can be a member of the joint family, she is not a co-parcener in the sense that normally she does not have any right in the joint family property. However, signatures of the female members of the joint family should also to be taken on the Joint Hindu Family Letter. For all dealings with the Bank, the Karta is the person who acts on behalf of the joint family or firm.

30.3 In all deposit accounts of Joint Hindu Families (including current accounts) which are non-trading in nature, Branches need not obtain Joint Hindu Family Letter (Form No. CD 115). Instead, an unstamped Joint Hindu Family Letter as per specimen given in Appendix V should be obtained, in addition to the relevant account opening form/card. The Joint Hindu Family Letter should be completed in all respects and signed by the Karta and the major members in their individual capacity as also on behalf of their joint family. Particulars of the minor members of the Joint Hindu Family must be given in the Joint Hindu Family Letter.

Partnership of Joint Hindu Family with Outsider

31. The Karta of a Joint Hindu Family business acting on behalf of the family is competent to enter in to a partnership with a stranger. Joint Hindu Family Letter should, however, be obtained as usual. If the Karta dies, the partnership would normally be dissolved. Please also refer to paragraph 20.4

Accounts of Illiterate Persons

32. A person is said to be illiterate when he is unable to read and write. The account (other than Current Account) of such a person may be opened provided he calls on the Bank with a latest passport size photograph. Thereupon, his thumb impression or mark should be obtained on the account opening form/card in the presence of the Bank's official. Such thumb impressions or marks affixed by illiterate persons on instruments are equivalent to their signatures. Any withdrawal/repayment of deposit amount and/or interest by way of withdrawal form or otherwise should similarly be affixed with the thumb impression or mark of the depositor.

33. The Bank's Officer will then complete the account opening formalities by obtaining thumb impression or mark of the depositor on the card. It would suffice if the officer opening the account is satisfied that the photograph is that of the depositor who had come in person (These instructions also apply to illiterate account holders who give their photographs subsequent to their opening the account). To guard against the substitution of photographs, the same should be pasted on the account opening form and thumb impression obtained on the photographs in addition to thumb impression at the place of signature, and initialled by the

CHAPTER – 2 DEPOSITS GENERAL 16Bank's authorised official under date in red ink ball-point pen in token of having satisfied himself that the photograph is of the depositor himself. As a further precaution, the Branch round rubber stamp should be affixed halfway across the card and the photograph but care should be taken to see that the photograph is not mutilated/ disfigured.

34. At the time of withdrawal/repayment of deposit amount and/or interest, the account holder should affix his thumb impression or mark in the presence of the cancelling officer who should verify the identity of the person from the photograph stapled to account opening form/card prior to passing the instrument for payment

35. The Branch should impress upon such illiterate account holder the need of proper care and custody of pass book, deposit receipt etc given by the Bank in respect of his deposit account with the Bank.

Accounts of Visually Impaired Persons

36. Branches may open an account in the name of a visually impaired person as he is not legally incompetent to enter into a contract. He must call at the Branch in person and sign/put his thumb impression on the account opening form/card in the presence of the Bank's official and an approved witness known to both the Bank and the depositor.

36.1 Visually impaired persons be allowed to open an account with cheque book facility (cheques to be crossed at the time of issue) with an undertaking by the account holder that the cheque book be issued at his/her own risk. On the request of the account holder, the branch should issue the cheques in the name of the specified payee to make periodic payments for the retail loans, utility bills etc. At the time of issuing of cheque books, thumb impression of the account holder should be duly affixed and authenticated by the bank official.

36.2 For cash withdrawls, the visually impaired person should personally present himself/herself before the branch official who will facilitate filling up the cheque/withdrawal slips.

36.3 The facility of opening the lockers be also allowed to the visually impaired account holders without insisting on the joint account, as this may not be possible for those who are single or whose spouse is also visually impaired and children are minor.

36.4 ATM facility be also allowed on demand to the visually impaired customers as available to other customers. Branches should also ensure that the ATMs are accessible to other categories of persons with disabilities such as the wheel chair users. No Current Account should be opened in the name(s) of visually impaired person(s)

37. The Branch should impress upon the visually impaired account holder(s) the obvious risk involved and the precautions to be taken in the matter of care and custody of pass book/cheque book/deposit receipt given by the Bank in lieu of his deposits with the Bank. Normal precautions should be exercised by the Branch for protection and safety of the Bank.

Minors' Accounts

38.1 A minor is a person below the age of 18 years. However, if a minor is of European domicile or a guardian of his person or property has been appointed by the Court or the property of the minor is under Superintendence of the Court of Wards, he attains majority at the age of 21 years.

38.2 A minor is under legal incapacity to contract by himself and, therefore, a guardian recognised by law along can deal with the person and property of the minor. The term "guardian" includes a natural guardian or guardian appointed by the Court of Law. Discharge given by guardian, during the minority of the ward, cannot be challenged by the minor during minority or after attaining majority. Ordinarily, an account of a minor is opened and operated upon by the natural guardian of the minor or by the guardian appointed by the Court.


38.3 It is permissible to open any type of deposit account in the name of and/or to be operated upon by a minor within the framework of rules of business of the Bank as outlined hereunder - But no Current Account should be opened.

Natural Guardians

39.1 Hindus : The natural guardians of a Hindu minor in respect of the minor's person as well as the minor's property (excluding the minor's undivided interest in joint family property) according to the Hindu Minority and Guardianship Act, 1956 is

(a) in the case of a boy or an unmarried girl - the father and if the father is not alive, the mother,

(b) in the case of an illegitimate boy or illegitimate unmarried girl - the mother and if she is not alive, the father,

(c) in the case of a minor married girl - the husband.

Note The expressions "Father" and "Mother" do not include "a step father/step mother".

39.2 If both the father and mother are not alive, no one other than a person holding a guardianship certificate from a competent Court can act as a guardian of a minor .

39.3 Parsis, Christians and Europeans : Under systems of personal laws applicable to Parsis, Christians and Europeans, the father is the natural guardian. The mother will be the natural guardian only if the father is not alive. If both are not alive, a person holding a guardianship certificate from a competent Court can act as guardian.

Accounts of Mohammedan Minors

39.4 Normally, accounts of Mohammedan minors should be opened and operated upon by the father, who is the natural guardian of the minor and in no event can the mother act as natural guardian of the Mohammedan minor. Even after the father's death, the mother is not considered to be the natural guardian under Mohammedan (Sunnite) Law. However, Branches may open accounts in the names of Mohammedan minors to be operated upon by the mother on the following terms.

Accounts in the name of Mohammedan minor to be operated upon

i) By mother SINGLY Father alive

A Letter of Consent should be obtained duly signed by the father as per Specimen - Appendix VI after deleting the word 'natural' from 'natural guardian' while referring to mother who is only the guardian and not the natural guardian.

n) By mother SINGLY

Father alive, but his consent cannot be obtained

Stamped indemnity should be obtained from the mother as per Specimen-Appendix VII with acceptable sureties.

iii) By mother SINGLY

Father deceased

Stamped indemnity should be obtained from the mother as per specimen - Appendix VII with acceptable sureties. Account can be operated upon by the mother as the 'guardian' but not the 'natural guardian'.

iv) By father and mother EITHER OR SURVIVOR

A letter as per Specimen Appendix IX should be obtained duly signed by both father and mother after deleting the word 'natural' from 'natural guardian' while referring to mother who is only the guardian and not the natural guardian.

CHAPTER – 2 DEPOSITS GENERAL 18Note : There is no upper limit for acceptance of Deposits in Savings Bank and Term Deposit Accounts and the total amount repayable at the end of the stipulated term in respect of Recurring Deposit Accounts.

39.5 Branches may also open joint accounts in the name of a major and a Mohammedan minor to be operated upon by "Former or Survivor" where the word 'Former' refers to the major provided the major is related to the minor in the following capacities :

Where it is not possible to obtain the consent of the father (for reasons, such as the father not in India etc.) suitable Stamped Indemnity should be obtained from the major (mother or above mentioned other relatives) as per Specimen-Appendix VII with acceptable sureties. The balances in such joint accounts at any time should not exceed Rs. 25.000/- as far as Savings Bank Deposits are concerned. However, there is no upper limit for the balance/deposit amounts in Term Deposit Accounts and the total amount repayable at the end of the stipulated term in respect of Recurring Deposit Accounts.

39.6 Such joint accounts can also be opened if the minor is below 10 years of age, as in the case of minors other than Mohammedans.

39.7 All other instructions applicable to accounts of minors (other than Mohammedans) will also apply to the accounts of Mohammedan minors.

39.8 As mother is not considered as a 'natural guardian' under Mohammedan Law, the legend on the account opening cards as also on the cheques and withdrawal forms should be "A.B.C. (Minor) by his/her mother and guardian Mrs. X.Y.Z. ..........X.Y.Z."

39.9 In case the minor’s a/c is operated upon by natural guardian, the legend on the a/c opening cards and also on the cheques and withdrawal form should “ABC (minor) by his / her natural guardian”

Guardian Appointed by Court

40.1 A guardian appointed by Court is a person appointed by a competent Court of Law as guardian of the person and property of a minor. Such a guardian is appointed when the natural guardian of a minor is not alive or unable to discharge his duties as a guardian.

40.2 Before opening an account of a minor to be operated upon by the guardian appointed by the Court, the Court Order appointing the person as a guardian should be obtained and examined and its copy kept on the record of the Branch. It is essential that the guardian is properly introduced or identified.

Modes of Operations (a) Accounts Operated upon by Guardians

i) Father (being natural guardian)

ii) Mother

A letter of consent should be obtained duly signed by the father as per specimen -Appendix VI after deleting the word 'natural' from 'natural guardian' while referring to mother who is only the guardian and not the natural guardian.

iii) Major brother or major Sister

A letter of consent should be obtained duly signed by the father as per Specimen -Appendix VIII.

iv) Grandfather or grandmother

A letter of consent should be obtained duly signed by the father as per Specimen -Appendix VIII.


41.1 Normally, accounts of minors should be opened and operated upon by the natural guardian/guardian appointed by the Court.

41.2 An account in the name of a minor to be operated upon by the mother (in cases other than Mohammedans) as natural guardian even though the father is alive can be opened, in approved cases, for reasons, such as the father being away for long period etc., after obtaining a letter of consent (Specimen-Appendix VI) signed by the father.

41.3 It would also be in order to open and allow operation on the minor's account by the mother of the minor (in cases other than Mohammedans) without obtaining such letter of consent from the father, provided the Branch is fully satisfied about standing and respectability of the parties.

41.4 In terms of the Supreme Court ruling on Hindu Minority and Guardianship Act, opening and operations of Minor's account by mother, may be allowed in the absence of father without insisting upon the consent letter from the father. The Supreme Court lays down that the father is considered as absent if :

i) father and mother are separated or divorced,

ii) father has left the minor in the custody of the mother,

iii) father is not taking care of the mother and minor,

iv) it is agreed between the spouses that the mother shall take care of the minor.

If the circumstances listed above exist, the consent letter from the father should not be insisted and the mother should be allowed to open and operate the minor's account.

41.5 Branches may open deposit accounts of a minor to be operated upon by either the father or the mother (in cases other than Mohammedans) after obtaining a letter duly signed by both father and mother (Specimen-Appendix IX).

41.6 There is also no objection to opening a joint account in the names of two minors to be operated upon by the natural guardian of both the minors.

41.7 The mode of signature on the cards and withdrawal forms/cheques in these accounts should be "A B C (Minor) by his/her natural guardian/guardian appointed by Court X Y Z”.

(b) Accounts to be Operated upon by Minor Alone

42.1 As a minor has no capacity to contract, it is generally believed that any commercial transaction with him is risky. But where minor is a creditor, there is no risk in dealing with him because where a minor has received funds, his discharge is valid and effective. Banks normally allow a literate minor over the age of 10 years and above to operate a deposit account since it is only after such age that a minor would ordinarily be able to comprehend the nature of bank account (practices differ from Bank to Bank).

42.2 Accounts to be operated upon and/or the balance repayable to the minor alone can be opened, provided he is aged 10 years or more, with restrictions on maximum balances/repayments as shown below Care should be taken that he / she should receive the payment by himself.

(i) Saving Bank Accounts Balance not exceeding Rs 25.000/- at any time.

(ii) Recurring Deposit Accounts The total amount repayable at the end of the stipulated term without any upper limit.

CHAPTER – 2 DEPOSITS GENERAL 20(iii) Term Deposit Accounts The amount of deposit without any upper limit (to include Fixed/Short/ DBD/MIC,etc)

(c) Joint Accounts of Minors

43.1 Joint account of a minor of 10 years and more may be opened as under:

(i) Jointly with natural guardian.

The operational instructions may be obtained as -

(a) Either or Survivor, or

(b) Former or Survivor (The word "Former" may refer either to natural guardian or to minor)

(ii) Jointly with mother/major brother/major sister/grandfather or grandmother (paternal or maternal) who are not the natural guardians

The operational instructions should be "Former or Survivor" where "Former" shall refer to the mother/grandfather/grandmother/major brother or major sister, and "Survivor" to minor.

The balances in such joint accounts at any time should not exceed Rs 25,000/- in Savings Bank accounts. However, the balances in Recurring Deposit accounts and Term Deposit accounts are without any upper limit.

43.2 Branches may also open joint account of a minor with a major as described under (ii) above even if the minor is below 10 years of age. Since, in such cases, the minor is incapable of signing at the time of opening of the account, the account opening card would bear :

i) the name of major, his address and his specimen signature, n) the name of minor, his address but no specimen signature of the minor.

Specimen signature of the minor should be obtained only when he/she completes the age of 10. A suitable note should be taken for this purpose. Where Branches have opened such accounts and obtained the signature of the minor before completion of the age of 10, a fresh signature of the minor should be obtained when he/she completes the age of 10.

43.3 In the event of the death of the major account holder in such an account, where the minor continues to be below 10 years, the account can be operated upon by the natural guardian of the minor till the minor attains the age of 10 years and the account thereafter will be operated upon by the minor himself. Branches should obtain the specimen signature of the natural guardian of the minor on receipt of notice of death of the major joint account holder. The Branch may or may not receive a formal notice of the major's death, it is sufficient if there is an announcement of the death of the account holder in newspapers, such an announcement is deemed to be proper notice of death. When the minor attains the age of 10 years, Branches should carefully note to stop all withdrawals by the natural guardian, as the minor is considered capable of operating the said account himself.

44. It is not safe to open a joint account in the names of two minors to be operated upon by either of them as one of the minors can, on attaining majority, question the operations by the other minor. However, joint accounts in the names of minors who are of the age of 10 years & above may be opened to be operated upon by them jointly subject to maximum balance restrictions referred above.

44.A Branches may accept without any upper limit, deposits in Savings Bank Accounts of minors operated upon by :

CHAPTER – 2 DEPOSITS GENERAL 21(i) the natural guardian, father

(ii) the Guardian appointed by the Court

(iii) the mother as natural guardian (in cases other than Mohammedan Minors)

(iv) the mother as Guardian (and not natural guardian) of a Mohammedan minor

44.B. The upper limit of Rs 25,000/- for balances in Savings Bank Accounts of minor shall be applicable in the following cases only:

i) Account of a minor operated by self, ii) Joint account of two minors operated by them jointly, iii) Joint account of a minor with his natural guardians, iv) Joint accounts of minor with his mother/major brother/major sister/grandfather/grandmother (Paternal & Maternal)

Management of Minors' accounts

45.1. While opening any type of deposit account in which a minor is a party, birth date of minor and date of his attaining majority must be noted prominently in red ink ball-point pen on the account opening form/ card, pass book. The date of birth should be verified from school/birth certificate from the Municipality or Grampanchayat and a note of proof made on the form/card. A copy of such certificate should be kept on record.

45.2. Branches from rural and semi urban areas facing difficulty in obtaining any of the above certificates may accept a declaration from the minor's parents as proof of the date of birth of the minor if the guardians are unable to produce any of these certificates.

45.3. The declaration should be obtained in the form- as per Specimen Appendix X when both of the parents of the minor are alive, the declaration from the surviving parent should, however, be obtained in form as per Specimen-Appendix XI if one of the parents is deceased. The declaration in both the cases should be unstamped.

45.4. A constant watch has to be kept on the accounts of minors and their attaining majority particularly in accounts which are operated upon by the guardians, because if the erstwhile guardian makes any withdrawals from a minor's account after the minor has attained majority, the withdrawals may be questioned by the erstwhile minor. To eliminate this risk and generally to safeguard the Bank's interest, it is necessary to maintain a record of the dates of minors' attaining majority. In the present computer system, a report can be generated by invoking menu option, a list of accounts where minors are attaining majority. The report should be periodically taken.

45.5. If a withdrawal form/cheque signed by natural guardian/guardian appointed by Court is presented for payment after the date on which the minor has become major, the erstwhile minor must be contacted and his instructions sought. If he cannot be contacted, the withdrawal form/cheque should be returned with the answer "Mr/Miss …………………………………….(the erstwhile minors name) has since attained majority".

Procedure after Minor Attains Majority

46.1. When a minor attains majority, the guardian ceases to be the guardian and the account ceases to be that of a minor. The payment from the account should be made to the erstwhile minor provided the Branch is satisfied about his identity.

46.2. When the account is operated upon by the guardian on behalf of the minor, who has attained majority, a Balance Confirmation Letter duly signed by the erstwhile minor with his signature duly verified by the guardian should be obtained. The signature of the erstwhile

CHAPTER – 2 DEPOSITS GENERAL 22minor should be obtained on the form/card and it should be verified by natural guardian/guardian appointed by Court. Having done this, it is not necessary to close the existing account and to open a new account, but the note made in the ledger account and the account opening form/card to indicate that it is a minor's account, should be cancelled. Thereafter, the account should be operated upon only by the erstwhile minor.

46.3 When the account is operated upon by the minor himself, after attaining majority, the erstwhile minor should be asked to sign a Balance Confirmation Letter which should be kept on record after making a note in the relative card/ledger account.

46.4 Where the account is operated by two minors jointly, upon one of them attaining majority, the account should be closed after obtaining Balance Confirmation Letter duly signed by both the account holders with the withdrawal form for the final balance signed by the two jointly. The account holders may then open new accounts according to the Bank's rules.

46.5 Where, in a joint account of a minor with natural guardian father or mother/grandfather or grandmother (paternal or maternal), brother or sister (major), the minor has attained majority, a Balance Confirmation Letter duly signed by the account holders should be obtained. Note of the Balance Confirmation Letter should be made in the account opening form/card. The birth date of erstwhile minor should be cancelled and authenticated under initials of the concerned officer.

46.6 Where, in a joint account of two minors operated by the natural guardian of both, one of the minors has attained majority, the account should be closed after obtaining the Balance Confirmation Letter duly signed by both the account holders with the withdrawal form/cheque for the final balance signed by the erstwhile minor and the natural guardian on behalf of the other minor A fresh account(s) may be opened as they may wish.

46.7 In Term Deposit accounts such as Fixed/Short Deposits, Monthly Income Certificates, Double Benefit Deposits, Recurring Deposits, where the account is in the name of a minor to be operated upon by the natural guardian or jointly in the name of a minor and his natural guardian, Branches should exercise care at the time of repayment of the amounts and ensure that the minor has not attained majority, and if he has become major, his discharge is obtained, in addition to the natural guardian's discharge, where necessary, for repayment of the amount.

Accounts of Limited Companies

47. A Limited Company may be public or private incorporated under the Companies Act.

48. When the Registrar of Companies issues a Certificate of Incorporation, a Company comes into legal existence.

49. Before opening an account of a limited company the following requirements must be complied with :

(a) The original Certificate of Incorporation should be inspected and a copy thereof (certified true by the Secretary) obtained for the Bank's record (This requirement may not be insisted upon for long established and well-known companies).

(b) The original Certificate of Commencement of Business should be inspected in the case of a public company A copy certified true by the Secretary of the Company should be obtained for the Bank's record (The Certificate may not be obtained in the case of long established and well-known companies) Certificate of Commencement of Business is not required in the case of a Private Limited Company or a Company Limited by Guarantee.

CHAPTER – 2 DEPOSITS GENERAL 23(c) A copy of Memorandum and Articles of Association duly certified as true and up to date

by the Secretary of the Company should be obtained and kept on record. The Memorandum and Articles of Association should be studied and any special restrictions/requirements in regard to the dealing of the Company with the Bank should be noted and acted upon.

(d) A copy of the Board Resolution authorising opening of the account duly certified true by the Chairman of the meeting at which the Resolution is passed should be obtained (Specimen-Appendix XII). There should be a specific mention in the Resolution about the type of deposit account to be opened. A Resolution obtained incorporating opening of different categories of deposit accounts, if on record, may suffice in future to open any type of deposit account covered by the Resolution. No fresh Resolution need be asked for in such cases but a copy of the Resolution on record should be kept with the account opening form/card relating to the new account with a proper noting as to where the original Resolution is filed. It should be ensured that the instructions regarding operations on the account contained in the Resolution are in conformity with the relative provisions in the Company's Memorandum and Articles of Association.

(e) A copy of the latest audited balance sheet and profit and loss account may be obtained in the case of a public limited company.

(f) A list of the present Directors signed by the Chairman may be obtained.

49.A. Sometimes, while opening an account, a company is unable to furnish Board Resolution alongwith other documents such as, Certificate of Incorporation, Memorandum and Articles of Association etc. In such cases, current account in a Limited Company's name can be opened on the basis of omnibus resolution passed by the company's board of directors, empowering its Chief Executives etc., to open accounts at banks. Such resolution should have been passed at a meeting of board of directors and should not be 'Circular Resolution'. It is advisable that the resolution mentions account opening officials by designation rather than by names. The power delegated through the resolution or by grant of a power of attorney to sign on behalf of the company, should not be confined to cheques only, but should extend to other orders, whether the account is in credit or debit. It should even extend to the bills to be accepted on behalf of the company.

49.B. Occasions may arise when a Company is required to open a Current Account at places, other than its head quarters, where the Company has Branches/Offices. Under the circumstances, the Company may not be able to produce a Board Resolution for opening an Account at such a place with any Bank until after the Board Meeting. In such cases, a Current Account in the name of the Limited Company can be opened on the basis of an Omnibus resolution passed by the Company's Board of Directors empowering it's Chief Executives etc. to open accounts at Banks. However, all other documents should also be obtained at each Bank Branch maintaining such accounts. It will be advisable to mention account opening officials by designations rather than by names in the resolution. It should not be a 'Circular Resolution' but passed at a Meeting of the Board of Directors. A Draft of the intended resolution for the limited use of Companies in need of opening an operative account at any of the Bank's outstation Branches for certain limited purpose, like management of a site office etc. is given in Appendix XXII.

Completion of Account Opening Form

50.1 Branches are sometimes requested to send a set of account opening forms/cards for being filled in at the company's office. This facility should be restricted only to companies of long standing and well-known to the Bank. In all such cases where the forms have been sent for completion to the Company's office, specimen signatures of the officers of the company who are authorised to operate on the account should be attested by the Chairman of the company, whose signature must be known to the Bank and must be carefully verified. Branches are cautioned against indiscriminate extension of this facility and are advised to

CHAPTER – 2 DEPOSITS GENERAL 24depute a responsible member of the staff to have the forms/cards duly completed by the company's officers in his presence.

50.2 In the case of companies when none of the directors is known to the Bank, it would be worthwhile to make independent market enquiries on the standing of the company/its directors and also to take a search in the company's records at the office of the Registrar of Companies.

50.3 Issuance of cheque books to Limited Companies (Public and Private Ltd. Cos.) Branches should issue 'order' cheque leaf books only, to the corporate clients, unless a request to the contrary is made in writing.

Change of Directors - Authority to Operate

51. In the event of any changes in the Directors authorised to operate on the account of the Company, a copy of the relative Board Resolution certified true by the Chairman of the meeting at which the Resolution was passed should be obtained for record. (Branches should also obtain fresh specimen signature form/card duly signed by all authorised signatories including the new Directors authorised to operate the account, with their signatures verified by the Chairman).

Form of Signature on Cheques as Drawer

52. The common form of signature on cheques drawn by a limited company in terms of Section 147(1)(C) of Companies Act, 1956, is

For A.B. & Co. Ltd. "X.Y.Z." Director/Secretary

The above illustration shows the name of the company - the essential thing -as required by the Companies Act, 1956, followed by the signature of the person who wrote or impressed it, with the designation to indicate that it was done under authority and on behalf of the company. It is not the practice of the Bank to accept an endorsement on a cheque, let alone any drawing of a cheque, in the form of mere name of the company only, as there is nothing to show that it was written on behalf of the company by some one in authority.

Safeguards against Conversion of Cheques

53.1 Branches should treat with care all cheques drawn by a limited company which are presented for collection in an account other than that of the named payee. Branches should not collect without stringent enquiry a cheque drawn by a limited company payable to a third-party and apparently endorsed by the payee for the private account of a director or employee of the company which drew the cheque.

53.2 PROPER PLACE FOR THE DEPOSIT OF CHEQUE PAYABLE TO A LIMITED COMPANY IS THE COMPANY'S ACCOUNT ANY OTHER METHOD OF DEALING WITH THE CHEQUE PUTS THE BANK ON ENQUIRY. Branches should not collect a cheque payable to a limited company for the personal account of any director, official or employee of the payee company without enquiries (preferably obtaining from the company a confirmation of the explanation afforded by the presenter of the cheque). Branches should not collect a cheque payable to a limited company for the account of any other party without proper enquiry, the extent of which must depend upon the circumstances of the case. Particular care would be necessary when the customer is short of funds or some connection with the payee company is suspected.

Importance of the Registered Office of a Company

CHAPTER – 2 DEPOSITS GENERAL 2554. To the Bank, the registered office of a company is of importance as the address where all notices and documents may be served upon the company. A document/legal notice to be properly served on the company or an officer thereof must be sent to the company or the officer at the registered office of the company by post under certificate of posting or by registered post or by leaving it at the registered office of the company (Section 51 of the Companies Act, 1956). Statements of account, paid cheques and genera! correspondence relating to day-to-day business of the company may be sent to the respective offices of the company by mutual arrangements.

Winding Up of a Limited Company by Court's Order

55. A limited company may be wound up by the Court in which case the winding up order is served on the Bank. No cheques drawn on the account should be paid even though they were drawn prior to the date of receipt of Court's winding up order.

56. Appointment of liquidator: The liquidator(s) who may be appointed for the purpose is the only person(s) who will deal with the account (Refer paragraph 77.1 to 77.4).

Accounts of Clubs, Schools, Societies (including Co-operatives), Associations, Committees etc.

57. Account may be opened in the name of a club, school, society (including co-operative society), association, committee, etc., which is registered or incorporated under the Societies Registration Act or the Companies Act, 1956 or Co-operative Societies Act.

58. The activities of these bodies are governed by their rules, regulations, bye-laws etc., it should be ensured that bank account is opened and operational instructions are in conformity with the rules, regulations, etc. Before opening an account the following documents should be obtained :

(a) Certified true copy of the rules, regulations, bye-laws (as the case may be).

(b) Certified true copy of Memorandum of Association, where applicable.

(c) Certificate of Registration or Incorporation in original (which may be returned after inspection). A certified true copy of the Certificate should be obtained for the Bank's record.

Note : (a), (b) and (c) should be certified by the Chairman/Secretary.

(d) A certified true copy of the resolution (certified by the Chairman of the Meeting of Board of Directors or Managing Committee at which it was passed) authorising opening of an account with the Bank and authorising certain office-bearers in accordance with the rules and bye-laws of the body to sign cheques and operate the account etc. (Specimen-Appendix XII or XIII as may be applicable). Type of deposit account to be opened should be specifically brought out in the resolution. If the resolution on record provides clearly for opening of accounts of different categories of deposits, no separate resolution for each type of deposit account to be opened is necessary, but a copy of the resolution on record should be kept with the account opening form/card relating to the new account with a proper noting as to where the copy of original resolution is filed.

(e) A copy of the latest balance sheet in the case of Co-operative Societies, if available.

59. In the case of account of Co-operative Society, in some States, the Co-operative Societies Acts do not permit a society to open accounts with banks other than a Co-operative bank without the permission of the Registrar of Co-operative Societies. For the sake of good

CHAPTER – 2 DEPOSITS GENERAL 26order, the Letter granting permission to open account with the Bank should be inspected and necessary action taken; a copy of the Letter may be kept on record.

60. In the event of subsequent changes in the Board of Directors or Management or the Managing Committee, a copy of the resolution certified true by the Chairman should be obtained by the Bank for its record (Fresh specimen signature cards or slips signed by the new Directors or Members of the Managing Committee with their signatures verified by the Chairman should also be obtained).

61. Sometimes the Bank is approached to open accounts of clubs, schools, societies, associations or committees which are unregistered. Such unregistered bodies have no legal entity and cannot be sued in their own names. The Bank may be put to difficulties in the case of internal disputes arising amongst the members of such bodies Accounts of unregistered clubs, schools, societies, associations, etc, should be opened in their names provided Manager is thoroughly satisfied about the objects and the constitution of such bodies and the respectability and standing of the office-bearers. The accounts of unregistered associations should not be allowed to be overdrawn even temporarily.

Precautions

62. Cheques payable to clubs, schools, societies, associations etc, either in their own names or in the name(s) of office-bearers in their fiduciary capacity should not be collected in the private accounts of office bearers or other employees of those bodies. Similarly, cheques drawn on the account of the club, school, society or association payable to third-parties should not be collected in the private accounts of the office bearers or employees of the club, school, society or association except after stringent inquiry.

Accounts of Trusts

63. By an instrument of Trust Deed, an estate is placed in the hands of the Trustees to whom the estate is entrusted in order that they may deal with it in accordance with the provisions of the Trust Deed. A Trust may be Public Charitable Trust or Private Trust (for the benefit of private individuals).

64. Branches may open any type of deposit account or safe custody account in the name of a Trust by adopting the following procedure and precautions strictly, but, in dealing with such an account care must be taken to see that the Bank is not knowingly a party to a breach of trust.

Examination of the Instrument of Trust Deed

65. Before opening a trust account, the original Trust Deed (Instrument/Document creating the Trust) must be obtained for examination. Such instrument may be a Trust Deed or scheme framed by a competent authority such as a Charity Commissioner or by an order of a Court. There are some charitable institutions which are for promotion of education or for providing medical aid or for furtherance of religious activities etc, which have in addition to the Trust Deeds their own rules and bye-laws or constitutions for the administration of the trust and the powers of the trustees, in these cases such rules and bye-laws or constitutions should be treated as part of the Instrument of Trust. In what follows the word "instrument" is used as a general term meaning any document creating the trust and defining the powers of trustees. The Instrument of trust should be carefully examined to get answers to the following questions and to ascertain as well the legal obligations applicable to the conduct of the account :

(a) Whether the trust is a public charitable trust or a private trust.

(b) What is the minimum number of trustees provided in the Instrument.

(c) Whether the Instrument contains any provision authorising the trustees to open a bank account of the type desired to be opened.


(d) Whether the Instrument contains any provision authorising the operation of such account by a number of trustees which is smaller than their full or maximum number.

(e) Whether the Instrument contains any provision authorising the trustees to delegate their powers to some of them.

(f) Whether there are any provisions in the Trust Deed which place onerous responsibilities on the Bank regarding the operation of the account.

66. The opening and operation of the account depend upon the answers to the above questions, as indicated below :

(a) If the trust is a public charitable trust, enquiries must be made whether it is registered with the Charity Commissioner or such other competent authority In most (though not all) of the States, there are Public Trusts Acts under which any public charitable trust is compulsorily required to be registered with the Charity Commissioner or such other authority appointed under the Act, and a certificate of registration is issued to the trustees. The original of such certificate of registration should be called for, examined and a copy taken on record. There can be no certificate of registration in respect of a wholly private trust i.e. a trust with no charitable objects, but made solely for the benefit of private individuals, mostly family members of the settler.

(b) The trust should have the prescribed minimum number of trustees as provided in the Instrument.

(c) If the Instrument contains any provision authorising the trustees to open a bank account, any restriction or condition implied by such provision regarding the operation of the account must be strictly complied with by the trustees.

(d) If the instrument authorises the operation of a bank account by a number of trustees less than their full number, the operation must be allowed by the specific number mentioned in the Instrument.

(e) If there is a provision in the Instrument regarding the operation of a bank account by some only out of all the trustees, it is NOT necessary to see whether there is a general provision authorising the trustees to delegate their functions and powers to some of them. If, however, there is nothing in the Instrument regarding the operation of bank accounts, the provision authorising delegation to some of the trustees becomes relevant. If, for instance, it is provided that there shall be five trustees and that they can delegate their powers to any two of them, the operation of the account can be permitted by any two of them.

(f) The operation of the account by only one of several trustees can be permitted only if the Instrument specifically and in clear terms authorises such operation.

(g) If the Instrument places any restrictions on the operation of the bank account, these restrictions should be strictly complied with. For instance, the Instrument may provide that the account should be operated by one particular trustee (sometimes called the "Managing Trustee") jointly with any two of the rest of them, or it may provide that the account should be operated upon by any one of a particular group of the trustees jointly with any one of the remaining trustees. The latter type of provision is sometimes found in Provident Fund Trusts. The operation must be allowed accordingly.

Documents to be Obtained

67. After examining the Instrument and determining how the operation on the account is to be allowed, the following documents should be obtained :

CHAPTER – 2 DEPOSITS GENERAL 28(a) The account opening form/card should be signed by all the trustees, whatever may be the

mode of operation.

(b) Certificate of registration under the local Public Trusts Act, if the trust is a public charitable trust, should be examined and a copy taken for record.

(c) The relevant extracts from the Instrument pertaining to the number of trustees, operation of bank accounts and/or power of delegation should be entered in a register in which copies or extracts of powers of attorney, particulars of death certificates, copies of letters of administration, etc., are maintained (Form OD 127A). These particulars should be checked and initialed by an officer. (It is not necessary to have a copy of the whole Instrument on the Bank's record). The date and serial number under which the record is maintained in the register should be noted on the account opening form/card and at the head of the ledger account.

(d) A resolution in the form provided in Appendix XIV or XV or XVI as may be applicable, signed by ALL the trustees (whatever be the mode of operation) should be obtained. If any change takes place in the board of trustees, a fresh resolution signed by all the new trustees should be obtained.

(e) The confirmation of the balance in the account signed by all the trustees (whatever be the mode of operation) should be obtained every six months.

(f) Periodical statements of accounts should be sent under a covering letter addressed to all the trustees (whatever be the mode of operation).

When Trust Deed is Silent about Operation of a Bank Account

68.1 When the Trust Deed/Instrument does not contain any provision about the operation of a bank account or authorising the trustees to delegate powers to some of them, the account can be opened, but should be operated upon by ALL THE TRUSTEES JOINTLY.

68.2 Operations proposed by only some out of all the trustees : If, however, in such cases the trustees request the Branch to allow the operations by only some out of all the trustees, the matter must be referred to Head Office with a copy of the Instrument and a status report on the standing, respectability and such other facts about the trustees and also about the trust; the Branch should also state whether looking to such factors the Bank would or would not take undue risk by allowing the operation of the account by lesser number of trustees - that is to say, whether there are any chances of the trustees committing breach of trust. The operation on the account by some of the trustees and not all of them may be permitted in spite of there being no specific provision in the Instrument; but in such a case the number of trustees operating must be at least two and not one. If possible, an endeavour should be made to persuade the trustees to agree to operate the account by a majority in number of the trustees.

Indemnity

69. If Head Office permits to open the account and allows operation by lesser number of trustees, in addition to the documents mentioned above, a letter of indemnity (Specimen-Appendix XVII) signed by ALL the trustees should be obtained. The letter of indemnity is necessary only when there is no provision in the Instrument authorising the trustees to delegate their powers to some of them AND the trustees nevertheless desire to operate the account not by all of them but by some of them If the operation is either in accordance with the authority given in the Instrument or is by all the trustees jointly, no indemnity is necessary.


Term Deposit and Safe Custody Accounts of a Trust

70. In a current or savings bank account, the trustees generally deposit the income of the trust funds. Term Deposit and Safe Custody accounts on the other hand relate to the capital of the trust funds. The following ADDITIONAL POINTS are, therefore, to be considered while opening a Term Deposit or Safe Custody account in the name of a trust :

(a) Sometimes the Instrument contains a provision authorising the operation of "a bank account" generally by some only of all the trustees. THE WORDS "A BANK ACCOUNT" CANNOT NORMALLY BE CONSTRUED TO INCLUDE A TERM DEPOSIT ACCOUNT OR A SAFE CUSTODY ACCOUNT. There must be either a specific mention of the Term Deposit account or the Safe Custody account and specific mode of operation prescribed in the Instrument, or there must be a general descriptive provision for such an account, for instance, stating that the trustees shall have power to place the trust moneys in Term Deposit with any bank or that they will have power to place the investments of the funds in Safe Custody with any bank AND that any two or three of them are authorised to deal with such Term Deposits or to withdraw the investments or to instruct the bank to sell or otherwise deal with them.

(b) In the absence of such a provision as is referred to in (a) above or of a power of delegation referred to in paragraph 66 above, the account should be operated by all the trustees jointly. The request for the operation by some only of all the trustees should be entertained more sparingly in the case of these accounts than in the case of Current or Savings Bank accounts. If the Branch is inclined to accommodate the trustees, a reference should be made to Head Office before opening the account. If Head Office agrees to allow operations by some of the trustees, an indemnity should be taken in addition to other usual documents referred above. THE FORM OF INDEMNITY WILL BE FURNISHED BY HEAD OFFICE IN EACH CASE SEPARATELY.

General Principles and Precautions

71.1 With regard to trust accounts of any nature, the principle of treatment by a banker is that he must not be knowingly a party to a breach of trust, otherwise he would be liable or accountable to the beneficiaries or any person interested in the trust. In other words, if an account holder places money that a banker knows is trust money in his charge, the banker must not allow the account holder to draw out the money for a purpose which the banker knows or has sufficient reasons to believe, to be inconsistent with the account holder's duties as a trustee. On the one hand, the banker must not act upon mere suspicion, on the other hand, he must not ignore a circumstance which shows that the moneys are being drawn for a purpose not consistent with the duties of a trustee. It is because of such onerous nature of the banker's liability regarding a trust account that elaborate procedure is required to be followed.

71.2 The following are some of the precautions which arise from the abovementioned general principles :

(a) A cheque payable to a trust account should not be collected for the private account of a trustee. In no case should a trust account cheque be credited into the overdrawn private account of a trustee himself.

(b) Branches should exercise caution in paying cheques drawn on trust accounts and ensure that such payment does not contravene the provisions of the trust deed.

(c) Proceeds of the investments of the trust or Term Deposits should not be allowed to be collected or paid into private account of a trustee.

CHAPTER – 2 DEPOSITS GENERAL 30(d) Trust accounts should not normally be allowed to be overdrawn Any request by trustees or loan or overdraft arrangements should be referred to Head Office for instructions, even when the amount is within the sanctioning power of the Manager.

(e) The trustees cannot appoint attorneys where, by so doing, they delegate the exercise of their discretion except in terms of the clearest authority to do so under the Instrument.

(f) Any one of the trustees may stop payment of a cheque whether he is the signatory of the cheque concerned or not. If the trustees desire to remove the stop payment instructions it is advisable to have them issued a new cheque, alternatively, instructions cancelling stop payment may be accepted, if the letter is signed in the same manner as cheques drawn on the account (Also refer Chapter on Current/Savings Bank Accounts-General under "Stop Payment of Cheques").

Accounts of Executors and Administrators

72.1 The Executor or Administrator, as the case may be, of a deceased person is his legal representative for all purposes, and all the property of the deceased person vests in him as such.

72.2 An Executor is a person named in the Will and derives his title immediately upon the testator's death for the purpose of administration of the deceased's property. Before acting as Executor and exercising powers given to him under the Will, he should obtain Probate from Court though there is nothing in the law to prevent him acting as Executor under certain circumstances.

72.3 But, an administrator is the legal representative of a person who has died intestate and derives his title wholly from the Court as per Letters of Administration granted in his favour by the Court.

72.4 The Executor or Administrator cannot usually delegate power to third-parties. Any power of attorney or an authority given to third-parties to operate on the account of the estate must not be accepted without the prior permission of Head Office.

Procedure to Open Accounts

73.1 The Probate or Letters of Administration must be produced to the Bank before an account can be opened in the names of Executors or Administrators (A Will for which a probate has not been obtained should not be acted upon). Usually the original grant or a copy certified by the Court should be produced for inspection and registration. If such original or certified copy is not produced but only a plain copy is produced, the registration thereof should be declined and the original or a copy certified as such by the Court should be requested. The Executors or Administrators should be identified before an account is opened in their names. The particulars of Probate or Letters of Administration produced should be registered, i.e entered in a Register in which copies or extracts from powers of attorney, particulars from death certificates, letters of administration, trust deeds, etc , are maintained (Form OD 127A). The Register should contain such particulars of the Probate or Letters of Administration as :

(a) Date of the Will, if any

(b) Date when the Probate or Letters of Administration were granted

(c) Name of Court which issued the grant

(d) Date when exhibited to the Bank and by whom

(e) Names of Executors or Administrators

CHAPTER – 2 DEPOSITS GENERAL 31(f) Gross value of the estate

(g) Powers of Executors or Administrators

(h) A brief extract of the contents of the Probate or Letters of Administration and the accounts of business of the deceased with the Bank, if any

73.2 The entry in the Register should be checked and initialled by the Manager (or at larger Branches by the Deputy Manager/Deputy Chief Manager). The Register should be indexed alphabetically. The date and the serial number in which the record is maintained in the Register should be noted on the account opening form/card and at the head of the ledger account under the initials of an officer.

73.3 The accounts of the Executors or Administrators should be opened in the following style "A, B and C - Executors (or Administrators) of D".

Precautions

74. (a) Account opening form/card should be signed by ALL the proving Executors or by ALL the Administrators, if there are more than one Executor or Administrator.

(b) Clear instructions for operation of the account signed by all Executors or Administrators should be obtained.

(c) Care must be taken to see that the Bank is not involved in any misapplication of the funds of the estate by the Executor or the Administrator. The Bank cannot examine every payment out of the account but care should be taken where necessary (depending on the surrounding circumstances concerning any transaction suggesting misapplication of funds). It would be unwise to collect a cheque payable to the Executor or Administrator as such for the private account of the Executor or Administrator. If the Bank were pressing for a reduction in the private indebtedness of the Executor or Administrator, it would be dangerous to accept for the credit of his private account a cheque drawn by him on the estate account payable to self or to any third-party.

Operation by Any One Executor or Administrator where Permissible

75. In the absence of any direction to the contrary in the Probate or Letters of Administration, any one of the Executors or Administrators can operate on the account without written authority from the others, as the co-executors or administrators are regarded in law as one person. However, it is prudent to obtain their precise instructions regarding operation on the account.

Accounts of Provident Funds

76.1 Accounts may be opened in the names of properly constituted Provident Funds. The trust deed of Provident Fund should be examined carefully to ensure that there are no onerous provisions in it. The Rules of the Provident Fund should also be read carefully to see that they do not place any onerous responsibility on the Bank.

76.2 The Provident Fund must have recognition under the Income Tax Act, 1961. The trustees should be well-known and respectable persons of standing.

76.3 All instructions regarding opening of trust accounts and precautions thereto shall also apply to these accounts (Refer paragraphs 63 to 71).

76.3.A. Savings Bank Accounts in the name of Employees Provident Fund organisations/Gratuity Funds of Public/Private Limited Companies can be opened provided that :

CHAPTER – 2 DEPOSITS GENERAL 32i) The fund is recognised Provident/Gratuity Fund within the meaning of chapter IX A of Income Tax Act 1922,

ii) The entire Income of the fund is exempted from Income Tax and

iii) The funds do not fall within the categories of bodies mentioned in clause 3(i) of RBI direction dated 27-12-85 reproduced below "No bank shall open a Savings Deposit Account in the name of Government Departments/bodies depending upon budgetary allocations for performance of their functions/Municipal Corporations/Municipal Committees/Panchayat Samities/State Housing Boards/Water/Sewerage/Drainage/Boards, State Text Book Publishing Corporation/Societies/Metropolitan Development Authority/State/District Level Housing, Co-op Society etc or any trading or business concern whether such concern is a proprietary or a partnership firm / or a company or an association.

76.4 The following documents together with the usual account opening form/card should be obtained : (a) The original trust deed (which may be returned after its registration in the Bank's record). A copy should be obtained for Bank's record.

(b) A copy of the rules of the Provident Fund.

(c) A copy of the resolution, certified true by the Chairman of the meeting at which it was passed by the Board of Trustees authorising opening of an account with the Bank and conferring authority on the trustees of the Fund, who, in accordance with the rules of the Fund are authorised to sign cheques etc.

Accounts of Liquidators

77.1 A Liquidator under a VOLUNTARY WINDING UP of a Company may open an account with the Bank subject to the consent of the Committee of Inspection, if any, and need only produce a copy of the resolution (certified by the Chairman of the meeting at which the resolution of such winding up was passed) of the creditors or members of the Company appointing him The Liquidator's account should be opened in the following style:

"The Liquidation Account of ………. Company Ltd" or "(Company Pvt. Ltd.)"

77.2. Liquidators cannot delegate their powers to third-parties. Where more Liquidators than one are appointed, they may not authorise less than two of their number to sign generally unless empowered to do so at the time of their appointment, although they may all authorise one of their members or a third-parties to sign a particular document.

77.3 In case of account of Official Liquidator who is the Liquidator of a Company which is being WOUND UP UNDER THE SUPERVISION OF THE COURT, "Public Account of India" in the Reserve Bank of India must be used (Section 552 of the Companies Act, 1956).

77.4 Neither the Official Liquidator nor any other Liquidator of a Company shall pay any moneys received by him in his capacity as such into any private banking account (Section 554 of the Companies Act, 1956).

Accounts of Other Banks

78.1 Branches may, at their discretion, open Current Accounts only of other scheduled banks including Regional Rural Banks, in case of doubt, they should refer to Head Office. No account of a non-scheduled bank may be opened without reference to Head Office.

CHAPTER – 2 DEPOSITS GENERAL 3378.2 The Bank is readily prepared to open current accounts of good foreign banks. But, such requests to open current accounts should ordinarily be referred to Head Office. Good business may result from such accounts and from acting as agent for foreign banks. In opening and maintaining current accounts of foreign banks, the necessary Exchange Control permission should be obtained and regulation of Reserve Bank of India must be observed.

Accounts of State Financial Corporations

79.1 Accounts of State Financial Corporations may be opened. Before opening an account, the following documents should be obtained.

(a) a copy of the relevant Act of Legislature,

(b) a copy of the Bye-laws and

(c) a certified copy of the resolution regarding opening and operation of the account It should be seen that the terms of the resolution are in agreement with the relative provisions in the Act and Bye-laws.

79.2 It should be ensured at all times that the accounts are conducted in conformity with the rules and regulations.

Collection Accounts

80.1 Sometimes, an account holder e g Company, Sales Organisation, Life Insurance Corporation of India, etc , may request the Bank to collect moneys/cheques etc , deposited by their representatives and/or general public at centres where the Bank has Branches and to transfer such collections at specified intervals to their main account at a specified Branch/bank.

80.2 Before opening such an account, Branches should refer to the Zonal Office for approval Zonal Office will fix the terms and conditions depending upon the value of the account to the Bank as a whole. That office will also fix the exchanges on transfer of funds from the collecting centres to the main Branch of the Bank at which the collections are to be centralized.

80.3 Collection account is non-operating current account and no transaction other than remitting funds to the main account should take place (cheque book should not be issued). Actual postages incurred in remitting the funds and also the exchange as per agreed terms should be recovered from the account holder.

80.4 All the usual formalities connected with the opening of an account are to be observed in this type of account also, with an exception that the main Branch at which the collections are to be centralised will supply the usual forms and verified specimen signatures to the Branch where the collection account is to be maintained.

80.5 Opening of this type of account should be restricted to well-known and respectable parties.

II. INTRODUCTION OF ACCOUNTS

81. Branches should invariably insist upon the prospective depositors to furnish introduction for opening any type of deposit account irrespective of their nature and the mode of operation permitted therein. Introduction should be treated as a substantive step having real significance and not merely a formality. Branches should take steps to satisfy themselves about the identity of the depositors (Also refer paragraph 104).

CHAPTER – 2 DEPOSITS GENERAL 3482. Obtaining introduction is necessary because failure to do so might be construed as the Bank not having "acted in good faith and without negligence" and the Bank may be deprived of the protection under Section 131 of the Negotiable Instruments Act, 1881 against claim by the true owner of a cheque wrongly collected by the Bank.

83. Merely an introduction from another account holder is not enough. Before accepting such an introduction, the Bank must be satisfied that the account of the introducer is well-conducted and his dealings are satisfactory. The authenticity of the introduction should be established beyond doubt.

83.A However the branch may open a Saving Bank Account against production of any one of the following current valid document, which may be accepted in lieu of introduction:-

i) Election Identity Card

ii) Passport,iii) PAN Cardiv) Driving License,v) Govt.ID Cardvi) Photo Credit Card

The official opening the account should obtain photocopy of the document and verify with the original. The official should also certify having verified the original document under his / her signature Code no. All other instructions for opening new SB accounts remain unchanged and necessary steps to be taken to satisfy about the genuineness of the person opening the account.

84. As far as possible, the introducer should sign the account opening form/card at the appropriate place in the presence of a Bank official. The introducer of an account should expressly confirm inter alia, the identity, occupation and address of the prospective account holder by signing a certificate incorporated in the account opening form/card with the following wording :

"I certify that I have known Mr./Mrs./Ms.................................................................................... since the past ..................... months/years and confirm his/her occupation and address as stated in this application.

Account Number ................................. Introducer's Signature"

The introducer should write full name of the depositor in the certificate in his own handwriting. In those account opening forms/card wherein the certificate format is not incorporated, such certificate should be obtained at an appropriate place on the form/card. The signature of the introducer on the account opening form/card should be verified promptly with his specimen signature on record and with the same care as required to verify the drawer's signature on cheques. The officer verifying the signatures should initial against the signature in token of such verification.

84.A. Attempts are made by unscrupulous elements to open accounts in fictitious names to route black money transactions through them. By operating upon such accounts these persons can render infructuous several provisions of Income-tax act enacted for the purpose of curbing circulation of black money. Branches should, in no way, be a party to facilitate any benami or bogus deposit transactions.

85. When an account opening form/card, duly completed in all respects with the introducer's signature thereon (or a letter of introduction), is presented for opening an account, the account may be opened and initial deposit in cash may be accepted. The Bank must try to contact the introducer on telephone, if he is a local person and has a telephone, and also send him a letter of thanks (more particularly in current accounts) (Specimen-Appendix XVIII) thereby giving him an opportunity to confirm or disclaim the knowledge about the account holder. A note should be made by the official opening the account (under his signature) that

CHAPTER – 2 DEPOSITS GENERAL 35he contacted the introducer on telephone (date should also be mentioned) and that a letter of thanks was sent to him. Such a letter to the introducer should be numbered and sent under Registered and Acknowledgment Due Post. A copy of the letter should be kept attached to the relative account opening form/card.

86. When a prospective account holder calls at the Bank with an account opening form/card bearing only the introducer's signature and proceeds to fill in his name and other particulars, the officer concerned should exercise special care before accepting such introduction, as it is difficult to know whether the person who calls at the Bank to open the account is the person whom the introducer intended to introduce. It is for this reason, the introducer should come to the Bank in person with the customer and introduce the account. Where this is not possible for genuine reasons, the relative account opening form/card may be accepted and the account should be opened ONLY on receipt of confirmation from the introducer. This point should be made clear to the customer. Whenever an account is introduced by the customer of another Branch and the signature of the introducer is verified by an official of that Branch, the same should be promptly followed by a suitable letter from the Branch which verified the signature of the introducer. A deposit account will be considered as "properly introduced" only on receipt of confirmation where an account has been introduced in absentia. Therefore, when the introduction is in absentia, such accounts should be opened only on receipt of letter of confirmation. In all cases, the signature of the introducer and of the official of other Branch verifying the signature of the introducer should be verified by the account opening Branch beyond doubt.

86.A. When a prospective depositor approaches a Branch with an account opening form/card with his signature thereon, duly verified by an official of another branch the branch should open the account and accept deposits. However, withdrawals from the account should not be allowed until satisfactory confirmation is obtained from the branch which has verified his signature on the form/card.

87. At newly opened Branches, it may be difficult to enforce rigidly the rule that new accounts should be introduced by Bank's account holders or customers of good standing. Introductions in such circumstances may be accepted either by means of latest passports or identity cards issued by Government departments etc., or from other respectable and known persons, but the Branch should exercise caution against undesirable accounts being opened. Branch may, at their discretion, introduce accounts of persons known to them but a reference to the effect that "Party/ies known to me" must be recorded by them on account opening form/card at appropriate place. Where such an introductory reference is made by Manager of other Branch, his signature should be verified by the account opening Branch carefully and confirmation be obtained from him. In exceptional cases, the introduction by the members of the staff may be accepted but it is advisable, as a policy to discourage introduction of accounts by members of staff. It is often difficult to get rid off troublesome and undesirable accounts later.

88. A current/savings bank account of a person who is not otherwise known to the Bank should not be opened without first obtaining proper introductory reference to the satisfaction of the Bank. The antecedents of the introductory references furnished by the account holder should be verified, to eliminate the possibility of account being opened in fictitious name on the strength of forged and worthless introduction. Apart from the risk of a person of doubtful integrity wanting to open an account to obtain possession of a cheque book for misuse, there is always the possibility that he might be an undischarged insolvent/bankrupt.

88.A. An introduction of an account by a customer of another bank should be discouraged, as far as possible.

89. No cheque book should be issued until the introductory reference is satisfactory in current/savings bank accounts.

90. Every officer who is charged with the responsibility of opening current/savings bank accounts must bear in mind the need to be continuously vigilant in accepting `introduction' and to be scrupulously prompt in getting verification of the introducer's signature.

CHAPTER – 2 DEPOSITS GENERAL 3691. A note on a separate paper giving information on the means, standing, etc., of the current account holder may be prepared and filed along with the set of account opening forms. A suitable note should be made in the ledger about the other accounts he maintains with the Bank. Copies of the latest balance sheets may be requested from limited company customers and kept on Branch records.

92. In a very special case, cheques/demand drafts, etc., may be accepted for collection in an account in which introducer's references are still to be obtained but on no account should payment there against be made until the Bank is fully satisfied about the introduction of the account holder.

93. Branches should guard against undesirable current accounts being transferred to them from other banks. It may be advisable in such cases to refer to those banks from which the accounts are being transferred. However, much depends upon the known facts of the case. Where the account is canvassed by the Branch, such a reference may be unnecessary .

94.1 Transactions of big amounts in such accounts should be carefully scrutinised atleast for a period of six months to see that the account is conducted satisfactorily. Having regard interalia, to the occupation / standing and means of account holders, the transactions passing through the account should not be such as would reasonably put the Bank on inquiry. It may be particularly seen whether the new account has been exclusively used for collection of third-party cheques. Immediate withdrawals of large amounts may also attract attention. When cheques for large amounts are deposited for collection after the account is opened with a small initial cash deposit, particular care should be taken and full enquiries made to establish the genuineness of the account/transaction etc. Branches should report unusual characteristics or features of any account to their higher controlling authorities particularly the accounts where there may be large deposits or large withdrawals in cash although there may not be any obstensible reasons to justify such transactions. Controlling authorities should make a note of such accounts to facilitate watch and timely action, wherever necessary, in the interest of the Bank and the banking system.

94.2 A watch can easily be kept by the clerk making the entries as well as the officer authorising the transactions intelligently so that any attempt to fraud could be detected in good time.

94.3 (i) To safeguard the Bank / Branch Manager against frauds it will be the primary responsibility of the in-charges of the Deposit section/Department to authenticate the opening of new accounts and thereafter permit deposit of cheques/instruments and issuance of cheque books, monitor such accounts.

(ii) Close monitoring of cash deposits and withdrawals for substantial amounts say Rs. 50,000/- and above in rural branches, Rs. 1,00,000/- and above in Semi Urban branches, Rs. 5 Lakhs and above in Urban branches and Rs. 10 Lakhs and above in Metropolitan branches in the accounts should be done. Monitoring should be done by the cheque cancelling/ transaction authorising and authorities as mentioned in sub-para (i) above.

(iii) The above mentioned transactions should be scrutinised periodically, say, every fortnight, by the Manager, Chief Manager, Assistant General Manager and test checks of newly opened accounts should be carried out.

(iii) Such transactions of Rs. 10 lacs and above should be reported to their Zonal Offices in the prescribed format on fortnightly basis. Zonal Offices should scrutinise the details of such transactions reported by the branches and look into any particular transaction which appears to be prima facie of dubious nature or giving rise to suspicion. Zonal Offices in turn, should apprise Zonal Inspection and Audit Department if any transactions of suspicious nature are observed.

CHAPTER – 2 DEPOSITS GENERAL 37III. Filling in of the Account Opening Form/Card

95.1 All depositors desirous of opening any type of deposit account should complete relative Account Opening Form fully, in all respects with full name(s), full signature(s) and specimen signature(s) at appropriate places. In the case of firms or companies, full names, signatures and specimen signatures should be of persons authorised to operate on the account. The officer should examine the account opening form/card etc., to see that the depositor(s) has signed/completed it properly, has given the required particulars against each head and that alterations on the account opening forms etc., are duly authenticated under the initials of all the account holders.

To fall in line with the RBI’s guidelines on Know Your Customer (KYC) policy the account opening form has been modified. The Branches are required to obtain the revised account opening form while opening Savings Bank, Current Account, all types of term deposits, BOI Savings Plus, BOI Current Plus, Overdraft and Cash Credit account.

A new form is to be obtained at the time of opening of accounts for new customers. And for opening an additional account in an existing account title, only additional account opening form is to be obtained. For example, if A and B have earlier opening Savings Bank Deposit Account where this new form has been obtained, incase they desire to open a Term deposit account, the additional form need only to be obtained. The new account opening form should be obtained in all existing accounts also in a phased manner.

95.2 As pass books of current deposit, savings bank deposit and recurring deposit accounts are now printed without the Rules, a separate printed copy of the Rules is given to the account holders at the time of opening of the account who are required to sign it. A printed copy of the rules duly signed by the account holder should be properly filed in a separate box file or pasting file after writing prominently the account number at the top of it on the right hand side for easy reference. An extra copy of the rules may be supplied to the account holder, if so desired.

96. The officer must ensure that every signature appearing on the form and also on any other forms taken, such as, partnership letters, etc., is authenticated by his initials in red ink/ball-point pen. It is not sufficient to say "signature verified" and to initial once only on the account opening form/card. The signature(s) of the introducer should also be verified by an authorised officer with as much care as is required to verify the signatures of drawers of cheques. The account opening official should, in addition to his initials authenticating the signatures of the account holders and the introducer, affix his full signature in red with the serial (code) number, against an appropriate legend "Account opened by ........". Branches where Special Assistants (who do not have signing authority) are entrusted with the work of opening of accounts should, after signing against the legend "Account opened by ........" write their full names against code number.

97. As far as possible, the account opening form/card should be completed in the presence of an officer of the Bank. The facility of sending account opening form/card to be completed and signed outside the Branch should be extended with circumspection to depositor(s) well-known to the Branch and the signature(s) on the account opening form/card verified with the specimen signature on record in respect of their other account(s), if any. It is advisable to write the name(s) of the proposed account holder(s) on the account opening form/card before handing it over for completion outside the Branch.

98.1 Signatures in Capital letters or Distinct Disjointed AIphabets : Such signatures are exposed to risk and can be easily forged. This should be explained to the customer at the time of opening account. If, however, the customer insists on giving such specimen signatures, he should be asked to give his recent photograph additionally. Branches should complete other formalities as detailed in paragraph 33 to 35 of this chapter when such photographs are obtained.

98.2 Vernacular Signature : Signature(s) in the regional languages known to the Branch can be accepted provided the signature(s) is steady and natural. In case an employee comes across a signature in a language not known to him, he could always take the assistance of

CHAPTER – 2 DEPOSITS GENERAL 38some other employee at the Branch who knows the language for the purpose of verification of the specimen signature. In such instances particular attention should be given to the Strokes in the signature.

Special Instructions

(1) Deposits Accounts 99.1 The types of operational instructions called "Special Instructions" are printed on the account opening form/card. It is necessary to obtain clear and unambiguous instructions regarding the mode of operations on the form/card under the signature(s) of all the depositor(s). The inapplicable wordings of special instructions should be deleted/scored through neatly under proper authentication of the depositor(s). A line should be drawn across any unused space left on the form/card to ensure that unauthorised insertions are not made subsequently.

99.2 The instructions in paragraph 99 1 above apply to accounts of individuals Special instructions in paragraph 100.2 (c) below are applicable to all other types of deposit accounts in addition to current accounts

(2) Current Accounts

100. The different types of special instructions which can be given in current accounts are given below :

(a) Joint Current Accounts (other than "Former or Survivor" accounts)

"The account will be operated upon by, (a) Either or Survivor

cheques and orders to pay will be drawn OR

and signed by, (b) Both of us jointly or survivor securities, if any, deliverable to OR balance payable to ** (c) Any one of us or any one of the survivors (** One of the applicable wordings (a) to (d) should be inserted here)

of us or the last survivor OR

(d) Any two of us or any two of the Survivors of us or the last survivor etc

(b) Former or Survivor Accounts

"The account will be operated upon and cheques and orders to pay will be drawn and signed by and the balance will be repayable to the former i e , the first named account holder Mr/Mrs/Miss ………………..during his/her life time and only after his/her death, by and to the second named account holder Mr /Mrs /Miss …………………………if then surviving"

(c) Other Accounts

In the accounts of Proprietorship, Partnership Concerns, Joint Hindu Families, Limited Companies, Associations, etc, special instructions should be obtained as under "The account will be styled as ------------------------------------(write the full title of the account) and will be operated upon, cheques and orders to pay will be drawn and signed by --------------

* (i) Proprietorship concern - "the sole proprietor Mr XYZ"

* (ii) Partnership firm - "any one (or any two/three) of the partners"

* (iii) Joint Hindu Family - "Karta"

CHAPTER – 2 DEPOSITS GENERAL 39* (iv) Limited Company, Association, etc - The exact instructions regarding the operations on the account giving reference to the resolution of the Board of Directors or the Governing Body, as the case may be, should be stated. (For further details refer relevant paragraphs in "Types of Accounts"). (3) Joint Accounts of Three Persons with Special Instructions "Former or Survivor"

101.1 The wording as under should be affixed as an allonge to the specimen signature cards.

Savings bank Accounts:

"Former or Survivor" that is, by the account-holder first named on this card during his/her life-time and only after his/her death by (i) both the second and third named account-holders jointly or by the survivor of them OR (ii) by either the second named account-holder or the third named account-holder or by the survivor of them OR by the second named account-holder only if alive or by the survivor of the second and third named account-holders.

Term Deposit Accounts :

"Former or Survivor", that is, to the account-holder first named on this card during his/her lifetime and only after his/her death to (i) both the second and third named account holders jointly or to the survivor of them OR (ii) to either the second named account-holder or the third named account-holder or to the survivor of them OR (iii) to the second named account-holder only if alive or to the survivor of the second and third named account-holders.

101.2 Branches should note

i) to obtain the signatures of the account holders both on account opening cards and on the allonge and

ii) to mention on the cards "Operational Instructions attached".

Noting Brief Special Instructions on Account Opening Form/Card

102.1 For drawing the attention of the cancelling officer, the operational instructions should be prominently but briefly indicated against specimen signatures of depositors on the form/card in red ink/ball-point pen by the officer opening the account.

'E or S' for 'Either or Survivor'F or S' for Former or Survivor' Jointly' ' for 'both of us Jointly or Survivor'

'Any One' for 'Anyone of us or anyone of the survivors of us or the last survivor'

Any two jointly' for Any two of us or any two of the survivors of us or the last survivor etc.

102.2 If there is similarity in the name(s)/title(s) of two or more accounts, the word "care" should be written in red ink/ball-point pen in bold letters on the top of the relative account opening forms/cards. The account holders of both the accounts should also be requested to write the full titles of the accounts on cheques and paying-in-slips and to adopt a distinct mode of signature or employ a distinguishing code in addition to the usual signature in order to distinguish accounts from one another.

Other Items to be completed on the Form/Card

(a) Occupation


103.1 The occupation should not be given briefly as "Business", "Service", "Trade" or "Industry". The account holder must describe his occupation in definite terms e. g. "Accounts Officer in A B & Co" or "Manufacturers and Importers of Mechanical, Electrical, Textile, Chemical and Pharmaceutical goods" or "Importers and dealers in Mill Stores and Machinery", etc.

103.2 If an account holder is in service, all details about his/her post and name and address with telephone number, if any, of the employer should be noted on the account opening form/card.

103.3 In the case of an account of a married woman, the occupation of the husband, and the name and address of his employer, if any, should be ascertained tactfully and noted on the account opening form/card.

(b) Address

104.1 The address must be full and complete - the name and the number of the building, number and/or name of the lane or street, post bag/post box number, the number of the postal district, city/town and pin code, etc , are to be stated accordingly to ensure that no deposit is accepted in "benami" or fictitious names to evade income tax.

104.2 The account holder's address, where he desires correspondence from the Bank to be addressed to him, should be recorded.

104.3 In the case of a joint account, the address of the first named in the account is usually recorded. Should the account holders desire otherwise, there can be no objection to recording the address of such other account holder(s) as may be desired by all the account holder(s) under their joint signature(s).

104.4 Sometimes friends and relatives of members of the staff open accounts with the Bank and give addresses, care of the members of the staff at the Bank. This should not be accepted.

104.5 To ensure correctness of the address given in the account opening form/card, Branches should send by ordinary post, a letter of thanks to the account holder, soon after the new account is opened. In case the letter of thanks is returned undelivered by the postal authorities, necessary enquiries should be made about the customer from all possible sources. In the meantime, operations in this account should be closely monitored and extra precaution taken in handling the account.

The proof of address may be submitted by the account holder in any of the following forms :

i) Passport copyii) Photo Credit Cardiii) Voter’s ID cardiv) Driving Licencev) Government ID Cardvi) PAN Cardvii) Latest Telephone Billviii) Latest Electricity Billix) Gas Connection Receiptx) ID Card issued by employerxi) ID certificate ( bearing photograph of applicant) issued by the Sarpanch or

Mukhiya of village or by Tahsildarxii) Ration Card Copy

CHAPTER – 2 DEPOSITS GENERAL 41xiii) Declaration from the person (having any of the document items listed (i) to (vi)

above, stating that he / she (new customer) is staying with him / her. A copy of the same should be obtained and kept on record alongwith the declaration.

104.6 It is observed that some close relatives e.g. wife, son, daughter, parents etc. who live with their close relatives viz. their husband, father/mother, son/daughter etc. as the case may be, were finding difficulty in opening their accounts with Banks as utility bills required for address verification were not in their names. As clarified by RBI, Branches can obtain an identity document and a utility bill of the respective relative with whom the prospective customer is residing along with a suitable declaration from the relative that the said prospective customer is a relative and is staying with him/her. Branches can thereafter proceed with opening of the account/s of such prospective customer/s. They can also use any supplementary evidence such as a letter received through post for further verification of the address. While dealing with such cases Branches should keep in mind the spirit behind the instructions issued by the RBI and ensure that no undue hardship/harassment is meted out to such individuals.

Initial Deposit

105. An account should ordinarily be opened with an initial deposit of cash. The Manager (or the Deputy Manager/Deputy Chief Manager at larger Branches) may accept, at his discretion a cheque drawn by the prospective account holder on his own account with another bank as initial deposit. A cheque drawn in favour of a prospective account holder by a third-party should not be accepted unless the prospective account holder is well-known to the Bank or is introduced by a customer of good standing and well-known to the Bank. A cheque drawn in favour of a third-party should not, as a rule, be accepted as an initial deposit.

Approval of ACCOUNT Opening forms/Cards

106.1 The Officers/Special Assistants opening the Current Accounts/Savings Bank Accounts/Term Deposit Accounts should verify the signatures of the customers/introducers as per the existing instructions. The account opening official, in addition to initialling (as his authentication) against every signature of the customer on the account opening form/card should affix his full signature in red with the serial (code) number against appropriate legend "Account opened by ………………. ". Thereafter, the account opening form/card should be submitted to the following designated authorities for approval/authentication.

106.2 Approval of account opening form/card is tantamount to approval for opening of account and due care must, therefore, be exercised by the concerned officer. The officer approving/authenticating the account opening forms/cards should ensure that the specimen signatures of prospective account holders and introducers are individually authenticated by the officer opening the accounts and thereby he should satisfy himself that the instructions obtained for operation on accounts are acceptable to the Bank. He should also check whether the official opening the account has superimposed his full signature (in red) with the serial number. Thereafter, he should initial the account opening form/card in token of his having checked it. It would be the responsibility of the officer approving/authenticating the account opening forms/cards to see daily without fail what accounts are opened and to satisfy himself about the genuineness of the introduction.

106.3 The scrutiny/approval of current account opening forms should precede the opening of the account. But in the case of Savings Bank/Term Deposit Accounts, such scrutiny may be

Category of Branch Account opening form to be approved/authenticated by Small Manager Medium Branch Manager/ Manager (Administration) Large Senior Branch Manager/Senior Manager (Administration) Very Large Senior Manager (Deposits/Deputy Manager (Deposits) if any Exceptionally Large Senior Manager (Deposits/Deputy Manager (Deposits) if any

CHAPTER – 2 DEPOSITS GENERAL 42done after the account is opened but before opening of the account in the ledger/ computer system.

106.4 Branch Managers of Exceptionally Large, Very Large Branches should carefully note to include scrutiny of the account opening forms/cards in their periodic Test Checks in order to ascertain the quality of supervision at the Branch.

Additional Documents

106.5 In addition to account opening form/card, additional documents are required to be taken in deposit accounts A list of such accounts and additional documents to be taken is given below for ready reference.

Any one of the following documents should be obtained to confirm the present address of the applicant as mentioned in the application form.

Types of Accounts Additional Documents i) Individual Accounts (a) Passport copy

(b) Photo Credit Card(c) Voter’s ID card(d) Driving Licence(e) Govt.ID card(f) PAN card

ii) For Senior Citizens (a) Passport Copy(b) School Leaving Certificate(c) Voter’s ID(d) LIC policy

(e) Employment Discharge Card issued by PSUs

(f) Any other document acceptable to branch

(iii Partnership Firms i) Partnership Letter (Form L 438),

ii) Registration certificate of firm (in case of advance a/c.

(iv Joint Hindu Families i) Joint Hindu Family Letter (Form CD 115) in case of a/c. of business or trading nature

ii) Joint Hindu Family letter (Appendix VI in case of deposit a/c of non trading nature

(v Limited Companies (a) Certificate of Incorporation,

(b) Certificate of Commencement of Business (Not required in case of Private Companies or Companies Limited by Guarantee),

(c) Memorandum and Articles of Association, (d) Board Resolution,

(e) Latest audited Balance Sheet and Profit and Loss Account (in case of a Public Limited Company)

f) A list of present Director signed by Chairman

(vi Clubs, Schools, Societies (including Co-operatives), Associations, Committees etc

(a) (b)

Certificate of Registration or Incorporation (if registered), Certificate from Registrar of Co-operative Societies, wherever necessary,

(c) Bye-laws, Rules, Regulations, etc, as the case may be,

(d) Memorandum of Association, if any, (e) Resolution, (Appendix XII or XIII)

(f) Latest copy of the Balance Sheet in case of Cooperative Societies, if available


(Vii) Trusts (a) Original Trust Deed for verification. copy to be kept on file.(b) Instrument or Document of Trust or relevant extract thereof,(c) Resolution, (Appendix XIV or XV or XIV )(d) Certificate of Registration from Charity Commissioner (if trust is a Public Charitable Trust)

(Viii) Executors and Administrators Probate or Succession Certificate or Letters of Administration or Administrator General's Certificate

(IX) Provident Funds (a) Trust Deed, (b) Rules of the Provident Fund, (c) Resolution

(X) Liquidators (voluntary) Resolution (XI) State Financial Corporations (a) Relevant copy of Act or Legislation,

(b) Bye-laws, if any, (c) Resolution

(XII) Guardians appointed by Court in respect of Minors Court order or Guardianship Certificate

(For further details refer relevant paragraphs in "TYPES OF ACCOUNTS") Bills 1005 in all a/cs except Savings bank, and Tem Deposit accounts.


Customer Acceptance Policy

106.6 Accounts of the following customers will not be opened:- Account(s) of anonymous/fictitious /benami name(s).- Account(s) of persons with criminal background and/or having

connections with terrorist organisation(s).106.7 While carrying out due diligence, it should be ensured that the procedure(s) adopted

will not result in denial of banking services to the general public especially those who are financially or socially disadvantaged.

106.8 Proper verification of the related documents/identification of the customer is a pre- requisite before accounts of new customers are opened and more importantly, before existing accounts are closed. Customer identification procedure(s) should be meticulously followed.

106.9 The Customer Identification Procedure(s) is/are to be undertaken while establishing a banking relationship or when it is necessary to obtain additional information from the existing customers based on the conduct or behaviour of the account.

106.10 The Customer Identification Procedure(s) is/are to be undertaken also in respect of non-account holders approaching Bank for high-value one-off transaction.

106.11 It should be ensured that sufficient information is obtained on :- the name of the account holder, - nature of business activity,- location (address, phone numbers, fax numbers, etc,.),- mode of payments,- volume of turnover,- social and financial status, etc,.

106.12 Information collected at the outset for purpose of customer identification and profiling would include:

- The purpose and reason for opening the account or establishing the relationship.- The anticipated level and nature of the activity that is to be undertaken;- The expected origin of the funds.- Details of occupation/employment.- Sources of wealth or income.

CHAPTER – 2 DEPOSITS GENERAL 45KYC Documentation for Different Types of Customers

106.13 The guidelines below will be applicable to all new customers opening Current, Savings and Term Deposit accounts.

106.14 The documents (including photographs) listed against individuals should be obtained individually also in case of each partner/director/HUF member/trustee/authorised officials/ Power of Attorney (POA) holder besides the firm’s/company’s own documents.

106.15 While normally any of the following documents would suffice to establish both the identity and the correct address of the applicant customer, additional documents may also be obtained by branches (such as employer’s letter or Sales Tax Registration Certificate, etc,.) to satisfy themselves further in case of any ambiguity.

106.17 In addition to these documents branches would continue to obtain the customer-specific documents like Proprietorship declaration/partnership letter/Joint HUF –CD 115) etc, as the case may be.

106.18 The account shall be opened on the basis of stipulated documentation, 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 the documents stipulated below:

Accounts ofDocuments For Verification/Identification

Individuals(including Proprietory Firms)

For verification of Legal name and Any other Names used Passport PAN Card Voter’s Identity Card Driving Licence and Photograph. Employer’s ID Card (or satisfactory confirmation/letter from

Employer ) Letter from a recognised public authority or public servant verifying

the identity and residence of the customer to the satisfaction of the Bank.

PhotoCredit Card.For verification of Current Address (Any of the following in

addition to any of the above) Telephone Bill/Electricity Bill/Gas Connection Receipt. Bank Account Statement. Ration Card. (In case of Rural /Semi-Urban Places)- ID Certificate (bearing

applicant customer’s photograph) issued by the Local Body/NGO/MFI or Sarpanch or Mukhiya of village or by Tehsildar.

Partnership FirmsNote: Each partner’s name and address to be individually verified/identified as listed against Individuals.

Copy of Registration Certificate (if firm registered). Any of the documents (given above for individual accounts)

identifying the partners or the Power of Attorney Holders and their addresses.

Photographs of the partners (at least those operating the account). Telephone/Electricity or any utility Bill in the name of the

firm/partners. Power of Attorney granted to a partner/employee of the firm to

transact business on its behalf.Note: The Bank’s practice is not to obtain the Partnership Deed although KYC guidelines have included the Partnership Deed as one documentary proof for verification/identification.

Limited CompaniesNote: Each director’s /operating officials’

Copy of Certificate of Incorporation. Memorandum & Articles of Asssociation. Board Resolution to open the Account and List of officials

authorised to operate the account.

CHAPTER – 2 DEPOSITS GENERAL 46name and address to be individually verified / identified as listed against Individuals.

Authorised Officials’ Photographs and signatures duly attested by the Company.

PAN allotment Letter (Xerox copy duly attested by the Company) of Company/Directors/Authorised Officials.

Power of Attorney, if any, granted to the company’s managers/ officers/employees to transact business on its behalf.

Copy of the Telephone bill in name of Company/Directors/Authorised Officials.

Hindu Undivided Family(HUF)Note: Each member’s name and address to be individually verified / identified as listed against Individuals.

Declaration from the Karta. Proof of identification of Karta. Joint Hindu Family Letter signed by the Karta and all the adult

coparceners.

Society/Association/Club.Note: Each authorised signatory’s name and address to be individually verified / identified as listed against Individuals.

Copy of Bye-Laws of the Society/Association/Club. Resolution for opening of the account. Certificate of Copy of registration in the case of registered

Society/Association/Club.

Trusts/Foundations/Schools/Colleges.Note: Each Trustee’s/Settler’s/Beneficiariy’s authorised signatory’s name and address to be individually verified / identified as listed against Individuals.

Certificate of registration, if registered. Trust Deed. Resolution of the Managing Body of the

Trust/Foundation/Schools/Colleges.. Power of Attorney, if any, granted to transact business on behalf of

the trust/Foundation. Any Document listing out the names of the

trustees/settlors/beneficiaries and POA holders and other key officials involved in the day to day management of the trust/foundation to the bank’s satisfaction.

KYC Documentation for Low Income Customers in both Rural and Urban Areas:

106.19 RBI has simplified the KYC procedure for opening accounts of those persons belonging to low income category in both rural and urban areas who are unable to satisfy the Bank about their identity and address (by means of any of the above-stipulated documents or by providing suitable introduction by an existing customer), and therefore are unable to open any account with the Bank. In such cases, Bank may rely on any other satisfactory evidence as to the identity and address of the customer.

106.20 However, such accounts opened are subject to following conditions:- Balances in the said customers’ all accounts put together not to exceed

Rs.50,000/=.- The total credit in all accounts put together also not to exceed Rs.1,00,000/=.- If either of the above ceiling is exceeded, branches have to follow the usual

documentation formalities (like obtention of documents as prescribed in III above).

CHAPTER – 2 DEPOSITS GENERAL 47- The customer has to be made aware of this requirement (of full KYC

procedures) and that transactions cannot be allowed in the accounts, in the event the above ceilings are exceeded.

- Branches should advise the customer in advance immediately when the balance reaches Rs.40,000/= or the credit total reaches Rs.80,000/= so as to alert him about the need for immediate compliance with full KYC procedures.

- Operations would otherwise be stopped if customer fails to comply with this requirement.

106.21 These simplified document formalities would be applicable also to the persons affected by natural calamities like floods etc and who have been given grants etc by State/Central govt.s. The initial credit of such grants shall not be counted towards the total credit (of Rs.1 Lakh stipulated above).

IV. DEPOSIT LEDGERS : WRITING, POSTING, CHECKING AND BALANCING

Computer Systems

107.1 Recording of entries in books, ledgers, registers, etc , should normally be made only by the staff member who is entrusted with the relative work. However, it should be ensured that this does not create an impediment in smooth flow of work at the Branch.

107.2 Separate ledgers designed for opening accounts under each category of deposits are required to be maintained by Branches for recording operations in the accounts of each type of deposit concerned.

Opening of New Accounts

108.1 All particulars of account holder(s) such as the full name(s) (i e title of account), address, telephone number, operational instructions, other special instructions given by the account holder(s) e.g. the frequency of periodical statement etc., should be recorded from the account opening form/card and cheque book series numbers (where applicable) should be recorded/noted from cheque request form. The title of the account should be spelt and styled exactly as in the relative account opening form/card. In the case of a joint account, the names of all the account holders should be written. In the cases of sole proprietary concerns or partnerships trading under impersonal names or in names other than their own, it is desirable that the style of the account as entered in the ledger head should show the connection of the proprietor or partners of the concern, e.g. Rainbow Trading Co , A B , Proprietor or Partner and not simply the Rainbow Trading Co. The names of partners should be noted in the ledger folio in the case of partnership accounts. All entries in the ledger head must be individually checked and initialed by ledger checking Officer. Instructions which cease to be operative should be ruled through in red ink/ball-point pen and the date and authority (e.g. account holder's letter) of such cancellation should be entered under the initials of ledger checking officer.

(a) Current Accounts

109. If there are accounts with similar names, the words “Care : similar account (Title of the other similar account)" should be mentioned in all the concerned accounts. The account holders should be requested to use rubber stamps to affix the full title of the accounts on their paying-in-slips and cheques. They might also be advised to write a distinguishing code in addition to their usual signatures.

(b) Savings Bank Accounts

110. Savings Bank accounts must be opened in the ledgers (Form SB 321) strictly in the serial order of account numbers.


(c) Other Accounts

111. In the case of other deposit accounts viz., Term Deposits, Monthly Income Certificates, Double Benefit Deposit Certificates, Recurring Deposits, etc., there are certain other additional columns printed on the ledger folios such as the term of deposit, rate of interest, due dates, etc., which should also be recorded under respective columns fully.

Ledger Posting

112.1 The transactions must be posted up to date, accurately and authenticated in the same evening.

Precautions in Posting Credit/Debit Entries

112.2 Before cheques/withdrawal forms, paying-in-slips or vouchers are posted in the ledger accounts, it should be ensured that the title of the ledger account and account number (where applicable) is the same as that written on cheques/withdrawal forms, paying-in-slips or vouchers. The vouchers should be properly arranged either alphabetically or according to the number of accounts, as the case may be, to facilitate continuous and smooth posting. (Also refer paragraphs 16.5 and 52.5 in Chapter on Cash and Clearing.)

112.3 The ledger keepers must enter full particulars of debit/credit entries under the column `Particulars' legibly.

Ledger Checking

113. When checking ledgers, the particulars (of names of accounts, account numbers and amounts) from the relative vouchers should be checked. The authorising officer should run through the vouchers and compare that :

(a) in respect of each credit voucher : the title of the account, account number and the amount

(b) in respect of every cheque : the amount

(c) in respect of debit vouchers other than cheques : the name, account number and the amount are correct.

114.1 After the calling is over, the officer should go through the vouchers to ensure that :

(a) each voucher bears the transaction number entered by the posting clerk under his initials (to indicate that it has been posted in the ledger)

(b) each voucher bears "Cash", "Clearing" or "Transfer" stamp (with date) as the case may be

(c) vouchers are passed by the authorised officers and all credit and debit vouchers over Rs. 5,000/- bear the full signatures of officers (d) each cash payment cheque or other instrument involving payment of cash of Rs. 500/- and over bears the full signature of the cancelling officer (and not merely his initials)

(e) all payment cheques and other instruments involving payment of cash are cancelled with full signatures singly as under :

Sr.No Category of staff RevisedCash Cheques upto andincluding (Rs.)

Clearing / Transfer Cheques (Rs.)

I. Special Assistants 20,000 50,000

CHAPTER – 2 DEPOSITS GENERAL 49II. Officer(A) Promotee Officers / Direct Recruit

Officers (during probation)50,000 50,000

(B) Officers after Confirmation 50,000 1,00,000(C) Managers of One Officer Branch Full Powers Full Powers

Regarding second cancellation / authorisation, the following requirements are to be followed:-

a) Where the first cancellation is by a special assistant, the second cancellation invariably should be done by an officer.

b) Where the first cancellation is by an officer the second cancellation will be done by another officer.

The official passing payment of cheques should pass (cancel) the drawer’s signature on the instrument in such a manner that it is not obliterated / defaced,

SIGNING OF CLEARING AND TRANSFER VOUCHER

The instructions regarding signing of clearing & transfer vouchers is still hold good.

Signatory signing underSection I Section II

For amounts upto and inclusive of Rs.50,000/-

May be signed singly May be signed singly

For amounts above Rs.50,000/- & upto Rs.1,00,000/-

- do - Must be signed jointly

For amounts above Rs.1,00,000/-

Must be signed jointly Must be signed jointly

i) Where first signatory is of Section II the second signatory must be of Section I.ii) Where first signatory is of Section I the second signatory must be of Section I except

in case of Single Officer branches.iii) Above instructions are not applicable to P & L Suspense Debit, Sundry Credits,

Sundry Deposits and Dormant Account etc. Vouchers which should invariably be checked and signed by two officials.

The signing powers for Demand Drafts / Pay Orders / Mail Transfers / Telegraphic Transfers / Term Deposit Receipts as under-

Category Signing Power(A) Singly i) Section II- Special Assistants/ Cashier in – charge

Instruments upto Rs.25,000/- or equivalent in Foreign Currency

Section I – Officers Instruments upto Rs.50,000/- or equivalent in Foreign Currency

(B) Jointlyii) Jointly where one of the signatory should be from Section I

Instruments above Rs.50,000/- or equivalent in Foreign Currency

CHAPTER – 2 DEPOSITS GENERAL 50114.2 When authenticating the postings, the checking officer should ensure that :

(a) the vouchers are posted in the right accounts and the amounts are correctly entered in the correct column, debit or credit, as the case may be

(b) the serial numbers of the cheque(s) drawn on the account are from the cheque book issued to the account holder

(c) no cheque has been accepted in a savings bank account unless the account is introduced to the satisfaction of the Bank or has been otherwise approved

(d) no stopped cheques have been inadvertently paid

(e) restrictions placed on the operations of an account under orders of any Court/Income Tax Authorities are adhered to. If any mistake is noticed, it should be corrected on the spot in all the relevant books under the initials of the officer.

115. Ledger Printing – In all computerised branch ledger print should be done once in a year.

Ledger Balancing

116.1 Balances of all accounts under each category of deposits should be jotted periodically and the total balances of all ledger accounts properly tallied with the respective outstanding balances in the General Ledger Accounts. (Refer paragraph 117 below). A separate Balance Book may be maintained for each ledger with a label indicating the category of deposit and number of ledger to which it relates. A separate register be maintained indicating therein date of jotting the balances in SB,CD,SDR,DBD etc. and initialled by the concerned authorities. The Manager should periodically check the register.

Periodicity of Balancing of Ledgers

117. The following schedule is an indication of the periodicity of balancing of all types of deposit ledgers:

Type of Deposit Ledger Periodicity of Balancing

Current Accounts Twice a month - (a) on a variable day between the 10th and 17th of each month and (b) the last day or last Friday of each month

Savings Bank Accounts Once a month during last week

Fixed & Short Deposit Accounts Once a month

Monthly Income Certificate Accounts _ do _

Double Benefit Deposit Accounts _ do _

Recurring Deposit Accounts _ do _

Note : All ledgers, however, should also be balanced as on the last working day of September and March each year

V. Death, Insolvency and Insanity of Account Holder

Death of Account Holder

CHAPTER – 2 DEPOSITS GENERAL 51118.1. Upon the death of an account holder the authority given by him to his banker to pay cheques either drawn by him or his agent stands revoked. Mandate letters and powers of attorney are made void by the death of the person who has given them. The Bank may or may not have received a formal notice of the account holder's death; it is sufficient notice if there is an announcement of the account holder's death in newspaper. Branches should not, however, act upon a mere rumour of an account holder's death - facts should be ascertained. All cheques signed by the account holder and presented for payment after notice of his death must be returned with the remark "Drawer deceased"; all cheques signed on behalf of the account holder(s) by the power of attorney holder(s) or the mandate holder(s) and presented for payment after the receipt of the notice of the account holder's death should be returned with the remark "Drawer (on whose behalf cheque is drawn -state his name) deceased".

118.2 In the case of current account of a partnership firm or joint account of two or more persons, when one of the partners or joint account holders in an account which is temporarily overdrawn is deceased, the Branches should endeavour to set right the account before future withdrawals/debits are made in the account.

Repayment of Balance of a Deceased Account Holder

119.1 In accounts of deceased where nominations has not been made :i) Application form for payment of balance in the deceased account holder will be

obtained on the prescribed format Appendix XX duly signed by all heirs of the deceased.

ii) The application form will accompany death certificate from the appropriate authority.

iii) Facts given in the application form will be verified and branch will get satisfied about it.

iv) Branch will obtain indemnity (specimen – As per Manual of Instructions Appendix XIX) with sureties of appropriate worth duly executed by all heirs and sureties wherever applicable.

v) Branch will not insist for succession certificate from heir for payment irrespective of balance involved. However, in case of dispute among the heirs, succession certificate will be insisted upon.

vi) Whenever deceased has left Will, Probate from the competent court will be insisted upon.

vii) Branch will obtain sanction for payment of balance from the appropriate authority as per the delegation of powers.

119.2 When the heirs of a deceased account holder request the Bank to pay the balance in the account of the deceased, without obtaining legal representation, against an indemnity letter :

(a) Branches should require the claimants to furnish particulars on a prescribed form (Specimen _ Appendix XX). The Branch should verify the particulars given in the form. (He should initial at the foot of the form to signify that he has verified the details). Care should be exercised where the reported age of one of the heirs of the deceased is 18 years; it should definitely be stated whether such heir has completed 18 years or not.

(b) If, on the basis of the information obtained, and depending upon the relevant circumstances, it is decided to repay the balance to the claimants against an Indemnity Letter, the following procedure should be followed depending upon the amount involved.

Amount of Balance Unstamped Indemnity Letter signed by the claimant(s) upto Rs. 1000 should be obtained without any surety.

Above Rs. 1,000/- Stamped Indemnity Letter signed by the claimant(s) should to Rs. 5,000/- be obtained plus one surety of standing, good for the amount

involved, who would join in signing the Indemnity Letter.

CHAPTER – 2 DEPOSITS GENERAL 52Above Rs. 5,000/- Stamped Indemnity Letter signed by the claimant(s) should to Rs. 25,000/- be obtained plus one/two sureties of standing, jointly good

for twice the amount involved, who would join in signing the Indemnity Letter.

Above Rs. 25,000/- Stamped Indemnity Letter signed by the claimant(s) plus two sureties of standing, jointly good for thrice the amount involved, who would join in signing the Indemnity Letter.

With a view to reducing the stamp duty on claimants, Branches should obtain Indemnity Letter which will be stamped as an Agreement and NOT as a Bond. Such Indemnity Letter will not be attested i.e. it is not to be witnessed. The. intention is that neither the signature of the executant of Indemnity nor the signatures of the sureties will be witnessed. This, however, does not dispense with the necessity of due identification of the sureties and of the executant of the Indemnity. Manager should independently assess the worth of the sureties and satisfy himself that the sureties are acceptable. If necessary, he may obtain status reports on the sureties from their bankers.

(c) Stamped indemnity letter duly signed by the claimants and the sureties should be preserved in a separate file with the relative correspondence and papers - in no case should be indemnity letter be filed away with the relative vouchers.

(d) The claimants should be asked to return all unused cheque forms. The pass book should also be called for and written up to date and returned.

119.3 Where the deceased account holder has not made a Will, all the heirs of the deceased should execute the indemnity letter, although the request may be to pay to one or few of the heirs.

119.4 Where the deceased account holder has made a Will but the executors of the Will do not intend to obtain the Probate and request the bank to pay the balance against an indemnity letter, the person who would be the heirs of the deceased, had he died without leaving a Will (i.e. heirs as on intestacy) should join the indemnity in addition to the executors.

Death of Individual Account Holder

120.1 If an account is in the name of an individual or proprietorship concern, upon the death of the individual/sole proprietor, the bank balances in his/its various deposit accounts become payable to the legal representative of the deceased upon production of a proper legal representation, such as a Probate, Letters of Administration, Succession Certificate or Administrator General's Certificate.

120.2 The "legal representative" of a deceased can be anyone of the following :

(a) the executor(s) who has obtained a grant of Probate of the Will of the deceased

(b) the administrator(s) who has obtained a grant of Letters of Administration to the estate of the deceased

(c) the holder of a Succession Certificate

(d) the holder of an Administrator General's Certificate

120.3 Probate is granted by Court in respect of the last Will and Testament of the deceased. Letters of Administration are issued by Court in respect of movable or immovable property and without any limit as to the value thereof. A Succession Certificate can only be issued for debts, shares or securities and not for any other property movable or immovable (jewellery or ornaments kept in a safe deposit locker). An Administrator General's Certificate can be issued only for estates not exceeding Rs. 50,000/- in the aggregate.


120.4 When Probate of a Will or Letters of Administration or other legal representation issued by a competent Court in India is produced, Branches should examine it to satisfy that :

(a) it unquestionably relates to the account of the deceased and

(b) particulars of the amount due by the Bank to the deceased are correctly shown in the schedule of property attached to the grant on the strength of which payment is desired to be made by the Bank to the holder(s).

120.5 The identity of holder of such a grant should be proved to the satisfaction of the Bank before payment is made. (Usually, the original grant or a copy thereof, certified by the Court, should be produced for registration. If such original or certified copy is not produced, but only a plain copy is produced, registration thereof should be declined and a request made for the original or a copy certified by the Court).

120.6 The particulars of the Probate or Letters of Administration or other legal representation produced should be registered in Power of Attorney Register (Form OD 127 A). The register should contain such particulars such as :

(a) date of the Will

(b) date of the Probate or Letters of Administration

(c) name of the Court or other authority which issued the grant

(d) date when exhibited and by whom

(e) names of the executors or administrators

(f) gross value of the estate

(g) balances or facilities at the Bank

The particulars entered in the register should be checked and initialled by the Manager. The date and serial number in the register in which the record is maintained should be noted on the account opening form/card under the initials of an officer of the concerned department or by the Deputy Manager/Deputy Chief Manager of the Branch or by the Manager in a small Branch. (The production of legal representation does not by itself dispense with the need of proof of death; as far as practicable, death certificates should be insisted upon, before making payment).

120.7 A grant of legal representation issued by any Court outside India should not be registered. A proper grant from a competent Court in India should be requested. A Will of which Probate has not been obtained should not be acted upon and no payment should be made on the strength of the Will only, to the executor(s) until a Probate has been obtained.

120.8 In the case of Probate or Letters of Administration, one of the several executors or administrators can give a valid discharge, in the absence of any directions to the contrary in the Will or the grant. Even so, where a grant is made in favour of more persons than one, a joint receipt or discharge from all such persons should be insisted upon. This rule should be adhered to when payment of balance of account of a deceased is made.

120.9 Where a grant of Probate is made reserving the right of another executor(s) to come in and prove the Will Iater on, only those who have proved the Will and obtained Probate are entitled to receive payment of the balance due to the deceased and give a valid discharge.

120.10 In the event of death of one of the several executors or administrators who have obtained Probate or Letters of Administration, the survivor(s) is entitled to carry on the administration of the estate and to give a valid discharge for payment.

CHAPTER – 2 DEPOSITS GENERAL 54Death of one of the Joint Account Holders

(a) Current/Savings Bank Accounts

121.1 Upon receipt of notice of death of one of the account holders in an account to be operated upon by "Either or Survivor", "Former or Survivor" or "Anyone or anyone of the survivors or the last survivor" etc., it is not necessary to close the existing account and open a new one. The name of the deceased account holder may be deleted after registering his death certificate in the Bank's books and account allowed to be operated upon by the surviving account holder(s) provided the joint account is an ordinary current account (having no borrowing facility) or a savings bank account. It is, of course, open to the surviving account holder(s) to withdraw the entire balance and thereby close the account.

121.2 Branches should observe the following procedure upon receipt of notice of death of a joint account holder :

(a) Date of receipt of notice of death and source of information should be noted in the head of the ledger account.

(b) Cheques drawn by the deceased joint account holder either singly or jointly as per operational instructions and presented after the notice of death should be returned unpaid with the remark "Drawer deceased" or "One of the drawers, Mr./Mrs./Miss ................................................. deceased".

(c) Survivor should be asked to produce death certificate from proper authorities as proof of death of the joint account holder. When the death certificate is received, the name of the deceased joint account holder should be deleted in red ink/ball-point pen from the account opening form/card and ledger account under the initials of an officer (stating the date of death). Usual practice of registering the death certificate should be followed.

(d) If there are no instructions in the joint account to pay the balance to the "survivor" or "the survivors or any one (or two or more, as the case may be) of the survivors or the last survivor", the operation on the joint account should be stopped on receipt of notice of death of a joint account holder and every withdrawal should be allowed only against the joint discharge of the survivor(s) and the legal representative(s) of the deceased joint account holder.

122. It may happen that the legal representatives or the heirs of a deceased joint account holder may serve upon the Bank a notice disputing the right of the survivor(s) to the balance in the account. The proper procedure in such a case would be to explain to the claimants the correct position that the Bank cannot take cognizance of any such notice and that in accordance with the instructions in the account, which forms a term of the contract between the Bank and the depositors, the Bank is bound and liable to honour the cheques signed by the survivor(s) unless an order of a competent Court prohibiting the Bank from honouring his cheques is served on the Bank before the time such cheque(s) is/are presented. Until and unless such a Court order is served upon the Bank, the Bank should honour the cheques of the survivor(s), even if they result in payment of the full balance in the account.

b) Term Deposit Accounts

123.1 Instructions given by the joint account holders at the time of opening the account constitute the terms of contract between the depositors and the Bank; and, any variation in such terms can be made only with the consent of all the parties/surviving parties to the account. In the case of a Term Deposit, the period for which the deposit is accepted is also one of the terms of such contract.

123.2 If the deposit runs upto the date of maturity, payment will be made to the surviving account holder(s).

CHAPTER – 2 DEPOSITS GENERAL 55123.3 Upon receipt of notice of death, Branch should make a note of the fact of death in the books of the Bank for further reference.

123.4 According to RBI directives, in case of Term Deposit Accounts where the account holder is deceased, the claim of the legal heir/representative should be settled first, by allowing simple interest at the appropriate rate, for the period from the date of maturity till the date of settlement, without treating the deposit as having been renewed. The proceeds thus arrived at on the date of settlement can, however, be placed as fresh deposit, under any scheme/plan of deposit by the legal heir-turned-depositor.

123.5 Branches should give the following details (or such of them as may be available) while recommending for consideration premature repayment to the surviving depositor(s) :

(i) Amount of the deposit receipt

(ii) Its due date

(iii) Name(s) of the depositor(s)

(iv) Name(s) of the deceased depositor(s)

(v) Name(s) of the heir(s) of the deceased depositor(s)

(vi) Name(s) of the legal representative(s) (if any) of the deceased

(vii) Whether the heir(s)/legal representative(s) would be willing to give his/her consent to the payment before maturity or is likely to object

(viii) Other facts of the case relevant to the issue

Optional Instructions

124.1 Branches sometimes receive requests for an advance against Term Deposit Receipts or for repayment of the Term Deposit before maturity. In case one of the joint account holders is deceased, such requests cannot be acceded to outright, as this would be tantamount to a change in the terms of the contract, for which the concurrence of the legal representatives of the deceased would be required, and, where legal representation has not been obtained, various formalities, including execution of Stamped Indemnity, would have to be completed.

124.2 With a view to obviating inconvenience to customers in such cases, when opening Term Deposit Accounts or renewing existing accounts, Branches should give to the customers the option of adding the following clause by way of additional instructions. In case of EXISTING Term Deposit Accounts prior to renewal there is no objection if the account holders wish to add these instructions provided all the joint account holders are alive :

"In the event of death of any of the joint depositors prior to maturity of the deposit the Bank will, at the request of the surviving depositor/of all surviving depositors, be at liberty though not bound and at its absolute discretion to add/delete any name or to repay the deposit before maturity or to grant an advance against the security thereof, on such terms as the Bank may in its absolute discretion decide and such repayment before maturity shall constitute a valid discharge to the Bank".

124.3 Branches should, however, note that acceptance of these instructions is entirely at the option of the customer - It is not compulsory. Acceptance or cancellation of this clause should be under the signatures of all the account holders.

124.4 Branches should prepare a rubber stamp reading "Optional Instructions Accepted/Cancelled" and put it on the Deposit Receipt, to indicate whether the aforesaid instructions have been accepted or cancelled.


124.5 The cancellation of the clause should also be under the signatures of all the account holders in order to forestall any disclaimer, by the account holders at a future date, that they were not aware that such additional instructions could be given.

124.6 The effect of the clause is that the depositor on his demise gives up his right to the deposit. Consequently Branches can allow the survivor(s) either to add/delete a name or get repayment before maturity or an advance against the Term Deposit without the usual formalities of obtaining the consent of the legal representatives, executing an indemnity etc.

Death of a Partner in Accounts of Firms

125. Subject to a contract to the contrary, the death of a partner dissolves the firm (Section 42(c) of the Indian Partnership Act, 1932). Under Section 47 of the Act the surviving partners can, notwithstanding the dissolution, continue the business of the firm for the purpose of winding up or completing unfinished transactions. The authority of the surviving partners for continuing the firm's business after its dissolution by the death of a partner is valid only for purposes of winding up of the firm and it is not always practicable to determine easily whether the transactions in an account are for the winding up of the firm or not. Branches should observe the following procedure on the notice of death of a partner :

(a) The date of receipt of notice of death and source of information should be noted in the ledger account under authentication.

(b) Cheques signed by the deceased partner and presented after notice of death may be paid upon confirmation by the surviving partners.

(c) The death certificate from appropriate authorities should be furnished to the Bank as a proof of death of the partner. On receipt of the death certificate, a remark in red ink/ball-point pen stating the date of death should be made in the account opening form/card under initials of an officer against the name of the deceased partner.

(d) Pending the opening of a new account for the reconstituted firm, surviving partners may be allowed to operate the existing account of the firm, provided it is an ordinary deposit account with no borrowing facility.

(e) A cheque or a letter of authority signed by the surviving partner(s) in accordance with the signing instructions in the account should be obtained to transfer the balance from the existing account of the reconstituted firm.

(f) If there are outstanding cheques drawn on the old account, written authority should be taken to debit them to the new account.

Death of `Karta' of Joint Hindu Family Account

126. On the death of the "Karta", Branches should stop operations in the account. The death certificate should be obtained and registered. A new set of account opening forms/cards and a new Joint Hindu Family Letter completed by the new "Karta", under the written consent of all the major co-parceners of the old account, should be obtained and a new account of the Joint Hindu Family opened. The credit balance in the old account should thereafter be transferred to the new account.

Death of a Trustee in Trust Account

127. In case of death of a trustee, it is not safe for the Bank to assume that the surviving or the continuing trustees possess full powers to deal with the trust property. The surviving

CHAPTER – 2 DEPOSITS GENERAL 57trustee(s) has power to act, only if there is nothing to the contrary in the trust deed. Hence, Branches should peruse the trust deed and act accordingly.

Procedures for settlement of claims in respect of deceased depositors

127.A. The modified forms as per the Model Operational Procedure adopted by our Bank to enable the branches to settle the claims are as under :-

i. Application form for payment of balance in the account of deceased depositor when account has nomination or is a joint account with survivorship clause (Appendix XXVIII)

ii. Application form for claim for payment of balance in the account of deceased account holder where no nomination has been made or is a joint account without a survivorship clause (Appendix XXIX)

iii. Indemnity letter regarding payment of balance in the account of deceased account holder (Appendix XXX)

iv. Receipt for full and final settlement of claim (Appendix XXXI)v. Declaration in case funds are settled in favour of a minor (Appendix XXXII)

vi. Check list of documents (Appendix XXXIII)

Branches should obtain the indemnity letter duly executed by all the legal heirs and the sureties of appropriate worth alongwith receipt for full and final settlement of claims. In case the funds i.e. the balance in the deceased depositor’s account are settled in favour of minor, the declaration for utilization of the claim amount for benefit of the minor is to be obtained from the natural guardian. Branches to obtain documents as per the check-list only while settling the claims pertaining to deceased depositors. There is no change in delegated powers for settlement of claims in deceased depositors’ accounts. All papers related to settlement of claims should be preserved carefully.

Time limit for settlement of claims The branches will settle the claims in respect of deceased depositors and release payments to survivors(s)/nominee(s) within a period not exceeding 15 days from the date of receipt of the claim subject to the production of the proof of death of the depositor and suitable identification of the claimant(s) to the bank’s satisfaction. In the case of accounts without survivorship / nomination clause, the claim should be settled within one month from the date on which the requisite documents have been submitted. Branches should strictly adhere to the time norms fixed by the Bank for expeditious settlement of claims.

Treatment of flows in the names of deceased depositorsFurther, in order to avoid hardship to the survivors/nominee(s) of a deposit account, it has been decided to obtain appropriate agreement/authorization(as per the format enclosed) from the survivor(s) / nominee(s) with regard to the treatment of pipeline flows in the name of the deceased account holder and the following procedure will be adopted for pipeline credits :

“ As authorized by the survivors/nominee(s) of deceased account holder, the branch will open an account styled as “Estate of Shri/Smt. _______________” (the deceased), where all the pipeline flows in the name of the deceased account holders will be allowed to be credited and no withdrawals are to be allowed. The balance in such account will be settled with nominee(s)/survivors after completion of such transaction period as agreed in authority letter (Appendix XXXIV).

Customer Guidance and Publicity on the benefits of nomination facility and the survivorship clause for expeditious and hassle free settlement of claims upon the death of depositors

Further, branches should also bring to the notice of the deposit account holders that :

CHAPTER – 2 DEPOSITS GENERAL 58“Nomination facility does not take away the rights of legal heirs on the estate of the deceased. The nominee would be receiving the stock (balance in deposit account) from the bank as a “trustee” of the legal heirs ”

Accordingly, the above clause is being incorporated in Account Opening Form. The other conditions/precautions to be observed in this connection remain unchanged.

Insolvency or Winding up

Accounts of Individuals and Limited Companies

128. Insolvency of an individual customer and winding up of a corporate body customer terminates the authority of the banker to pay cheques or to accept or honour bills or to take any other action or deal with the property on behalf of such a customer. The cheques drawn by the insolvent or his agent dated prior to the date of his being adjudicated as insolvent, should not be paid. After the order of adjudication is made, property of the insolvent vests in the Official Assignee/Receiver/Liquidator.

Joint Accounts

129. The insolvency of a joint account holder terminates the joint relationship and further operations on the account must be transacted by the Official Assignee or Official Receiver and the solvent parties. Cheques drawn by the insolvent account holder must be returned unpaid. Cheques drawn by the solvent account holder(s) alone irrespective of the operational instructions also should be returned if they are not countersigned by the Official Assignee/Official Receiver. Care must be taken not to damage the credit of the solvent parties. The remark on the returned cheques should be "Joint account holder `A' in insolvency" or in similar terms.

Partnership Firm Accounts

130.1 Subject to a contract between the partners, a firm is dissolved on the insolvency of a partner of the firm (Section 42 of The Indian Partnership Act, 1932). The credit balance in the account of the firm, a partner of which has become insolvent, can safely be paid to the solvent partner. If the firm is indebted to the Bank and it is desired to retain the Bank's rights on the insolvent's estate, it is necessary to break (not close) the firm's account. Cheques drawn by the insolvent partner should be paid upon confirmation of the solvent partners.

130.2 A firm is dissolved by the adjudication of all the partners or all the partners but one as insolvent (Section 41 of the Indian Partnership Act, 1932). In such a case, all operations on the firm's accounts and also on the private accounts of the partners should be stopped, whether the accounts are in debit or in credit.

Insanity or Lunacy of Account Holders

131. Under Section 11 of the Indian Contract Act, 1872 persons of unsound mind are disqualified from contracting, but the disqualification does not apply to contracts entered into or ratified by lunatics during the periods of their sanity.

Accounts of Individuals

132. When the Bank comes to know of its customer's lunacy, all operations on his account, irrespective of whether the account is operated upon by customer himself or by his agent, should be suspended until receipt of an order from the Court, or definite proof of customer's sanity has come into the hands of the Bank. When lunacy order is received, a careful note

CHAPTER – 2 DEPOSITS GENERAL 59should be taken on the Bank's record and the account may be allowed to be conducted in accordance with the instruction, if any, contained in the Order.

Joint Accounts

133. The insanity of a party to a joint account has the effect of stopping the account and the balance must be held to the joint order of the other account holder(s) and the receiver in lunacy.

Partnership Firm Accounts

134. In the event of a partner of a firm becoming insane, the proper course would be to advise the other partners to apply to the Court for an interim injunction restraining the insane partner from meddling with the affairs of the firm, or to instruct the Bank to allow operations on the account only on joint signatures of all the remaining partners (i.e. other than the insane partner).

Settlement of Claims received from the Nominee / Legal Heirs of missing persons maintaining deposit account with the Bank

134.1 At present, claims received from the Nominee/Legal Heirs of a missing person maintaining deposit account with the Bank are settled as per the Order of a Competent Court.

134.2 The settlement of claims in respect of missing persons is governed by the provisions of Section 107/108 of the Indian Evidence Act, 1872. Section 107 deals with presumption of continuance and Section 108 deals with presumption of death of a missing person. As per the provision of Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of seven years from the date of a person being reported missing. The Nominee/Legal Heirs of the missing person have to raise an express presumption of the depositor/subscriber under Section 107/ 108 of the Indian Evidence Act, before a Competent Court. If the court presumes that the missing person is dead, it issues an order for settlement of the claim in respect of the missing person/depositor and accordingly the claim is settled by the Bank.

134.3 With a view to avoid inconvenience and undue hardship to common public in obtaining a court order, it has been decided to fix the threshold limit of Rs.1.00 Lac for settlement of claims in deposit accounts without insisting upon a court order. Indemnity Documents to be obtained in such deposit accounts are as under :

Amt. of balance upto Rs.5,000/-

Unstamped Indemnity letter signed by the claimants without any surety.

Above Rs.5,000 to Rs. 25,000/-

Stamped Indemnity letter signed by the claimant(s) and one surety of standing, good for the amount involved.

Above Rs.25,000/- to Rs. 1 lac

Stamped Indemnity letter signed by the claimant(s) and one surety of standing, good for the amount involved.

134.4 The documents to be obtained from the Nominee/Legal Heirs/Claimants, along with Application Form for settlement of dues in respect of missing persons are as under : i. Copy of FIR lodged with Police authority.

ii. Certificate issued by Police authorities that such missing person is not traceable.

iii. The report of non-traceability of missing person by the Police should be of a date after 7 years from the date of registration of FIR and enquiry by the Police authority.

iv. Declaration by the Nominee /Legal Heirs of the missing person (depositor) that the missing person has not been heard of for the last seven years and also their indemnity as given above.

CHAPTER – 2 DEPOSITS GENERAL 60v. Confirmation about legal heirs (in case of settlement of claim with the legal heirs).

134.5 For an amount of deposits exceeding Rs.1.00 Lac, the Nominee/Legal Heirs of a missing person maintaining a deposit account, should apply to a Competent Court under Section 107/108 of the Indian Evidence Act and if the Court is convinced and satisfied, it can presume that depositor/missing person is dead and then the request of the claimants can be considered by the Bank on the basis of the Court Order; as per the existing procedure in vogue.

134.6 However, in case of any dispute arising amongst the Legal Heirs or Nominee and any other person claiming the balance amount in the account of missing person, the Bank should insist upon claimants to produce an Order from a Competent Court irrespective of the balance in the account, even if the balance is Rs.1 Lac and below.

134.7 Copies of the following Forms to be obtained from Nominee / Legal heirs are enclosed for ready reference: i. Application form for payment of balance in the account of missing person/depositor when account has nomination or is a joint account with survivorship clause (Appendix XXXV)

ii. Application form for claim for payment of balance in the account of missing person/account holder where no nomination has been made or is a joint account without a survivorship clause (Appendix XXXVI)

iii. Indemnity letter regarding payment of balance in the account of a missing person/account holder (Appendix XXXVII)

iv. Receipt for full and final settlement of claim (Appendix XXXVIII)

v. Declaration in case funds are settled in favour of a minor (Appendix XXXIX)

vi. Check-list of Documents (Appendix XXXX)

vii. Settlement of claims in various types of accounts / Facilities (Appendix XXXXI)

134.8 Branches will obtain the above new Forms with immediate effect and documents as listed above for settlement of dues of missing persons. The branches should obtain an Indemnity Letter duly executed by all the Legal Heirs and the Sureties of appropriate worth, along with a Receipt for full & final settlement of the claim. However in case of settlement with the nominee, there is no need to obtain indemnity letter. Further, if the dues (balance in the missing person/depositor’s account) are settled in favour of a minor, a Declaration for utilization of the claim amount for the exclusive benefit of the minor should be obtained from the natural guardian. Branches should obtain documents as per the check list only while settling claims pertaining to a missing person maintaining a deposit account. We would like to advise / clarify that the Delegated Powers for settlement of claims in respect of a deceased depositor would be also applicable in cases of a missing account holder. Please also note importantly that all papers pertaining to settlement of claims in respect of a missing account holder should be preserved carefully.

134.9 Further, branches should note to ensure that all claims received by them in respect of missing persons are settled and payment thereof be released to the Nominee / Legal Heirs within one month from the date of submission of requisite documents. Branches should strictly adhere to the norms fixed by the Bank in this regard, for expeditious settlement of claims in respect of a missing account holder.

VI. MISCELLANEOUS INSTRUCTIONS

Filing and Custody of Account Opening Forms/Cards

135. Normally each account opened at a Branch is given a serial number department wise and the specimen signature cards should be arranged in the filing cabinets in their respective

CHAPTER – 2 DEPOSITS GENERAL 61serial order. But, depending on the volume of business at a Branch and operational convenience, Branches may adopt different methods of filing of these cards. It is, however, desirable to arrange these cards in a serial order where the accounts are opened in the ledgers in the serial orders of the number of accounts, i.e., savings bank, etc. Where the accounts are opened in alphabetical order (i.e. current accounts), it is obviously convenient to arrange the cards in alphabetical order. The account number should be noted on the specimen signature cards before they are filed. The cards must be maintained in good condition.

136. The signatures should be scanned immediately and the same should be authenticated.

137. When an account is closed, a rubber stamp "Account Closed" should be affixed on the specimen signature card under the date and initials of an officer in such a manner as not to obliterate the specimen signature(s). The signatures of closed accounts should be immediately deleted from the system.

Filing of Current Account Opening Forms

138. Branches should take proper care in filing of current account opening forms.

Custody of Current Account Opening Forms

139. As the current account files contain account opening forms bearing specimen signatures etc., of account holders, it is absolutely necessary that these files, at all times, remain in the custody of an officer of the Branch. It is of paramount importance that no unauthorised person should be allowed to have an access to these files. The files, when they are not in use, must be kept locked in a steel cabinet. The concerned officer at the Branch should once in a year, verify that the account opening cards of all operative accounts (live accounts) are available and that they are properly arranged.

Custody of Other Deposit Account opening Forms/Cards

140. The care and precautions indicated in the above paragraph 139 apply equally to the custody of account opening forms/cards of other deposit accounts.

Paying-in-slips

141.1 Paying-in-slips are provided by the Bank for deposit of money for credit of deposit accounts. Care should be taken to see that the paying-in-slips bear the name of the Branch. Normally, the name of the Branch will be printed thereon, but, if it is not so printed, Branch rubber stamp should be affixed thereon. All particulars on the slip should be properly and carefully filled in by the depositor who should sign at the place "By.......". In the case of paying-in-slips for Term Deposits, other particulars such as term of deposit, rate of interest, etc., should also be filled in by the depositor.

141.2 The customer should be advised to preserve the counterfoil of the paying-in-slip carefully to be able to exchange it with the deposit pass book/deposit receipt/certificate etc. in due course. On the paying-in-slip, the number of account, where applicable, should be written legibly. Where, in a savings bank account, moneys are accepted without pass book accompanying paying-in-slip, the paying-in-slip and counterfoil should be rubber stamped "without Pass Book" by the cashier receiving such deposits.

Receipt/Payment Scroll Book

142.1 All cash payment cheques/withdrawal forms and other payment instruments exceeding the amounts stipulated, depending upon the class of branch, should be entered in payment Scroll Book. All cash receipts must be entered in the receipt Scroll Book before cash is accepted by Cash Department. (Also refer Chapter on Cash and Clearing for detailed instructions.)


Tokens

143.1 There are two types of tokens, viz., Payment Tokens and Cheque Book Tokens. The payment Tokens for current and savings bank deposits accounts are of different shape and cast in different metals. These are to be issued by the ledger keepers to the account holders/payees presenting cheques/withdrawal forms for payment accompanied by pass book, wherever applicable. Each Branch is supplied with an adequate number of the two types of tokens with the name of the Branch and the serial number engraved thereon. The tokens should remain in the custody of Cash Department overnight. Care should also be taken to see that the Cheque Book Tokens are also kept in proper custody overnight.

143.2 The Cheque Book Tokens are to be issued by the ledger keepers when new cheque books in current and saving bank accounts are requisitioned by the account holders. These tokens are issued for the purpose of identifying the persons calling at the Branch to receive the cheque books.

143.3 Every morning, cash Department should issue token to ledger keepers and other Departments against their receipt in the Tokens Register maintained by Cash Department. Each ledger keeper should check the tokens he receives before signing for them in the Token register. Ledger keepers should keep the token in their drawers during the day so that they are not accessible to anybody else; they should not be left on the counter. If a ledger keeper is away from his counter for any reason, he must lock his drawer in which the tokens are kept; the ledger keeper who acts during his absence must use tokens received by him. At the end of business hours, the unissued tokens left with the ledger keepers and Departments should be returned to Cash Department after entering the distinctive numbers of the tokens returned in the appropriate column in the Tokens Register. (Also refer Chapter on Cash and Clearing.) 143.4 In case of loss of cheque Book Token/Payment Token a penalty charge of Rs. 115/- should be recovered from the customer. Relaxations regarding the use of cheque Book Tokens

144.1 The practice of issue of cheque Book Tokens may be dispensed with, the prior approval of the higher Controlling Authority, at Branches where

(a) the number of cheque books issued daily is small,

(b) The cheque book are issued on the spot and,

(c) The Identity of the person to whom the cheque book is issued, is established to the satisfaction of the Branch. it is only if these pre-requisites are fulfilled, the Branches may forward such requests to higher controlling authority after weighing the consequences of eliminating the precautionary measure. There is possibility that in the absence of cheque-book tokens, cheque books might be delivered to unauthorised persons. This should be borne in mind before putting up such a request for waiver of the requirement of issue of cheque book tokens. It should, however, be noted that except those Branches which have been specially granted permission to dispense with the practice of issue of cheque book tokens, all branches have to ensure that the instructions given under paragraph 143 are followed meticulously.

144.2 The position may be reviewed once in six months, say, during May, November and recommendation made to the Zonal Manager for consideration of the waiver or otherwise.

Change in the Specimen Signature of Account Holder

145.1 When it is noticed that an account holder's signature has undergone a drastic change from the specimen lodged with the Bank, it is desirable to obtain a fresh specimen signature card duly completed by the account holder in the presence of the officer. It is important to record the date on the card when such specimen signature is obtained. The officer concerned must initial against the fresh Specimen Signature on the new card/slip. The old specimen

CHAPTER – 2 DEPOSITS GENERAL 63signature card/slip should then be marked "cancelled" with two parallel lines across the card/slip with a remark under initials of the officer, that fresh signature obtained on (date). The old card/slip may then be stapled behind the new card/slip. The new signature should be scanned immediately and authenticated.

145.2 The account holder may, in certain circumstances, also desire to change the mode of his signature in which case he should personally call on the Bank. He should be properly identified and then a fresh signature should be obtained on specimen signature card/slip. The same procedure of stapling and initialling in new/old specimen signature card/slip scanning signature mentioned above should be followed in this case also. 145.3 Noting of the date on the new specimen signature card/slip and initials of the concerned officer against the fresh signature are of great importance, in the absence of which it may be difficult at a future date establish when and by whom the new specimen signature was obtained.

Change in Address of Account Holder

146. Change in address of account holder should be noted only on his written authority. The signature of the account holder on the letter advising change in address should be verified by the cancelling officer. The original address in the account opening form/card, the ledger page and pass book (where applicable) should be neatly ruled through and the new address written immediately below in the relative column in red ink/ball point pen, giving reference to date of customer's letter, under initials of the ledger checking officer. It should be ensured that the change in address of the account holder is made only in such accounts indicated by the customer specifically, but not in all accounts as a matter of routine. In case of any doubt about the intention of the account holder regarding the change of address in some or all accounts, a reference should be made to him.

146. A. It is observed that over a period of time, addresses and other contact details of many of our customers have changed. To correct this situation, get a customer update form (APPENDIX XXVII) filled from the customers and obtain. Since all the formalities regarding KYC Norms are completed and due diligence is already conducted at the time of opening of the account; Branch know the identity of the customer. Hence in the case of existing accounts, which have been satisfactorily conducted for more than six months, it is not necessary to ask for address proof if the customer wishes to change his address in Bank’s records. all such requests should be signed by the customer/s and duly verified with customer/s signatures on record. All such requests should be properly filed and preserved so that they are available for future scrutiny, if required.

Staff Accounts

147. Deposit accounts opened in the names of the members/ex-members of Bank's staff/widows of ex- members of Bank's staff/ officials taken on deputation, either singly or jointly, but only with their close relatives (i.e. father, mother, husband, wife, brother, sister, son or daughter) are termed as "Staff Accounts" for the purpose of concessional rates of interest on their deposits. Ex-members of the staff are those who have retired from the Bank's service either on attaining the superannuation age or seeking voluntary retirement but NOT those who have resigned from the Bank's service or whose services have been terminated by the Bank or employees & retired compulsorily.

148. In case of Current Accounts opened in the name(s) of the staff/relatives of staff members the following procedure should be adopted :

(a) details of all Current accounts in the name(s) of close relatives of staff members operated and maintained at a Branch should be reported to the next Controlling Authority. The format for reporting is given in Appendix XXIII.


(b) Branches which do not have any such account should submit a `NIL' statement.

(c) The branches should also submit to the next Controlling Authority the particulars of operations in these accounts every quarter as per the format given in Appendix XXIII.

(d) The Branch Manager is the authority to authorise the opening of such accounts.

(e) All credit vouchers relating to all staff accounts including paying-in-slips should be countersigned by an officer of the Branch.

(f) The current accounts of all staff members held in their names either singly or jointly with any other person should be checked by an officer of the Branch.

(g) The Manager should carry out periodical scrutiny or test check of such accounts.

Concessional Rate of Interest

149.1 The Bank allows to the staff 1% p.a. higher than the normal rate of interest paid to the public in different types of deposits which includes NRE/FCNR deposits, as permitted by Reserve Bank of India. However a declaration should be obtained that the monies deposited/to be deposited in such accounts belong to the account holder(s) (specimen: Appendix XXI). If the declaration in writing as required is not forthcoming from the staff account holders, normal rate of interest payable on the relevant category of deposit account(s) to the members of public should alone be allowed.

149.2 The benefit of additional interest of 1% is allowed to staff members for NRE/FCNR Deposits provided other terms and conditions of deposits under NRE/FCNR Schemes are fulfilled.

149.3 The benefit of concessional rate of interest should be allowed in a joint account only where the account holder(s) is a close relative as mentioned in paragraph 147 above. An account opened in the name of a minor jointly with the staff member (who may be the guardian of the minor) will be entitled to get concessional rate of interest only if the minor belongs to the family of the staff. Deposit Accounts opened singly in the names of minor children of the staff member with the latter as natural guardian are not eligible for the benefit of concessional rate of interest, even if the required declaration of ownership of the monies deposited, is given by the staff member.

149.4 Interest will not be paid in current accounts whether in the individual name of the member of staff or accounts of staff co-operative societies, staff sport clubs, staff housing societies, staff provident fund, etc.

149.5 Branches must, before accepting deposits in staff accounts, reasonably be satisfied that the deposits belong to members/ex-members of the Bank's staff/widows of the ex-members of the staff and that the deposits in the account are commensurate with the status of the concerned staff member and his likely savings. Branches are not permitted to allow additional interest on deposits accepted from minor children of the deceased employee. However, in the case of term deposit standing in the joint names of the employee with his/her minor child, the additional interest of 1% p.a. would continue till the date of maturity of the original deposit irrespective of the intervening incident like death of the employee. In the accounts of officials on deputation working with the Bank, the concessional rate of interest can be allowed on the monies representing normal savings - not in excess of say, two/three months' wages, etc.

149.6 The benefit of concessional rate of interest on deposits of erstwhile staff accounts of the following categories should be withdrawn and normal rates of interest should be made applicable :

CHAPTER – 2 DEPOSITS GENERAL 65(a) those who have resigned from the Bank's service,

(b) whose services have been terminated by the Bank,

(c) those who were taken up in the Bank on deputation but have reverted back to the original place of their service,

(d) those employees who have retired compulsorily. (In case of Term Deposits, normal rates of interest would be applicable on renewal, if any, of the deposits).

149.7 The interest payable on fixed deposits as also on savings bank deposits in the names of the members/ex-members of the Bank's staff should be calculated at the prescribed rates, i.e., quarterly or longer rests, as at present and not on actual at monthly intervals.

149.8 Normally additional interest of 0.5 – 1 % is being offered to senior citizens on the card limits for various CDAC accounts. Ex-staff members who are senior citizens are not entitled for additional interest as applicable to senior citizens since they are already paid additional interest.

Payment of Cheques/Withdrawal Forms of the Members of Staff at a Branch other than at which the Account is Maintained

150.1 Payments of cash to members of the Bank's staff, other than those on official duty, against the Cheques/ Withdrawal Forms drawn on their accounts with other Branches are strictly prohibited.

150.2 The officers deputed to other Branches on special or audit duties may be given letters of authority to encash their cheques, by the Department/Office concerned and encashments by such members of staff should be permitted against properly issued authority letters. These officers should ensure that at the time of presenting a cheque for payment at another Branch, there is sufficient credit balance in the account at the Branch where the account is maintained.

150.3 When such encashment of Cheques/Withdrawal Forms by the Staff on Special/ Audit duties is permitted, following procedure should be followed :

(a) the facility should be extended only against a proper authority letter and the employee's written request which should confirm that he has enough funds in the account and that the Cheque will be honoured on presentation at the drawee Branch.

(b) the payee Branch should send the Debit Note with the encashed Cheque/Withdrawal Form to the drawee Branch without delay and follow-up with the drawee Branch until the realisation advice is received.

Temporary Overdraft

151. No temporary overdraft should be granted to an employee of the Bank.

Garnishee Order

152.1 The Bank is prohibited and restricted from honouring the customer's cheques after a Garnishee Order (Prohibitory Order) issued by a competent Court in execution of a decree in a Civil Court has been served on the Bank. (Also refer paragraph 152.3). Whether Garnishee Order covers the whole of the credit balance of the account concerned or only a part of the amount will depend on the terms of the Order. If no amount is specified in a Garnishee Order, then the Order will apply to the whole amount but if restrictions in the Garnishee Order apply only to a named amount, the Bank may earmark such a sum and allow the customer to operate on the account for the balance. Garnishee Order applies to the debts actually due from the Bank to the customer on the date of receipt of the Order. The amount of a Term Deposit can be attached before the date of maturity but can be paid only on or after the date

CHAPTER – 2 DEPOSITS GENERAL 66of maturity. The order does not affect future debts. Upon service of a Garnishee Order, the time and date of the receipt thereof should be noted prominently in the account concerned. The original Garnishee Order should be compared carefully with the copy which should be kept on the Bank's record.

152.2 Upon the receipt of a Garnishee Order, all accounts in a customer's name must be taken into consideration and a debit balance may be set off against the credit balance before arriving at the attachable sum. If a Garnishee Order specifies one judgement debtor, a joint account is not attached. This means that a Garnishee Order citing a sole judgement debtor will not attach a joint account in which such a debtor is a constituent. In such a case an affidavit is required to be filed in Court stating that there is a joint account in the name of the judgement debtor and another person and, therefore, the debt in the account is not attachable. This can be done with the help of a junior Advocate.

152.3 Where a Garnishee Order has been served and cheques have been received through clearing in the day, it is the practice to pay the cheques, but Branch Managers should use their discretion and pay the cheques with circumspection; where the credit balance includes uncleared effects, the amount of such items is not attached unless there is an agreement to allow drawings before clearance.

152.4 The attachment order relates to the funds in the account as on the date and time of receipt of the Order which are immediately payable to the account holder. When the Bank receives Garnishee Order, it should advise the customer of its receipt and that cheques drawn by the customer will be honoured only if the balance left after satisfying Garnishee Order is adequate to meet them.

152.5 lf the circumstances demand, the cheques presented after service of the Order should be returned with the answer "Refer to Drawer".

152.6 Moneys in a Trust Account where the judgement debtor is a trustee are not attachable under the Order.

152.7 The banker is not entitled to deduct interest and commission charges accruing from any attachable balance.

Notice from Income Tax Authorities

153.1 A notice under Section 226(3) (ii) of the Income Tax Act, 1961 may be issued in writing by the Income Tax Officer to any person who holds or may subsequently hold any money for or on account of the assessee jointly with any other. For the purpose of this Sub-Section, the shares of the joint holder in such account shall be presumed to be equal until the contrary is proved.

153.2 In terms of this Section and provisions thereof, an Income Tax Officer by a notice in a prescribed form may call upon the Bank to pay to him the amount due to him by way of arrears of income tax super tax/penalty/ interest/fine by an assessee who may be a customer of the Bank. In law, such a demand is deemed to have been made under the authority of the tax payer and the receipt of Income Tax Officer will constitute a good and sufficient discharge of the Bank's liability to the account holder concerned. The Bank should, therefore, pay the amount demanded by the Income Tax Officer forthwith, subject to adhering to the requirements of the following paragraphs and advise the account holder(s) suitably.

153.3 When a notice under this Sub-Section is issued to a banking company, it shall not be necessary for any pass book, deposit receipt or other documents to be produced for the purpose of any entry, endorsement, etc. before payment is made, notwithstanding any rule, practice or requirements of the bank to the contrary.

153.4 As per the I. T. Act 1961 and guidelines prescribed by the Central Board of Direct Taxes and the Ministry of Finance, the I. T. Authorities ought to call for information which is

CHAPTER – 2 DEPOSITS GENERAL 67related to a specific assessee. They ought not to call for information of an absolutely roving nature in the case of banks. So on receipt of notices and/or summons of roving and fishing nature, the Zones/Branches should approach the concerned I. T. Authorities or their senior officers and request that the notice/summons either be withdrawn or modified. Under no circumstances such notices be ignored as it would otherwise expose them to penalty for non-compliance.

153.5 Sub-Section(1) of Section 131 of I. T. Act 1961 confers the I. T. Authorities the power to ask for information in respect of pending proceeding. The power under Section 131 (1A) of I.T. Act 1961 can be exercised even in absence of pending proceedings but the presence of a "reason to suspect" is a pre-condition to exercise this power.

153.6 Section 133 (6) of I. T. Act 1961 empowers specified I. T. Authorities to require any person including a banking company or any officer thereof, to furnish information in relation to such points or matters as, in the opinion of the authority will be useful for, or relevant to, any enquiry or proceeding under the Act. The power in respect of an enquiry, in a case where no proceeding is pending, shall not be exercised by any I. T. Authority below the rank of Director or Commissioner as the case may be.

Notice of Single Accounts

154. If the assessee has an account in his single name, the entire balance in the account or the amount of arrears of income tax etc., mentioned in the notice, whichever is less, should be paid to the Income Tax Officer.

Notice in Joint Accounts

155.1 If the assessee has a joint account in the names of himself and one other person, half the balance in the account as on the date of receipt of the notice or the arrears of income tax etc. mentioned therein, whichever is less, should be paid to the Income Tax Officer. This is irrespective of whether the account is operated jointly or by either or survivor of the depositors.

155.2 If the account is in three names and the assessee is one of them, one-third of the balance in the account as on the date of receipt of the notice or the arrears of income tax etc., mentioned therein, whichever is less, should be paid to the Income Tax Officer, irrespective of the mode of operation. This is because under this Section, the share of each joint account holder is presumed to be equal unless the contrary is proved. The Bank does not ordinarily have any notice of the actual share of each account holder; it will have to proceed on the presumption mentioned in the Section.

Notice in Term Deposit Account

156. If the assessee has a Term Deposit account, the amount thereunder does not become payable until the date of maturity of the deposit. The notice under Section 226 (3), however, calls upon the Bank to pay to the Income Tax Officer even such moneys as may subsequently become due from the Bank to the assessee-account holder. The Bank will, therefore, have to pay the requisite amount on or immediately after the date of maturity. On receipt of such notice, Branches should immediately inform the account holder of having received the notice and that the Bank will make the payment on the date of maturity to the Income Tax Officer., unless the Bank receives an intimation from such an office withdrawing the notice. The account holder may then, if he so thinks fit, make some arrangement with the Income Tax Officer and have the notice to the bank withdrawn, if possible. If no such withdrawal is intimated, the payment will have to be made on the date of maturity. If the Term Deposit is joint, the payment will be on the pro rata basis.

Advice to Account Holders

CHAPTER – 2 DEPOSITS GENERAL 68157. Under this Section, the Income Tax Officer is required to send a copy of the notice to the assessee. Even then the Bank should inform the account holder(s) before and after making the payment to the Income Tax Officer.

Notice in Advance Accounts

158. If an assessee has, in addition to deposit account(s), borrowing facilities whether singly or jointly with the Bank and the outstanding debit balance(s) in advance account(s) is more than the balance(s) of his deposit account(s), the Income Tax officer should be informed of the balances in the account(s) and the Bank's right of lien or set off and that the Bank is unable to comply with the notice. The customer should be immediately informed of the Bank's claim. If the Income Tax Officer should contest the Bank's right to such security and/ or lien or set off, immediate reference should be made to Head Office for further instructions, giving full details and forwarding copies of all the relevant correspondence. In case the outstanding debit balance in the borrowing account(s) is lower than the deposits of the assessee, the balance available after full liquidation of the advance should be paid to the Income Tax Officer.

158.1 Overdraft Accounts - An overdraft (to the extent the credit facility is not utilised) does not represent money due to the assessee - customer nor can the bank be said to be holding any money for or on account of the assessee. However, if the account has a credit balance then the bank can be said to be holding money for or on account of the customer and the credit balance is attachable.

158.2 Other Loan Accounts - If there is credit balance in the account then the bank can be said to be holding money for or on account of the customer and the credit balance is attachable.

Notice in Accounts of Deceased Customers

159. If a notice is served on the Bank under Section 226(3) of the Income Tax Act, 1961, attaching moneys in respect of the tax dues of the deceased account holder in a joint account to be operated upon in anyone of the following manner viz. :

(a) Either or Survivor

(b) Both of us or Survivor

(c) Anyone or Survivors

(d) Any Two or Survivors

(e) Former or Survivor

the Bank would be justified in refusing to pay in response to the notice. The Bank's liability would be to make payment of the entire amount to the survivor(s); provided such notice is received after death of the joint account holder from whom the tax recovery is to be made. The reason to be given for such refusal should be that on the date of service of such notice no amount was due and payable by the Bank to the estate of the deceased. . Banker's Lien

160.1 A lien is the right to retain property belonging to a debtor until he has discharged a debt due to the retainer of the property.

160.2 Banker's lien is a general lien covering all securities, documents and things deposited with him as a banker by a customer or coming into his possession in the ordinary course of his business as the banker of his customer.


160.3 The lien does not operate if there is an express contract or circumstances that show an implied contract inconsistent with lien. For instance, deposit of securities for the purpose of Safe Custody is a purpose inconsistent with the banker's lien.

160.4 In the absence of a contrary agreement, a banker has a lien on all bills, cheques and notes sent to him by a customer for collection.

160.5 Banker's lien is sometimes described as "an implied pledge". This means, the banker has power not only to retain but also to realise the securities over which he has a lien. But before doing so, he should give reasonable notice to his customer.

160.6 Strictly speaking, there is no right of lien on money in a customer's account. Bankers, however, have a right of set off on the moneys in Deposit Accounts.

Banker's Right of Set Off

161. The right of set off is also called the right to combine Accounts. The banker can set off the balance or money in a Deposit Account against the debt due to him in an Advance Account of the customer, subject to the following :

(a) The debt due to the banker must be a sum certain due and recoverable at the date of setoff. This means, a notice of demand calling upon the customer to repay the advance should be given before the right is exercised. The notice should state that on the failure of the borrower to repay the debt within the time stipulated, the Bank will take all or any of such steps for the recovery of the advance as the Bank is entitled under the security documents and law, including the exercise of its right of set off.

(b) If the customer has one account of his own money and another as Trustee, the banker cannot set off a credit balance in the Trust Account against the debit balance in his personal account.

(c) There should not be any agreement, express or implied, inconsistent with the right of set off.

(d) The creditor and the debtor should be one and the same person or one and the same set of persons. If the Deposit Account is in the names of A and B of whom only A is indebted to the Bank, no right of set off can be exercised.

Secrecy of Customer's Accounts

162.1. It is an implied term of the contract between the banker and the customer that the former will not disclose the condition of his customer's account to a third-person or party without the express or implied consent of the latter except on reasonable and proper occasions. The obligation to observe secrecy does not end even with the closing of the customer's account. Branches should, therefore, take scrupulous care not to disclose the state of customers' accounts to the third-party without the authority of the customer even if the person approaching is known to the Bank and/or to the customer. For example, if a customer has his "personal" and "business" accounts at a Branch and if he deputes to the Bank an employee in connection with the "business" account, no particulars of his "personal" account should be given to the employee for passing on to the customer.

Furnishing of data - Violation of Secrecy Obligations

162.2. Branches receive, from time to time, requests for data/information on certain aspects of their business from Government and other agencies for academic / theoretical purposes. In this connection, Reserve Bank of India directives are :

"The bankers' obligation to maintain the secrecy arises out of the contractual relationship between the banker and customer, and as such no information should be divulged to third

CHAPTER – 2 DEPOSITS GENERAL 70parties except under circumstances which are well defined. The following exceptions to the said rule are now accepted.

(a) Where disclosure is under compulsion of law

(b) Where there is a duty to the public to disclose

(c) Where interest of bank requires disclosure and

(d) Where the disclosure is made with the express or implied consent of the customer.

The banks should, therefore, appreciate the implications of furnishing information that would violate the provisions of secrecy in the background or circumstances stated above."

In view of the above, Branches should note that whenever such requests are issued, they should be satisfied that the information being sought is not of such a nature as will violate the provisions of the laws relating to secrecy in the banking transactions. In cases in which branches have doubts whether the furnishing of information might violate secrecy provisions, they should get specific legal advice from the Zonal Offices.

Closing of Accounts

163.1. Whenever an account holder desires to close an account, a request in writing duly signed by all the account holders should be obtained.

163.2. It should be ensured that all unused cheque forms issued to a current account/savings bank customer whose account is closed, are returned to the Bank immediately or within a reasonable time after the account is closed, as such unused cheque forms are likely to be used for fraudulent purposes. If the unused cheque forms are not returned even after two reminders, the question of further reminders is left to the discretion of Manager or at larger Branches, of the Deputy Manager/Deputy Chief Manager. The bottom right-hand (i.e. the signature space) of each cheque form returned should be torn off; only whole cheque books returned should be used for pay slips or for issue of loose cheques to account holders. (Cheques of some foreign Branches bear revenue stamps. In the event the cheques of foreign Branches with revenue stamps are returned, they should be sent without mutilation to the Branch of issue so that it can claim refund of stamp duty).

163.3. A remark "Account Closed" with date (on which the account was closed) should be made (or rubber stamped) under the initials of the ledger checking officer on the relative account opening form/card in such a manner as not to obliterate the specimen signature(s). A similar remark (with date) should be made under the initials of the ledger checking officer in the Cheque Book Delivery Register against the serial number of the cheque book issued with distinctive numbers of the unused cheque forms which are returned by the current/savings bank account holder. The specimen signature cards of such closed accounts should be removed from the cabinet in which such cards are filed and kept on record separately.

163.4. When an account is closed, the account holder should be asked to produce the pass book to the Bank (where applicable). It should be written up to date and returned to him marked "Account Closed" at the foot of the last entry and on the front cover.

163.5. When an account is closed, the plastic cover of the pass book issued, if any, should not be removed while returning the pass book.

163.6. Charges for closure of a/c should be recovered as advised by HO from time to time (presently Rs.125/-)

Care and Custody of Bank's Books

CHAPTER – 2 DEPOSITS GENERAL 71164.1. No unauthorised person should be allowed access to Ledgers, Balance Books, Extract Books, Supplementary Cash Books, etc. These should remain in the custody of an officer and be kept safely locked when not in use. The Manager should ensure personally that all these books and other records of the Branch are, under no circumstances, left lying outside overnight on the counters etc. These books should be kept overnight in strong rooms/fire proof safes or almirahs where available; otherwise they should be stored in other steel cupboards/almirahs.

164.2. These books are important records of the Bank and should be very carefully preserved. Balance Books and Extract Books should be kept neat and in good order. They might prove useful to the Bank to reconstruct the records, if necessary. All ledgers when they become loose by constant use should be rebound even if due for re-writing.

Service to Senior Citizens

165.1. Senior members of the society deserve a special treatment in any service industry, looking to their age, physical limitations, temperament and above all the service they have rendered to the society in their prime days. Branches should hence take adequate care in providing services to senior citizens and make necessary arrangements to provide efficient counter service. Senior citizens should not be made to wait in the long queues for availing services or completing certain banking transactions. The following points may be noted in this context:

(a) Senior citizen is a person above age of 60 years. (Branches should not question the eligibility if any customer is claiming to be so;)

(b) Branches with large number of Pension accounts may arrange separate counter while disbursing pensions during the first week of the month.

(c) Normally, queues are formed in the banking hall for withdrawal of cash, deposit of cash, deposit of cheques, updating of pass books, tendering taxes challans, share applications, Electric bills, Telephone bills etc. Senior citizens should be exempted from facing such queues. Staff members should be directed to entertain such customers ensuring minimum inconvenience to other customers.

(d) All staff members should treat senior citizens with courtesy and respect. They should be given patient hearing invariably and guided properly in completing their banking transactions. Manager, Floor Manager should take extra care in attending to disabled senior citizens.

(e) Complaints/Grievances or any representations from senior citizens, verbal or written should be dealt with as far as possible on the spot. Arguments/dispute with the senior citizens should be avoided.

165.2. While dealing with aged customer, (senior citizens) Branches are likely to come across some very old, sick and incapacitated customers having pension or regular singly operated accounts or such persons may approach for opening new accounts. The situation may arise sometime when account holder may not be able to operate his account himself/herself or through a representative for being unable to sign cheque or withdrawal slip due to certain physical incapability. To overcome such situations and help the distressed customer, the following guidelines should be uniformly adhered to by Branches :

A) The cases of sick/old/incapacitated account holders fall into following categories :

a) An account holder is too ill to sign a cheque/withdrawal slip and cannot be physically present in the Branch to withdraw money from his bank account but can put his/her thumb impression on the cheque/withdrawal form and

b) An account holder who is not only unable to be physically present in the Branch but is also not even able to put his/her thumb impression on the cheque/withdrawal form due to certain

CHAPTER – 2 DEPOSITS GENERAL 72physical defect/incapacity.

B) With a view to enabling the old/sick/incapacitated customers as described above to operate their single accounts, the following procedure should be followed:

a) Where thumb or toe impression of the old/sick/incapacitated account holder is obtained, it should be identified by two independent witnesses known to the branch, one of whom should be a responsible bank official.

b) Where the customer cannot even put his/her thumb impression and also would not be able to be physically present in the Branch, a mark can be obtained on the cheque/withdrawal form which should be identified by two independent witnesses, one of whom should be a responsible bank official. This mark can be placed by the person in any manner. It could be the toe impression as suggested above, the point to be noted is that there should be physical contact between the person's limb and the document i.e. cheque or withdrawal form.

c) The customer should also be asked to indicate as to who would withdraw the amount from the branch on the basis of cheque/withdrawal form as obtained above and that person should be identified by two independent witnesses. The person who would be actually drawing the money from the Branch should be asked to furnish his/her signature to the Branch.

165.3. While allowing operations in the account as spelt out hereinabove, certain precautions should be taken to avert perpetration of frauds or misappropriation of funds in such accounts, which are generally as below :

i) A remark /note should be made in bold letters on the specimen signature card and the Ledger folio or registered in the computer operated system that the account is of an incapacitated person.

ii) As far as possible the account holder should be asked to have a joint account with close relation and make a nomination in the account.

iii) If the old/sick/incapacitated person is not willing to open and operate a joint account, he/she should be convinced to give Power of Attorney/Mandate for operating the account. The Power of Attorney or Mandate should be carefully examined and noted in relevant branch records.

iv) Care should be taken in collection of cheques for large amounts.

v) Cheque book should be made available strictly on verification of the transactions in the account and on proper inquiry and authorisation of the person collecting the cheque book.

vi) The facility should be rendered in deserving cases, so as to provide relief to the old / sick / incapacitated persons who are unable to withdraw cash.

vii) The above points are illustrative and not exhaustive; the official allowing such operations should fully satisfy himself about circumstances of each case and identity of the person collecting cash on behalf of the old/sick/incapacitated person should be established beyond doubts.

165.4 : Facilities to Senior Citizens

Parameters Norms Eligibility One who has completed 60 years of age.Verification of Age School Leaving Certificate/ LIC Policy/ Passport/ Voter’s Identity

Card/ Pension Payment Order/ Employment Discharge Card/ Identity Card with Date of Birth Indicated therein or any other

CHAPTER – 2 DEPOSITS GENERAL 73document acceptable to the bank.

Joint Accounts Can be allowed – only with close relatives, i.e. Father, Mother, Spouse, Brother, Sister, Son or Daughter. The Close Relative need not be a Senior Citizen.The first deposit holder should necessarily be the Senior Citizen.

Deposit Scheme All Term Deposits + Recurring Deposit Scheme, including Flexi RD Scheme.

Minimum Amount acceptable

Rs.5,000/- in Term Deposit. (No ceiling on max. amount)Rs.100/- in normal RD & Rs.1,000/- in Flexi RD A/cs.

Rate of Interest Additional Rate of interest as per the guideline prevailing at the time of accepting the deposit.

Nomination facility Available.

Customer Service:

Role of Grahak Bandhu

166. Customers and especially the visitors who come to our branches for the first time to start a relationship are in search of a friendly face at a visible help desk counter, who will reach out and help the first time visitor / customer. Even existing customers many a times require guidance on various banking issues.

The ‘Grahak Bandhu’ will perform the above important functions. The way we welcome our guests and make them feel important, these ‘Grahak Bandhu’ would welcome the customers with a warm smile, greetings and then help and facilitate their tasks in the branch. They will educate the existing customers about our various products and also help them migrate to alternative delivery channels.

The JOB of ‘Grahak Bandhu’ will be to:

i) Remain in the banking hall throughout the business hours.ii) Welcome first time visitors / customers with a smile, greetings and if possible

calling existing customers by their name to give them recognitioniii) See that all necessary forms are stocked at customer desk, signages in the

branch are proper, branch is neat and clean.iv) Remain on the move and oversee whether there are any customer service

bottlenecks, like too many customers at a counter, slow movement etc.v) Assist customers in their queries/ tasks, take them to the respective seats if

need arises.vi) Keep a stock of various stationary items/ publicity material with him so that he

can provide them to the customers.vii) Generate awareness about our various products and guide them to the

relevant desk for further action if customer evinces interestviii) Educate the customers to use ATMs, where the branch has an ATM or

guiding customers about nearby locations of ATM and its usage, so that they can migrate to Automated delivery system.

‘Grahak Bandhu’ will be the fountainhead from which the care and concern for the customer needs’ will flow in such a manner that it gradually embraces the entire gamut of branch activities.

Obtaining Permanent Account Number (PAN)

167. Branches are required under Rule 114 B:

CHAPTER – 2 DEPOSITS GENERAL 741.1 To verify and keep on record Permanent Account No.(PAN) of customers (photocopy

of PAN Card or any other documentary evidence in respect of PAN issued by Income Tax Department duly certified by the customer may be kept on record) in respect of the following banking transactions:

a. Opening an account.

b. Investment in Term Deposits exceeding Rs.50,000/-.

c. Payment in Cash for purchase of Demand Drafts or Pay Orders for an amount aggregating Rs.50,000/- or more during any one-day.

d. Deposits in Cash aggregating Rs.50,000/- or more in the bank account.

e. Issuing of Credit Card.

f. Investment in RBI Bonds aggregating Rs.50,000/- or more.

1.2 In case the customer is a minor who applies for opening an account (referred to in para 1.1. item (a) above) or for investment in term deposit ( referred to in para 1.1. item (b) above) and such minor does not have any income chargeable to tax, he is required to quote the PAN of his father or mother or guardian as the case may be

1.3 In case of persons who have not been allotted a PAN and who enter into any of the above specified transactions viz. para 1.1. item (a) to (f), branches must obtain a declaration in Form no.60 Appendix XXIV giving therein particulars of such transaction.

2.1 In case of persons (not having PAN) who have agricultural income and are not in receipt of any other income chargeable to income tax, branches are required under Rule 114 C to obtain a declaration in Form No.61 as and when they undertake any transaction specified in para 1.1 item (a) to (f) (appendix xxv)

2.2 It may however be noted that, quoting of PAN / giving a declaration in Form no.60 or Form no.61 is not applicable to:

i. Non – Residents;ii. Central Government / State Government and Consular Officesin transactions where they are payers.

2.3 It is the duty of the Branch Manager or the concerned dealing officer to ensure that PAN is correctly quoted in the document received from the customers who undertake any of the transactions specified in para 1.1 item (a) to (f)

3. Branches are required under Rule 114 D to forward to the Commissioner of Income Tax (Central Information Bureau) having territorial jurisdiction over the area in which they are situated, copies of all declarations (other than those obtained at the time of opening of bank account) received in Form no.60/Form no.61 in two installments viz. forms received upto 30th September to be forwarded latest by 31st October of that year and those received upto 31st March to be forwarded by 30th April of that year.

Furnishing of Annual Information Return

4.1 Branches are required to furnish an annual Information Return Under Section 285BA read with Rule 114 in respect of the following transactions:

a. Cash deposits aggregating to Rs.10 lakh or more in a year in any saving bank account of a customer;

CHAPTER – 2 DEPOSITS GENERAL 75b. payment made by any person for bills raised in respect of Credit Card issued to that

person aggregating to Rs.2 lakhs or more in a year.

4.2 The above return is required to be furnished in Form no.65 (appendix xxvi) duly verified as indicated therein. Further the above return comprising Part A and Part B of Form No.65 should be furnished on computer readable media being a floppy (3.5 inch and 1.44 MB capacity) or CD-ROM (650 MB or higher capacity) or Digital Video Disc (DVD), alongwith part – A thereof on paper. The return should be accompanied with a certificate regarding clean and virus free data.

4.3 The Annual Information Return should be furnished to the Commissioner of Income Tax (Central Information Branch) having territorial jurisdiction over the area where the branch is situated or to any agency authorised by the CBDT to receive such return on behalf of the Commissioner on or before 31st August immediately following financial year in which the transaction is registered or recorded.

5. Please note that the instructions contained in Form No.60 / Form No.61 / Form No.65 must be meticulously adhered to while filling the said forms.

Obtention of Photographs

168. In terms of Reserve Bank of India directives, Banks are required to obtain photographs of the depositors/account holders in all new deposit accounts. Salient points on obtention of Photographs :

(i) Photographs must be obtained in all types of deposit accounts.

(ii) The cost of photographs should be borne by the account holders or as advised from time to time.

(iii) In case of operative deposit accounts like Saving Bank, Current Deposit etc., photographs of those who are authorised to operate the account are to be obtained.

(iv) In Term Deposit Accounts photographs of all depositors in whose name the deposit receipt stands may be obtained except in the case of deposits in the name of minors where guardian's photographs could be obtained.

(v) The requirement of obtaining photographs is in addition to the obtaining of introduction.

vi) The photograph should be properly pasted on the account opening card at the place provided for.

(vii) The signature of the account holder/s signatories to the account should be obtained across the photograph(s).

(viii) The branch's round stamp should be affixed halfway across the card and front of the photograph without disfiguring/mutilating the picture.

(ix) Photographs are to be obtained both in resident and Non-resident accounts.

(x) The requirement of photographs is also applicable to pardanishin women.

(xi) Where a person(s) is/are having more than one deposit account only one set (normally not more than two copies)of photographs need be obtained and separate photographs should not be obtained for each category of deposit.

(xii) Photocopies of driving license, passport etc. containing photographs would not be sufficient for the purpose. Obtaining of photographs is a must.

CHAPTER – 2 DEPOSITS GENERAL 76(xiii) Photographs cannot be treated as a substitute for specimen signature.

Branches need not obtain photographs from the following types of account holders :

a) Banks.

b) Local Authorities, Central/State Govt. Departments excluding public sector undertakings, or Quazi Govt. bodies.

c) Staff members (Single/Joint).

Capital Gains Account Scheme 1988&

BOI Capital Gains Tax Exemption Deposit Scheme 1997

169.1 The Capital Gains Account Scheme 1988 was introduced in 1988 and applies to all assesses who are eligible for exemption under Section 54, 54B, 54D, 54F or 54G of the Income Tax Act 1961. Under the scheme, Branches can open Savings Bank Account or Term Deposit Account for 3 years. The minimum period of deposit is 7 days in respect of single term deposit of Rs. 15 lac and above. In other cases, the minimum period is 15 days.

169.2 The rate of interest will be the same as applicable to Bank's normal deposits

169.3 Under the Schemes the deposits cannot be encumbered.

Provision of Cheque Drop Box facility for cheques / instruments for customers

170.1 As per the extant instructions, all cheques/instruments received for collection/ clearing from the customers are crossed before they are accepted.

170.2 As part of better customer service, the Bank has installed Cheque Drop Boxes at select metro/urban branches.

170.3 Following procedure should be adopted for crossing of cheques/ instruments while providing Cheque Drop Box facility for customers : -

“ Branches should display suitable notice near the Drop Box advising the customers/ their agents or employees to affix Bank’s Crossing Stamp before dropping the cheques/instruments in the Box. For this purpose the Crossing Stamp may be tagged to the Box or kept near the Drop Box ”

170.4 The Cheque Drop Box should be kept in such a prominent place that it is visible to the customers and opened at least 3 – 4 times in a day so that the cheques deposited in the box are sent in the same day’s clearing.

170.5 However, if the customer desires the counterfoil / acknowledgement for deposit of the cheques/instruments, he may be advised to avail of the usual counter facility where procedure regarding issuing counterfoil/acknowledgement for instruments deposited is followed.

CHAPTER – 2 DEPOSITS GENERAL 77170.6 As a precautionary measure against frauds, a special crossing stamp has to be kept tied near the cheque drop box and notice in bilingual / trilingual should be displayed on the cheque drop box itself as under :-

“Customers can also tender the cheques at the counter and obtain acknowledgement on the pay-in-slips / counterfoils. Where the customers choose to put the cheques in the drop box, it is advised / requested that before dropping the cheque in the cheque drop box for clearing / collection, the customer should (in their own interest) ensure that (i) special Bank crossing stamp kept near the drop box should be affixed on the face of the cheque (above the MICR band (white band) in such a fashion that it shall not cover the material facts like MICR Band, amount field, signature of drawer etc.) and (ii) fifteen digit account number is correctly written at the back of the cheque.”

Inoperative Accounts – Criteria for classification:

171. A savings as well as current account should be treated as inoperative / dormant if there are no transactions in the account for a period over two years. For the purpose of classifying an account as inoperative, 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. RBI 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. In such cases, ,the account should be treated as an operative account as long as the interest on term deposit account is credited to the Savings Bank account. The Savings Bank account can be treated as inoperative account only after two years from the date of the last credit entry of interest on term deposit.


Appendix I(paragraph 15.1)

Form DA 1Nomination under Section 45ZA of the Banking Regulation Act, 1949 and Rule 2(1) of the Banking Companies (Nomination) Rules, 1985 in respect of Bank DepositsI/WE__________________________________________________________________ (names and addresses)

nominate the following person to whom in the event of my/our/minor's death the amount of the deposit, particulars whereof are given below, may be returned by ................................. ……………...............................................................................................................................

(name and address of Branch/ office in which deposit is held)

Deposits NomineeNature of

Distinguishing No.

Additional details, if any

Name Address Relationship with Depositor, if any

Age If nominee is a minor, his date of birth

£ 2 As the nominee is a minor on this date, I/We appoint Shri/Smt./Kum. ……...............................................................................................................................................................................

(name, address and age)

to receive the amount of the deposit on behalf of the nominee in the event of my/our/minor's death during the minority of the nominee.Place :Date : * Signature(s)/Thumb impression(s)

of depositor(s)Name(s), signature(s) andaddress(es) of witness(es) @__________________________________________________________________________* Where deposit is made in the name of a minor, the nomination should be signed by a person lawfully entitled to act on behalf of the minor.£ Strike out if nominee is not a minor.@ Thumb impression(s) shall be attested by two witnesses.


Appendix II(paragraph 15.1)

FORM DA 2Cancellation of Nomination under Section 45ZA of the Banking Regulation Act, 1949 and

Rule 2(5) of the Banking Companies (Nomination) Rules, 1985 in respect of Bank Deposits.I/WE_____________________________________________________________________ [name(s) and address(es)]

hereby cancel the nomination made by me/us in favour of……………………………………….......................................................................................................................................................

(name and address)

in respect of ...............................................................................................................................(give details of deposit)

Place :Date : * Signature(s)/Thumb impression(s)

of depositor(s)Name(s), signature(s) andaddress(es) of witness(es) £

--------------------------------------------------------------------------------------------------------------------------* Where deposit is made in the name of a minor, the cancellation of nomination should be signed by a person. lawfully entitled to act on behalf of the minor.£ Thumb impression(s) shall be attested by two witnesses.


Appendix III(paragraph 15.1)

FORM DA 3Variation of Nomination under Section 45ZA of the Banking Regulation Act, 1949 and

Rule 2 (6) of the Banking Companies (Nomination) Rules, 1985 in respect of Bank Deposits.

I/WE_____________________________________________________________________ [name(s) and address(es)]

cancel the nomination made by me/us in favour of ……................................................................................................................................................................................................................

(name and address)

and hereby nominate the following person to whom in the event of my/our/minor's death the amount of the deposit, particulars whereof are given below, may be returned by

…………….. ..................................................................................................................................................... (name and address of Branch/office in which deposit is held)

Deposits NomineeNature of

Distinguishing No.

Additional details, if any

Name Address Relationship with Depositor, if any

Age If nominee is a minor, his date of birth

£ 2 As the nominee is a minor on this date, I/We appoint Shri/Smt./Kum……………………… .............................................................................................

........................................................(name, address and age)

to receive the amount of the deposit on behalf of the nominee in the event of my/our/minor's death during the minority of the nominee.Place :Date : * Signature(s)/Thumb impression(s) of depositor(s)Name(s), signature(s) andaddress(es) of witness(es) $

* Where deposit is made in the name of a minor, the variation of nomination should be signed by a person lawfully entitled to act on behalf of the minor.£ Strike out if nominee is not a minor.$ Thumb impression(s) shall be attested by two witnesses.


Appendix IV(paragraph 17.2)

Claim Form as devised by the Indian Bank's Association to be submitted by the Nominee to recognise his Claim to the Deposit/Contents in Safe Custody/Safe Deposit Vault LockerI, Shri/Smt./Kum. ..................................................................................................................., Nominee/appointed on behalf of the minor nominee hereby declare that I am the nominee/appointed on behalf of the minor nominee of the deceased Shri/Smt. ............................................................... I further declare that I am nominated to claim the deposit monies/articles held in safe custody/safety locker with ............................................... Branch by Shri/Smt. ............................................................... deceased. The deposit monies/articles held in safe custody/safety locker are held in Account............................ / Locker No. .................................... Safe Custody receipt No. ....................... of Shri/Smt. ........................................................ deceased.

Shri/Smt. ............................................................... Signature.....................................................(Nominee/appointed on behalf of minor Date.......................................................nominee)Address .................................................................. .................................................................. ..................................................................Witness*1. Magistrate or judicial Official 1.Name.......................................................................

or Address ....................................................................2. An Officer of the Central …..……………………………………………………….

or ..................................................................................State Government .................................................................................

or Signature...................................................................3. An officer of a bank 2.Name.........................................................................

or Address......................................................................4. Two persons acceptable to the ...................................................................................

bank .....................................................................

.............Signature ...................................................................

(* Strike out whichever is not applicable)


Appendix V(paragraph 30.3)

Specimen of an Unstamped Joint Hindu Family Letter to be obtained in Deposit Accounts of Joint Hindu Families which are Non-Trading in nature

To,Bank of India,..................................... Branch.

Dear Sirs,

I the undersigned the present Karta or Managing Member and we the undersigned are the present adult members of our Joint Hindu Undivided Family known as "………………. .......................................... ............................................. H.U.F." We are desirous of opening a Savings Bank/Double Benefit/Fixed Deposit Account ......................................................... in the name of ............................. ".................................................................... H.U.F." with your Bank, ...................................... Branch.

2. We hereby declare that we have read your current Rules relating to the account and that we accept them as binding upon us.

3. Although the said account will be operated by me ………………………………………the Karta only, the following members namely :

1.

2.

3.

4.

5.

6.

are also authorised jointly and severally to represent and sign on behalf of the said joint family and have full unrestricted authority to bind all the members of the joint family however constituted from time to time.

4. In the event of the Bank acceding to our request and opening the account in the name of ............................................ H.U.F., we, the undersigned, undertake with the intention of binding not only the present members of the said joint family (both adults and minors) but also all future members thereof (both adults and minors) and all persons entitled to a share therein and ourselves personally and our respective interest in the joint family properties as well as our separate estates -

(1) that whenever any change occurs in the managership or in the constitution of the said joint family caused by the death of a co-parcener whether or not resulting in a share devolving on his widow or widows or by the birth of a co-parcener or if at any time any of us desires to give up or sever his connection with the said Joint Family or if any minor member of the said family attains majority, to give notice thereof to the above-mentioned office of the Bank at once in writing ;

(2) and that notwithstanding any change in the membership of the said Joint Family all acts purporting to be done on behalf of the said Joint Family before the Bank shall have

CHAPTER – 2 DEPOSITS GENERAL 83received notice in manner aforesaid shall be binding on the said Joint Family and its properties and on each of us and our respective estates and the liability of the said Joint

Appendix-V (contd.)

Family and of each of us and of our respective estates shall continue until all liabilities in respect of such acts shall have been discharged. The names and dates of birth of the present minor members of the aforesaid Joint Family are given below*

Yours faithfully,

His personal signature here.

............................................................1. Mr. ......................................................... KartaWill sign on behalf of the Hindu ………………………………………….undivided family as follows

…………………………………………..2. Mr. .........................................................

…………………………………………..3. Mr. ......................................................... 4. Mr. .........................................................

*Particulars of the minor members of the Joint Family :

Name Father's name Date of Birth................................................ ................................................ ................................................

------------------------------------------ -------------------------------- --------------------------------

------------------------------------------ -------------------------------- --------------------------------

------------------------------------------ -------------------------------- --------------------------------


Appendix VI(paragraph 39 & 41)

Specimen of a consent Letter for Mother to Operate Minor's Account

Date ...........................


Dear Sirs,

Re : Proposed Savings/Fixed/Short/ Monthly Income Certificate/Double Benefit/Recurring Deposit Account in the name of my minor son/daughter Master/Miss ….............................................born on..............................

I do hereby give my consent to your opening Savings/Fixed/Short/Monthly Income Certificate/Double Benefit/Recurring Deposit Account in the name of my minor son/daughter Master/ Miss ...................................................................... to be operated upon by my wife, Mrs ………….................................................................................. as mother and natural guardian. All operations on the said account by my wife as such natural guardian will be binding on me and on the above-named minor.

Yours faithfully,

(Signature of the minor's father)


Appendix VII(Paragraph Nos 39.4 and 39.8)

Specimen of Indemnity to be signed by the Mother as a guardian of a Mohammedan Minor where father is deceased

Date ...........................


Dear Sirs,

Re : Account in the name of ……………………………………. ...minor to be operated upon by .................... mother/brother/sister/grandmother/grandfather of the minor

At my request you have opened a Savings Bank Account No. .................................... / Fixed / Short / Monthly Income Certificate/Double Benefit Deposit Account No. ......................./ Recurring Deposit Account No. ................................................... in the name of my minor son / daughter / brother / sister / grandson / granddaughter to be operated upon by me as his/her mother/brother/ sister/grandfather/grandmother.

2. I have represented to you* i) that my husband/father/son/son-in-law Mr. .......................................................... the

father of the said minor is not alive and I am acting as his/her defacto guardian.

* ii) I am not in a position to obtain a letter of consent from my husband/father/son/son-in-law Mr. ......................................................... the father of the said minor for opening and operation of the said account.

iii) The account opened for the benefit of the minor and the money deposited therein from time to time as also the interest accrued thereon from time to time will be utilised for the benefit of the minor.

3. You have agreed to open the said account to be operated by me as the guardian of the said minor without insisting on an order of a Court, relying on my above representations and on my giving you an Indemnity as hereinafter appearing.

4. In consideration of the premises, I, so as to bind myself as the guardian of the said minor as also in my personal capacity and my heirs, executors, administrators, estate and effects, undertake and agree with you and your successors and assign as follows :

* Delete if not applicable

i) to keep you safe and indemnified against all claims, demands, actions, proceedings, losses, damages, costs, charges and expenses (the legal costs being between Advocate and client) which may be made or brought or commenced against you or be paid, sustained, suffered or incurred by you howsoever as a consequence, direct or indirect of your opening the account in the name of the said minor to be

CHAPTER – 2 DEPOSITS GENERAL 86operated upon by me as his/her guardian as aforesaid and without insisting on an Order of a Court;

Appendix VIIAppendix VII (contd.)

ii) to pay to you on demand the amount of any such losses, damages, costs, charges and expenses together with interest at ...................... % p.a. from the date of payment by you until reimbursement by me.

Yours faithfully,

Witnesses : 1)

2)

Signatures & Addresses.

In consideration of the premises, we, the undersigned, ................................................................ (name/s of surety/ies) jointly and severally guarantee to you, Bank of India, the payment of all moneys due under the aforesaid indemnity by the executants thereof.

Witnesses : 1) Signature ..........................................................................Name .................................................................................Occupation .......................................................................Address ............................................................................

2) Signature ..........................................................................Name ................................................................................Occupation .......................................................................Address .............................................................................

Signatures and Addresses

Note : To be stamped as an Indemnity Bond if the signature of any of the executants whether indemnifier or surety is attested by a witness. If not so attested, it is to be stamped as an Agreement. But the indemnifier and the sureties should be otherwise properly identified.


APPENDIX VIII(paragraph no. 39.4 and 39.8)

Specimen of the Consent Letter to be obtained from the Father to allow Relatives to operate the Account

To,Bank of India, Date : ....................................................... Branch

Dear Sirs,

Re : Proposed Savings/Fixed/Short/Monthly Income Certificate/DoubleBenefit/Recurring Deposit Account in the name of my minor son/daughter Master/Miss ......................................................................born on .............................................................................................

I do hereby give my consent to your opening Savings/Fixed/Short/Monthly Income Certificate/Double Benefit/Recurring Deposit Account in the name of my minor son/daughter, Master/Miss ................................................................................... to be operated upon by my* ..........................................Mr./Mrs.................................................................................. as** .................. ................................................and guardian of my minor daughter / son. All operations on the said account by my*........................................... as** ............................................................. and guardian of the minor would be binding on me and on the abovementioned minor.

Yours faithfully,

....................................................... (Signature of the minor's father)

* State the relationship of father to the relatives

* * State the relationship of the relatives to the minor.


APPENDIX IX(paragraph 39.4 to 39.8 and 41.4)

Specimen of a Letter of Undertaking by Father and Mother to Operate Minor's Account by Either of Them

Date. ........................

To, Bank of India,.................................... Branch.

Dear Sirs,

Re: Proposed Savings/Fixed/Short/Monthly Income Certificate/DoubleBenefit/Recurring Deposit Account in the name of my minor son/daughter Master/Miss ......................................................................born on .........................................

I do hereby give my consent to your opening Savings / Fixed / Short / Monthly Income Certificate/Double Benefit/Recurring Deposit Account in the name of my minor son/daughter Master/ Miss.............................................................. to be operated upon by either myself as the father and natural guardian or my wife, Mrs. ........................................................................ as mother and natural guardian. All operations on the said account by my wife as such natural guardian will be binding on me and the above-named minor.

Yours faithfully,

(Signature of the minor's father)

I agree and undertake that I will operate the account as stated above, for the benefit of my minor son/daughter .

(Signature of the minor's mother).


APPENDIX X(paragraph 45.3)

Specimen of Declaration by Parents where Both the Parents are alive

To, Date ..........................

Bank of India,......................................... Branch

Dear Sirs,

Re: Opening of an account with your .......................................................................................................................Branch on behalf of our minor son/daughter

We say that we are desirous of opening an account with your ...................................... Branch in the name of our minor son/daughter ................................................................. who is under the age of 18 years (hereinafter referred to as "the minor").

2. We understand, you require school certificate/birth certificate from Municipality/birth certificate from Gram Panchayat as proof of date of birth for opening an account on behalf of the minor.

3. Since we do not possess school certificate/birth certificate from Municipality/birth certificate from Gram Panchayat as proof of date of birth required by you, we request you to open the account in the name of our minor son/daughter on the basis of this declaration made by us.

4. We have made due and diligent search to obtain school certificate/birth certificate from Municipality/birth certificate from Gram Panchayat but could not find the same and we hereby undertake to furnish it if we obtain the same from aforesaid authority.

5. We say that we are parents of our minor and we are entitled to operate an account on behalf of our minor under the personal law by which we are governed.

6. We hereby undertake to indemnify and keep indemnified you against any loss or damage that may be caused to or suffered by you on account of any claim that may be made in respect of the said account opened by us on behalf of minor.

7. We have made this declaration solemnly and sincerely knowing that on the faith, strength and correctness thereof you have agreed to open the said account on behalf of minor.

Yours faithfully,

( ............................................... )


APPENDIX XI(paragraph 45.3)

Specimen of Declaration by the Surviving Parent where one of the Parents is Deceased

To, Date ..............................

Bank of India,................................... Branch

Dear Sirs,

Re : Opening an account with your .................................. Branch on behalf of my minor son/daughter.

I say that I am desirous of opening an account with your ............................................... Branch in the name of my minor son / daughter .................................................................................. who is under the age of 18 years (hereinafter referred to as "the minor").

2. I understand, you require school certificate/birth certificate from Municipality/Gram-Panchayat as proof of date of birth for opening an account on behalf of the minor.

3. Since I do not possess school certificate/birth certificate from Municipality/Gram-Panchayat as proof of date of birth required by you I request you to open the account in the name of my minor son/daughter on the basis of this declaration made by me.

4. I have made due and diligent search to obtain school certificate/birth certificate from Municipality/Gram Panchayat but could not find the same and I hereby undertake to furnish it if I obtain the same from aforesaid authority.

5. I say that I am the only surviving parent of my minor son/daughter and I am entitled to operate an account on behalf of minor under the Personal Law by which I am governed.

6. I hereby undertake to indemnify and keep indemnified you against any loss or damage that may be caused to or suffered by you on account of any claim that may be made in respect of the said account opened by me on behalf of the said minor.

7. I have made this declaration solemnly and sincerely knowing that on the faith, strength and correctness thereof you have agreed to open the said account on behalf of the said minor.

Yours faithfully,

( ................................................... )


APPENDIX XII(paragraph 49 (d) and 58 (d)

Specimen of Resolution for Opening of Accounts of Limited Companies AND Societies, Associations, Committees and Clubs Incorporated

under the Companies Act, 1956

Certified copy of an extract from the minutes of meeting of the Board of Directors of the ............................... Company Limited duly convened and at which a proper quorum was present, held at ...................................................... on the ........... day of ......................20…….

We hereby certify that the following resolution of the Board of Directors of.......................... ................................ Co. Ltd., was passed at a meeting of the Board held on ................................. and has been duly recorded in the minute book of the said Company:

"Resolved that a banking account for the Company be opened with Bank of India, ......................... Branch, .................... City and that the said Bank be and is hereby authorised to honour cheques, bills of exchange and promissory notes drawn, accepted or madeon behalf of the Company by ………………………………………(Here insert how many persons have to sign and their names)..........................................................................................................................................................................................................................................................................................................and to act upon any instructions so given relating to the account, whether the same be overdrawn or not or relating to the transactions of the Company."

..........................................Certified true copy Chairman of the MeetingDate .............................

………………………………Secretary


APPENDIX XIII[paragraph 58 (d)]

Specimen of Resolution for Opening of Accounts of Clubs, Schools, Societies,Associations, Committees, etc.

Certified copy of an extract from the minutes of a meeting of the Governing Body/Managing Committee/Board of Management of .............................................................................. duly convened at which a proper quorum was present, held at ................................................. on the ..............day of ............................ 20..............

"RESOLVED*(a) That a Current/Savings Bank Account(s) be opened in the name of.............................. ………………………………………………..with Bank of India, .............................................. Branch, ...................................... City and that the account(s) be operated upon and cheques thereon be signed and all instructions regarding the Account(s) be given by all/any .................................. of the following office-bearers:

.....................................................................................................

.....................................................................................................

.....................................................................................................(Names and designation of the office-bearers should be mentioned) AND/OR

*(a) That a Safe Custody Account be opened in the name of ................................................. with Bank of India, ........................................ Branch, ........................................ City , and that all/any ...................................... of the following office-bearers be authorised to lodge into and withdraw from the Account the Shares, Debentures, Securities, Fixed Deposit Receipts and any other scrip representing any investment whatsoever belonging to ................................................ and to give instructions to the Bank for selling and otherwise dealing with all or any of them and also to give all other instructions with regard to operation of the said Safe Custody Account:

.....................................................................................................

.....................................................................................................

.....................................................................................................(Names and designations of the office-bearers should be mentioned)

AND/OR

*(a) That a Fixed Deposit Account/Monthly Income Certificate/Double Benefit Deposit Account be opened in the name of ........................................................................................................... with Bank of India, ......................................... Branch, .......................................... City, by depositing an amount of Rs ............................. (Rupees .........................................................)for a period of ............................... years and/or by depositing such other amounts as may be available for such period(s) as may be required from time to time and that all/any ................. of the following office-bearers be authorised to receive the amount of the said Fixed Deposit/ Monthly Income Certificate/Double Benefit Deposit and interest thereon and to renew the same and to endorse and discharge the Fixed Deposit Receipt(s)/Monthly Income

CHAPTER – 2 DEPOSITS GENERAL 93Certificate(s)/Double Benefit Deposit Certificate(s) and to give all other instructions with regard to the operation of the said Fixed Deposit/Monthly Income Certificate/Double Benefit Deposit Account:............................................................................................................................................................................................................................................................................................................................................................(Names and designations of the office-bearers should be mentioned)

APPENDIX XIII (contd.)

(b) That as and when any change takes place in the Governing Body/Managing Committee/Board of Management/ ................................................................................ the Bank be advised about such change and a fresh Resolution regarding the operation of the Account(s) be forwarded to the Bank forthwith.

(c) That a copy of the Resolution duly authenticated by ............................................................. …………………………………………………………………………………………………………….

names and designations)

be forwarded to the Bank together with the specimen signatures of all the aforesaid office- bearers. This Resolutions shall remain in force until the receipt by the Bank of the advice about the change in the office-bearers authorised to operate the Account(s) together with a fresh Resolution in that behalf."

.............................................Chairman of the Meeting

Certified True Copy

............................................

Date........................ Secretary

* Applicable alternative(s) to be included in the Resolution.


APPENDIX XIV(paragraph 67 d)

Specimen of Resolution for Trust Accounts: Current or Savings Bank Account

Resolution passed by the Trustees of the .............................................................. Trust at their meeting held on the ............................. day of ........................... 20 ............

Resolved that:

(a) A Current/Savings Bank Account be opened in the name of ............................................... Trust with Bank of lndia, ......................................... Branch, ....................................... City.

(b) The Account be operated upon and cheques thereon be signed and all instructions regarding Account be given by all/any …………………………………………………… ………...……………………………………………………………………………………… of (Insert the no. as authorised by the Trust Document or permitted by Head Office)

following Trustees, who are all the present Trustees of the abovementioned Trust :

.........................................................................................

.........................................................................................

.........................................................................................

.........................................................................................

(c) As and when any change takes place in the Board of Trustees, the Bank be advised about such change and a fresh Resolution regarding the operation of the Account be forwarded to the Bank forthwith.

(d) This Resolution be forwarded to the Bank together with the specimen signatures of all the Trustees and it shall remain in force until the receipt by the Bank of the advice about the change in the Board of Trustees together with a fresh Resolution referred to in (c) above.

............................................................

............................................................

............................................................

............................................................(All the Trustees to sign).


APPENDIX XV[paragraph 67(d)]

Specimen of Resolution for Trust Accounts: Safe Custody Account

Resolution passed by the Trustees of the ................................................ Trust at their meeting held on the ................................. day of ............................ 20...............

Resolved that :

(a) A Safe Custody Account be opened in the name of the ....................................................... Trust with Bank of India, .................................................. Branch, .................................... City.(Insert the number as authorised by the Trust Document or permitted by Head Office) (b)All/Any……………………………………………………………………………….........................

(Insert the number as authorised by the Trust Document or permitted by Head Office)

of the Trustees named below, who are all the present Trustees of the Trust, be authorised to lodge into and withdraw from the Account the shares, securities and other investments belonging to the Trust and to give instructions to the Bank for selling and otherwise dealing with the same and also to give all other instructions with regard to the operation of the said Safe Custody Account:

...................................................................

...................................................................

...................................................................

...................................................................

(c) As and when any change takes place in the Board of Trustees, the Bank be advised about such change and a fresh Resolution regarding the operation of the Account be passed and forwarded to the Bank forthwith.


........................................................

........................................................

........................................................

........................................................(All the Trustees to sign).


APPENDIX XVI[paragraph 67(d)]

Specimen of Resolution for Trust Accounts: Term Deposit Account

Resolution passed by the Trustees of the ................................................ Trust at their meeting held on the ................................. day of ............................ 20...............

Resolved that :

(a) A fixed Deposit / Monthly Income Certificate / Double Benefit Deposit Account be opened in the name of the ………………………. Trust with Bank of India……………………………….Branch,……………………………City, by placing an amount of Rs……………………… on Fixed Deposit / Monthly Income Certificate / Double Benefit Deposit for a period of ………… years.

(b) All/Any....................................................................................................................................(Insert the number as authorised by the Trust Document or permitted by Head Office)

of the Trustees named below, who are all the present Trustees of the Trust, be authorised to receive the amount of the said Fixed Deposit/Monthly Income Certificate/Double Benefit Deposit and interest thereon or to renew the same and to endorse and discharge the Fixed Deposit Receipt(s)/Monthly Income Certificate(s)/Double Benefit Deposit Certificate(s) and to give all other instructions with regard to the operation of the said Fixed Deposit/Monthly Income Certificate/Double Benefit Deposit Account :

...................................................................

...................................................................

...................................................................

...................................................................

(c) As and when any change takes place in the Board of Trustees, the Bank be advised about such change and a fresh Resolution regarding the operation of the Account be passed and forwarded to the Bank forthwith.


........................................................

........................................................

CHAPTER – 2 DEPOSITS GENERAL 97........................................................

........................................................(All the Trustees to sign).

APPENDIX XVII(paragraph 69)

To be stampedas an agreement

Specimen of Indemnity Letter by Trustees in a Trust Account

Date ........................

To,

Bank of India,................................ Branch.

Dear Sirs,

In consideration of your having at our request opened a Current/Savings Bank Account with you in the name of ........................................................................................ to be operated upon by any ......................................... of us jointly, we do jointly and each one of us doth severally declare, undertake and agree as follows:

(1) That we all have been duly appointed Trustees and are entitled to act as such Trustees of the said Trust.

(2) That all deposits into and withdrawals from the said account shall be in due course of the administration of the said Trust and for the purpose of the Trust and that the account shall relate solely to the affairs of the Trust and that you are not to be concerned to look to the propriety of any withdrawal or to the actual application thereof and that every withdrawal shall for the purposes of these presents be deemed to be a withdrawal by us all.

(3) That you will be duly notified of any and every change in Trustees.

(4) That we and each one of us jointly and severally so as to bind our respective selves personally and our respective heirs, executors and administrators and our personal estates and effects will keep Bank of India, its Successors and Assigns safe, saved, harmless and indemnified against all proceedings, actions, claims, demands, losses, damages, costs, charges and expenses (the legal costs being as between advocate and client) commenced or made against the Bank or paid, sustained, suffered or incurred by the Bank in consequence of any operation on the said account on any ground whatsoever, to the intent that the Bank

CHAPTER – 2 DEPOSITS GENERAL 98shall in all respects be in the same position in which it would be if the account were an ordinary current account without the Bank being affected with notice of the Trust.

Yours faithfully,

............................................................

............................................................

............................................................

............................................................

(All the Trustees to sign)

APPENDIX XVIII(paragraph 85)

Specimen of a letter of Thanks to the Introducer of an AccountRef. No. Date ............................

..............................................................

..............................................................

..............................................................

Dear Sir/Madam,

It is always gratifying when a customer of Bank of India recommends its services to a friend and introduces him to the Bank. It is, therefore, with much pleasure that we have opened a current/savings bank account for Mr./Mrs./Miss ..................................................... who has been introduced to us by you.

I very much appreciate this introduction from you because, besides indicating to us the worthiness of the new customer, it expresses the friendly relations existing between the Bank and its old customers.

In sending you this note of personal thanks, I would take the opportunity to advise you that, besides current / savings accounts, the Bank offers to its customers extensive services of various kinds.

Yours faithfully,

Manager


APPENDIX XIX(paragraph 119.1)

Specimen of Indemnity letter Regarding Payment of Balance of Account of a Deceased Account Holder

Name : ............................................. Address : ...................................................................................................

Date .................................................

To,Bank of India,....................................... Branch.Dear Sirs,

Re: Payment of balance of Rs .................................... in the account of

Mr./Mrs./Miss ………………………………………..….(Deceased)

Mr./Mrs./Miss…………………………………………………………………….. had the Current Account No……………. / Savings Bank Account No....................... / Fixed / Short/Monthly Income Certificate / Double Benefit Deposit Account No. ..………… / Recurring Deposit Account No...................... with your Bank.

2. Mr./Mrs./Miss ........................................................................................................ had expired on ....................at....................... leaving at the time of his/her death the credit balance(s) in his/her respective account(s) as under:(a) Current Account No. Rs. ...........................(b) Savings Bank Account no. Rs. ...........................(c) Fixed/Short/Monthly Income Certificate /

Double Benefit Deposit Account no. Rs. ...........................(d) Recurring Deposit Account no. Rs. ...........................

Total : Rs. ..........................._____________________

3. I/We have represented to you :(a) that the deceased died without leaving a Will and I/we the undersigned

To be stamped as an agreement

CHAPTER – 2 DEPOSITS GENERAL 100(i) .................................................................................,(ii) .................................................................................,(iii) .................................................................................etc. ,am/are the only heir(s) of the deceased according to the law of intestate succession applicable to him/her

OR

(a) that the deceased died leaving his/her last Will and testament dated ................................... and we the undersigned. …………………………............................ are the executors thereof; and that had he/she died without leaving the Will, We the under-signed namely ………………. .....................................................................................................................................................…………………………………………………………………………………………………………….

(Names of heirs)

APPENDIX XIX (contd.)

would have been the heirs of the deceased according to the personal law of intestatesuccession applicable to him/her;

(b) that we do not intend to obtain any grant of legal representation to the estate of the deceased;

(c) that we are the only persons entitled to the properties and assets of the deceased, as such executors/heirs as on intestacy.

4. We have requested you to pay the said balance in the said account(s) to all/ ............................ of us the undersigned namely ........................................................................ (Names of persons to whom payment is to be made)

.....................................................................................................................................................which you have agreed to do on the faith and strength of and relying on my/our above representation and on my/our executing such indemnity in your favour as is hereinafter appearing.

5. In consideration of above premises, I/we so as to bind myself/ourselves jointly and each severally and my/our respective heirs, executors, administrators, estate and effects jointly and severally undertake and agree with you, your successors and assigns as follows:

(a) to keep you safe and indemnified against all claims, demands, actions, proceedings, losses, damages, costs, charges and expenses (the legal costs being between attorney and client) which may be made or brought or commenced against you or be paid, sustained, suffered or incurred by you howsoever, as a consequence direct or indirect of your paying the said sum in the above accounts to me/us without insisting on a grant of legal representation.

(b) to pay to you on demand the amount of any such losses, damages, costs, charges and expenses together with interest at .................... % p.a. from the date of payment by you until reimbursement by me/us.

Yours faithfully,...................................................................................................................................................

In consideration of the premises,we the undersigned ……………………………………………… ...................................................................................................................................................[

Name(s) of surety(ies)

CHAPTER – 2 DEPOSITS GENERAL 101jointly and severally guarantee to you, Bank of India, the payment of all moneys due under the aforesaid indemnity by the executants thereof

1. Signature .................................................Name .....................................................Occupation .............................................Address .................................................................................................................

2. Signature ...............................................Name .....................................................Occupation ............................................Address .................................................................................................................

CHAPTER – 2 DEPOSITS GENERAL 102APPENDIX XX

(paragraph 119.2)

Specimen of Form to be Completed by Claimant(s) for Payment of Balance of Accountof a Deceased Account Holder

Date .............................To,

Bank of India,.................................. Branch.

Dear Sirs,

(Specify type of deposit and title of account)

Re : ......................................................................................................

I/We furnish the following particulars in connection with the above account and request you to repay the balance of the account against an Indemnity Bond :

1. Name of the deceased account holder..............................................................................

2. Name(s) of the applicant(s).................................................................................................

3. Amount claimed and the nature of the account concerned............................................

...............................................................................................................................................4. Has the deceased left a Will? Who are the executors named in such Will? Why has Probate not been obtained?

...............................................................................................................................................5. If the deceased did not leave a Will, has any form of legal representation been obtained to his estate such as Succession Certificate, Letters of Administration or an Administrator General's Certificate? If so, by whom ?

...............................................................................................................................................6. If the deceased was married, did he/she leave a widow/widower and/or a child or children or a child or children of a predeceased child? Any minors? If so, is there a legal or natural

guardian?...................................................................................................................................

7. If the deceased did not leave a widow/widower and a child or children or issue, did he/ she leave him/her surviving any parent, brother, sister or children of a predeceased brother or sister?...............................................................................................................................................8. What is the relationship of the claimants with the deceased? Are they all the heirs?...............................................................................................................................................

9. If the deceased was a Hindu and the balance of the account is claimed as joint familyproperty, who are the other members of such joint family? Who is the Karta of such jointfamily?...............................................................................................................................................10. Are there any claimants/heirs other than those joining in the indemnity bond?...............................................................................................................................................11. Are there any unsatisfied creditors?..............................................................................................................................................................................................................................................................................................


APPENDIX XX (contd.)

12. What is the position regarding liability to and payment of estate duty?...............................................................................................................................................

13. Has the deceased left any other assets? If so, who is/are the claimant(s) thereto? Howhas/have such claimant(s) acquired title to such assets?...............................................................................................................................................14. Was the deceased doing any business or was he in service? If in service, was he entitled to any Provident Fund? If he was, whom did he nominate to receive such Provident Fund?...............................................................................................................................................15. Was the life of the deceased assured? If so, to whom have the moneys been paid? Wasthere a nomination or assignment in respect of the assurance moneys? If so, to whom?..............................................................................................................................................................................................................................................................................................

16. Names of two sureties, with full address and occupation.I. (i) Name(ii) Address(iii) Occupation

II. (i) Name(ii) Address(iii) Occupation

17. Any other facts which the applicant(s) wants to state in support of his/their claim.Yours faithfully,

...............................................

...............................................


APPENDIX XXI(paragraph 149.1)

Specimen of Declaration Form -Staff Accounts

Date ...............................

To,

Bank of India,..................................... Branch.

Dear Sirs,

Re: My Savings Bank Account No. ...............................................My Term Deposit (F.D./M.I.C/D.B.D.)/R.D.*Account

I do hereby declare that I am a staff member of the Bank of India, ............................... Branch/Department and the monies deposited or to be deposited in my abovementioned account(s) are my own monies and belong to me.

Yours faithfully,

* Strike out which is not applicable. ................................................


APPENDIX XXII(paragraph 49 B)

DRAFT RESOLUTIONCERTIFIED copy of a Resolution passed by the Board of Directors of.......................................Co. Ltd. at its meeting held on the ................... day of.............. 20.......... when a proper quorum was present

RESOLVED that Mr ....................................................................................................... Chairman/Managing Director/Chief Executive/ ......................................................................of the Company be and is hereby authorised for and on behalf of and in the name of the Company to open and operate on any Current Accounts whether the same be in credit or overdrawn and other demand or term deposit accounts with any Bank or Banks at any place or places in India/in the State of................................. he may approve of and for that purpose to sign the necessary account opening forms and mandates, receipts and other documents required by the concerned Bank and to give to such Banks instructions from time to time regarding operation of such accounts whether the same be in credit or overdrawn including the names of any officers/employees authorised by him to operate such accounts and the mode of operation thereof and to vary or revoke these instructions and to issue new instructions to the Banks at his discretion from time to time and to close any of such accounts if he so thinks fit.

RESOLVED further that the said Mr. ................................. be and he is hereby also authorised to make, draw, accept, endorse, transfer, negotiate, deal with any cheques, pay-orders/bills of exchange and other negotiable instruments/ for and on behalf and in the name of the Company and also to sign and to give discharges and receipts for any moneys payable to the Company by any Bank in respect of any such Bank account and generally to do all such acts, deeds and things as may be necessary and proper for the purpose of opening and operating such account or any of them including in particular to authorise any officer or employee of the Company to operate such accounts and to exercise any of the powers hereby conferred on him except the power to open any such accounts.

FURTHER RESOLVED that Mr. .................................................... Chairman/Managing Director/Chief Executive is hereby authorised to delegate the powers hereunder given to him to such other officers as he may deem fit from time to time on such terms and conditions as he may deem fit

RESOLVED that as and when required a certified copy of this Board Resolution be furnished to the concerned Bank and the Bank be requested to act thereon.

CHAPTER – 2 DEPOSITS GENERAL 106Appendix XXIII(Paragraph 148.1)

Specimen of Statement of Current Accounts Opened/Maintained in the Names of close Relatives of Staff Members

BRANCH : FOR THE QUARTER ENDED


APPENDIX XXIV(paragraph 167)

Form No. 60(See third proviso to rule 114B)

Form of Declaration to be filed by a person who does not have either a permanent account number or General Index Register Number and who makes payment in cash in respect of transaction specified in clauses (a) to (h) of rule 114B.

1. Full name and address of the declarant ...........................................................................................................................................................................................................................................................................................................................................................................................

2. Particulars of transaction

3. Amount of the transaction

4. Are you assessed to tax ? Yes/No

5. If yes,(i) Details of Ward/Circle/Range where the last return of Income was filed ?(ii) Reasons for not having permanent account number/General Index Register Number ?

6. Details of the document being produced in support of address at serial no. 1.....................................................................................................................................................

VerificationI,............................................ do hereby declare that what is stated above is true to the best of my knowledge and belief.

Verified today, the ...................... day of ........................ 20 ................Date : ...............Place : ..............

............................Signature of the declarant

Instructions : Documents which can be produced in support of the address are :(a) Ration Card(b) Passport(c) Driving Licence(d) Identity Card issued by any institution(e) Copy of the electricity bill or telephone bill showing residential address(f) Any document or communication issued by any authority of Central Government, State Government or local-bodies showing residential address(g) Any other documentary evidence in support of his address given in the declaration.

CHAPTER – 2 DEPOSITS GENERAL 108APPENDIX XXV(paragraph 167)

Form No. 61(See proviso to clause (a) of rule 114C)

Form of Declaration to be filed by a person who has agricultural income and is not in receipt of any income chargeable to income tax in respect of transactions specified in clauses (a) to (h) of rule 114B.

1. Full name and address of the declarant ...........................................................................................................................................................................................................................................................................................................................................................................................

2. Particulars of transaction

3. Details of documents being produced in support of address at serial no. 1 …………………………………………………………………………………………………………..

I hereby declare that my source of income is from agriculture and I am not required to pay income tax on any other income if any.Date : .................Place : ............... ............................ Signature of the declarantVerification

I,............................................ do hereby declare that what is stated above is true to the best of my knowledge and belief.

Verified today, the ...................... day of ........................ 20 ................Place : ..............

............................Signature of the declarant

Instructions : Documents which can be produced in support of the address are :(a) Ration Card(b) Passport(c) Driving Licence(d) Identity Card issued by any institution(e) Copy of the electricity bill or telephone bill showing residential address(f) Any document or communication issued by any authority of Central Government, State Government or local-bodies showing residential address(g) Any other documentary evidence in support of his address given in the declaration.


APPENDIX XXVI(Paragraph 167)

Bank of India ...................... BranchStatement of Transactions for the month of .................. 20 ................

(Rules, 114B, 114C & 114D of Income Tax Rules) No. Date Name & Address of

the Depositors/OthersNature of Transaction

Amount Rs

PAN/GIR

No.

PAN/GIR No. not quoted Whether enclosed copies of

Form 60Yes/No

Form 61Yes/No

Passport Yes/No.

I Term Deposits exceeding Rs. 50,000/-

II Opening of AccountsIII Payment to a hotel/

restaurant of bills exceeding Rs. 25,000/-at any one time

IV Others (Specify)

Date : Branch Manager

CHAPTER – 2 DEPOSITS GENERAL 111APPENDIX XXVII (Paragraph 146. A) Customer Records Up-dation Sheet

CHAPTER – 2 DEPOSITS GENERAL 112Appendix XXVIII(Paragraph 127.A)

Application Form for settlement of claim in deceased depositors’ accounts(To be used when account has nomination or is a joint account with survivorship clause)

From ______________________________________________________________________________________________________

ToThe Branch Manager,Bank of India,___________________ Branch

Dear Sir,Re: Deceased Account Late Shri/Smt…............………………….. Account No(s)………….......................…

1. I/We advise the demise of Shri/Smt. _______________________________________________ on __________________. He/She holds the above account(s) at your branch. The account is in the name(s) of:______________________________________________________________________.

2. A. In case of Nomination *I,…………………………………………………son/daughter of Shri………………..…………………...... residing at ………………………………………………….…………………………………………………… am

(i) the registered nominee in the above account(s). (ii) the person authorized to receive payment on behalf of Master / Miss ........

…………………….. who is the nominee in the above account(s) and is a minor as on the date of this claim.

Please settle the balance in the account in the name of the nominee. I/we receive the payment as trustee(s) of the legal heirs of the deceased.

B. In the case of joint account *

I/We Request you to delete the name of deceased person and continue the account in my /our name(s) with same mode of operations.

3. I/We submit photocopy of the following document(s) together with originals. Please return the original to us after verification.

Death Certificate issued by ______________________Identity proof (required in nomination cases) ________________

Place: Yours faithfully,Date:

(Claimant(s))

Witness : 1.Magistrate or judicial Official 1. Name .............................................................

CHAPTER – 2 DEPOSITS GENERAL 113 or2.An Officer of the Central or State Government or 3. An officer of a bank

or4. Two persons acceptable to the bank

Address ............................................................. ........................................................................

.... ........................................................................ Signature ........................................................

2. Name ............................................................. Address ............................................................. ........................................................................

.... ........................................................................ Signature ........................................................

(*Strike out whichever is not applicable)


Appendix XXIX(Paragraph 127.A)

Application Form for settlement of claim in deceased depositors’ accounts (To be used when account has no nomination or is a joint account without survivorship

clause)

Date ____________ To,Bank of India,_____________ Branch.

Dear Sirs,

Re : Claim for payment of Balance of Account of ________________________ (deceased)

I/We advise the demise of Shri/Smt. _______________________ on __________________. He/She holds the above account(s) at your branch. The account(s) is/are in the name of:_____________________________________.

I/We lodge my/our claim for the balances with accrued interest lying to the credit of the above named deceased who died intestate. I / we am / are the legal heirs of the above named deceased and lodge my/our claim for payment as per the bank’s rules and discretion. The relevant information about the deceased and the legal heirs are as under :

Name Age Sex Occupation Relationship with the deceased

1. Deceased - -

2. Claimants/s, Hiers(proof of identity enclosed)

1.

2.

3.3. Two sureties with

address1. -

2. -

4. Claim Amount(please enclose passbook / cheque book / TDR as applicable)

Type of A/c No. AmountSBCDRDTDR

Total5. Other Assets & Liabilites of the deceased (a) Assets (Movable other than claimed amount. Please include deposits with other Banks/branches,

PF & LIC claims/receivables etc.)Details Value Their claimant

(b) Immovable Properties

CHAPTER – 2 DEPOSITS GENERAL 115Details Value Their Clamant

(c) Liabilities (including tax liability and unsatisfied creditors, if any

7. Whether deceased left a will Yes/No

8. Whether any legal representation obtained like succession certificate etc.?

Yes/No

9. Name or Names of the Guardian/s of the minor Children of the Depositor(a) Whether Natural Guardian (b) Whether Guardian appointed by a Court of Law in India. If so, attach a certified copy or duly attested copy of such Order

(c) In whose custody the Minor/Minors is / are?

: _______________________

: _______________________

: ________________________

10 Any other facts which the applicant(s) wants to state in support of his/her/their claim.

I/We submit the following documents. Please return the original death certificate to us after verification:

1. Death Certificate (Original + 1 photocopy) issued by: ______________ 2.Letter of Indemnity

We request you to pay the balance amount lying to the credit of the above named deceased to …………………………………….on my/our behalf.

I/We hereby solemnly affirm that the above statements are true and correct to the best of my/our knowledge and belief.

Place: Yours faithfully,

Date :

Encl.:

Name of Claimant Address A/c with us, Signature of Claimant(s) if any & Type

1.

2.

3.Appendix XXX

CHAPTER – 2 DEPOSITS GENERAL 116(Paragraph 127.A)

Indemnity Letter for payment of balance in account of deceased depositors (To be used for cases other than nomination or is a joint account without survivorship

clause)

Name:………………………………..Address:…………………………….

………………………………………..

Date :

To:

Bank of India.

______________________Branch.

Dear Sirs.

Re.: Payment of balance of Rs._______________in the account of Mr./Mrs./Miss

---------------------------------------------------------(Deceased)

Mr./Mrs./Miss…………………………………………………….had the Current Account No……………….Savings Bank Account No.………………….. /Fixed/Short/Monthly Income Certificate / Double Benefit Deposit Account No…………………./Recurring Deposit Account No……………..with your Bank.

2. Mr./Mrs./Miss………………………………………….had expired on ……………. at ……………..leaving at the time of his/her death the credit balance(s) in his/her respective account(s) as under :

(a) Current Account No. : Rs._______________(b) Savings Bank Account No. : Rs._______________(c ) Fixed/Short/Monthly Income

Certificate/ / Double Benefit Deposit Account no. : Rs._______________

(d) Recurring Deposit Account no. : Rs.______________________________________

Total : Rs……………………..

==================

3. I/We have represented to you :

(a) that the deceased died without leaving a Will and I/We the undersigned

(i)………………………………………………….,

(ii) ………………………………………………….,

(iii)………………………………………………….etc.,


am/are the only heir(s) of the deceased according to the law of intestate succession applicable to him/her

OR

(a) that the deceased died leaving his/her last Will and testament dated…………….and we the undersigned

....................................................................................…………………… (Names of the Executors)

...................................................…………….………………………………

are the executors thereof; and that has he/she died without leaving the Will, We the undersigned namely

…………………………………………………………………………………(Names of the Heirs)

…………………………………………………………………………………

would have been the heirs of the deceased according to the personal law of intestate succession applicable to him/her;

(b) that we do not intend to obtain any grant of legal representation to the estate of the deceased;

(c) that we are the only persons entitled to the properties and assets of the deceased, as such executors/heirs as on intestacy.

4. We have requested you to pay the said balance in the said account(s) to all/……………………………………of us the undersigned

............................................................................................................................(Names of persons to whom payment is to be made)

.......... ......……………………………………………………………………………………

which you have agreed to do on the faith and strength of and relying on my/our above repre -sentation and on my/our executing such indemnity in your favour as is hereinafter appearing.

5. In consideration of above premises, I/We so as to bind myself / ourselves jointly and each severally and my/our respective heirs, executors, administrators, estate and effects jointly and severally undertake and agree with you, your successors and assigns as follows:

(a) to keep you safe and indemnified against all claims, demands, actions, proceedings, losses, damages, costs, charges and expenses ( the legal costs being between attorney and client) which may be made or brought or commenced against you or be paid, sustained, suffered or incurred by you howsoever, as a consequence direct or indirect of your paying the said sum in the above accounts to me/us without insisting on a grant of legal representation

(b) to pay to you on demand the amount of any such losses, damages, costs, charges and expenses together with interest at………%p.a. from the date of payment by you until reimbursement by me / us.

CHAPTER – 2 DEPOSITS GENERAL 118Yours faithfully,

………………………….

………………………….

………………………….

In consideration of the premises, we the undersigned

...............………………………………………………………………………………………[Name (s) of surety(ies)]

…………………………………………………………………………………………………..

jointly and severally guarantee to you, Bank of India, the payment of all moneys due under the aforesaid indemnify by the executants thereof

1. Signature______________________

Name ________________________

Occupation____________________

Address_______________________

______________________________

2. Signature______________________

Name ________________________

Occupation____________________

Address_______________________

______________________________

Appendix XXXI(Paragraph 127.A)


RECEIPT

Received with thanks from Bank of India, _________________ branch, a sum of Rs.

_______________ (Rupees _____________________________ only) by Banker’s Cheque

No.________________ dated ____________ in favour of

____________________________________________________ in full and final settlement

of my/our claim as successor on the balance in ___________ Account(s)

No(s).______________ standing in the name of the deceased Shri/Smt/Kum.

________________________________. I/We do not have any other claim from the Bank

henceforth.

Place:

Date:

(Signature of all the legal heirs @

Over a revenue stamp)

Appendix XXXII(Paragraph 127.A)


DECLARATION in case funds are settled in favour of a Minor

I,-------------------------- father and natural guardian of -------------------- hereby certify that the proceeds of your Banker’s Cheque No.----------------------------- dated----------- favoring ------------------- issued by you in settlement of the balance in account number ----------------- of Late----------------------------------------------will be utilized for the benefit of the minor only.

________________________ Father and Natural Guardian

Appendix XXXIII(Paragraph 127.A)

CHAPTER – 2 DEPOSITS GENERAL 121Check-list of Documents

Settlement of Claims in respect of Deceased Depositors

Claims Document obtained : Yes/No

1.Accounts with Nomination clause:(i) Application for settlement of claim in deceased depositors’

accounts from Nominee/ Guardian of nominee – Annexure I

(ii) Copy of Death Certificate (Verified with original)

(iii) Identify proof (Ration Card, Election ID Card, PAN Card or Passport or any other satisfactory proof of identification acceptable to the bank or proof of authority of legal heir(s) wherever applicable)

1. Joint Accounts with Either or Survivorship clause:(i) Application for settlement of claim in deceased depositors’

accounts from Survivor(s) – Annexure I

(ii) Copy of Death Certificate (Verified with original)

3. For cases other than Nomination/Joint Accounts without survivorship clause:

(i)Application for settlement of claim in deceased depositors’ accounts from legal heirs – Annexure II

(ii) Copy of Death Certificate

(iii) Letter of Indemnity signed by claimant(s) and Sureties – Annexure III

4. RECEIPT - Annexure IV

Appendix XXXIV(Paragraph 127.A)

Authority Letter for pipeline credits


From ______________________________________________________________________________________________________

ToThe Branch Manager,Bank of India,___________________ Branch

Dear Sir,Re: Deceased Account Late Shri/Smt…............………………….. Account No(s)………….......................…

I/We advise the demise of Shri/Smt. _______________________________________________ on __________________. He/She holds the above account(s) at your branch. The account is in the name(s) of:______________________________________________________________________.

I/We,……............…………..............………..............................................................................…………............................................................Spouse/son/daughter/...................(if any other relation - pl.specify) of Shri/Smt..............………………..…………………............ (deceased) residing at................................. ………………………………………………….……………………………………………………......... am the registered nominee / joint account holder / legal heirs in the above accounts.

I/We submit photocopy of the following document(s) together with originals. Please return the original to us after verification.

Death Certificate issued by ______________________Identity proof (required in nomination cases) __________________

Please open an account styled as “Estate of Shri _________________________________________, the Deceased’ where all the pipeline flows in the name of the deceased account holder be allowed to be credited for next ______ months and settle our claim as per the rules after the pipeline credits are received in this account.

Place: Yours faithfully,Date:

(Claimant(s))

Witness : 1.Magistrate or judicial Official or2.An Officer of the Central or State Government

1. Name ................................................................ Address ................................................................. ...........................................................................

.... ...........................................................................

CHAPTER – 2 DEPOSITS GENERAL 123 or 3. An officer of a bank

or4. Two persons acceptable to the bank

Signature ........................................................... 2. Name .................................................................

Address ................................................................ ..........................................................................

.... . ........................................................................ Signature ..........................................................


Appendix XXXV(Paragraph 134)

Application Form for settlement of claims in missing depositors’ accounts (To be used when account has nomination or is a joint account with survivorship clause)


From __________________________________ __________________________________ __________________________________

To The Branch Manager, Bank of India, ___________________ Branch

Dear Sir, Re: Missing Depositors’ Account Shri/Smt…............………………….. Account No(s)………….......................…

1. I/We advise that Shri/Smt. _________________________________________ is missing from _________________and is not traceable. He/She holds the above account(s) at your branch. The account is in the name(s) of:_________________________________________________.

A. In case of Nomination *

I,……………………………………………………………………………...…son/daughter of Shri………………..…… ………………………………………………..residing at …………………………………… …………………………… ..…………………….……………………………………………………………………………………………………am (i) the registered nominee in the above account(s).

(ii) the person authorized to receive payment on behalf of Master / Miss ........…………………….. who is the nominee in the above account(s) and is a minor as on the date of this claim.

Please settle the balance in the account in the name of the nominee. I/we note to receive the payment as trustee(s) of the legal heirs of the missing person.

B. In the case of joint account with survivorship clause *

I/We request you to delete the name of missing person and continue the account in my /our name(s) with same mode of operations.

2. I/We submit photocopy of the following document(s) together with the originals. Please return the original to us after verification.

i. Court Order issued by Hon’ble Judge (if obtained, the following documents listed below need not be submitted)

ii. Identity proof (of claimants required in all cases)

iii. Copy of FIR lodged with Police authority.

iv. Certificate issued by Police authorities that such missing person is not traceable.

v. The report of non-traceability of missing person by the Police should be of a date after 7 years from the date of registration of FIR and enquiry by the Police authority.

vi. Declaration by the Nominee /Legal Heirs of the missing person/depositor that the missing person has not been heard of for the last seven years.



Date: (Claimant(s))

Witness :

1.Magistrate or judicial Official 1. Name …………………………………………or Address……………………………………….2.An Officer of the Central or …………………………………………………State Government …………………………………………………or Signature ....................................................

3. An officer of a bank 2. Name ..........................................................or Address……………………………………….4. Two persons acceptable to the …………………………………………………

Signature………………………………………


Appendix XXXVI(Paragraph 134)

CHAPTER – 2 DEPOSITS GENERAL 126Application Form for settlement of claim in missing depositors’ accounts

(To be used when account has no nomination or is a joint account without survivorship clause)

Date ____________ To, Bank of India, _____________ Branch.

Dear Sirs,

Re : Claim for payment of Balance in the Account of _____________________ (missing person) I/We advise that Shri/Smt. _______________________ is missing from______________and is not traceable. He/She holds the above account(s) at your branch. The account(s) is/are in the name of:__________________________________ _____ ________ ____ __ __ ____.

I/We lodge my/our claim for the balances with accrued interest lying to the credit of the above named depositor who is missing. I / we am / are the legal heirs of the above named missing depositor and lodge my/our claim for payment as per the bank’s rules and discretion. The relevant information about the missing person and the legal heirs are as under :

Name Age Sex Occupation Relationship with the missing person

1. Missing person - - 2. Claimants/s, Hiers

(proof of identity enclosed) 1.

2. 3.

3. Two sureties with address 1. - 2. -

4. Claim Amount (please enclose passbook / cheque book / TDR as applicable)

Type of

A/c

No. Amount

SB CD RD TDR

Total 5. Other Assets & Liabilites of the missing person (a) Assets (Movable other than claimed amount. Please include

deposits with other Banks/branches, PF & LIC claims/receivables etc.) Details Value Their claimant

(b) Immovable Properties Details Value Their Clamant

(c) Liabilities (including tax liability and unsatisfied creditors, if any

6. Whether missing person left a will Yes/No 7. Whether any legal representation obtained like

succession certificate etc.? Yes/No

8. Name or Names of the Guardian/s of the minor Children of the Depositor (a) Whether Natural Guardian (b) Whether Guardian appointed by a Court of Law in India. If so, attach a certified copy or duly attested copy of such Order

: _______________________ : _______________________ : ______________________

CHAPTER – 2 DEPOSITS GENERAL 127(c) In whose custody the Minor/Minors is / are? __

9 Any other facts which the applicant(s) wants to state in support of his/her/their claim.

I/We submit the following documents. Please return the original Court Order issued by Hon’ble Judge to us after verification:

i. Identity proof (of claimants required in all cases)

ii. Copy of FIR lodged with Police authority.

iii. Certificate issued by Police authorities that such missing person is not traceable.

iv. The report of non-traceability of missing person by the Police should be of a date after 7 years from the date of registration of FIR and enquiry by the Police authority.

v. Declaration by Legal Heirs of the missing person/depositor that the missing person has not been heard of for the last seven years.

vi. Indemnity letter regarding payment of balance in the account of a missing person/account holder.

We request you to pay the balance amount lying to the credit of the above named missing depositor to …………………………………….on my/our behalf.

I/We hereby solemnly affirm that the above statements are true and correct to the best of my/our knowledge and belief.


Date :

Encl.:

Name of Claimant Address A/c with us, Signature of Claimant(s) if any & Type

1.

2.

3.

Appendix XXXVII(Paragraph 134)

Indemnity Letter (for payment of balance in account of missing depositors’ accounts)

CHAPTER – 2 DEPOSITS GENERAL 128(To be used for cases other than nomination or is a joint account without survivorship clause)

Name:……………………………….. Address:……………………………. ……………………………………….. Date :

To: Bank of India. ______________________Branch. Dear Sirs.

Re.: Payment of balance of Rs._______________in the account of Mr./Mrs./Miss ---------------------------------------(Missing Depositor)

Mr./Mrs./Miss…………………………………………………….had the Current Account No……………….Savings Bank Account No.………………….. /Fixed/Short/Monthly Income Certificate / Double Benefit Deposit Account No…………………./Recurring Deposit Account No……………..with your Bank.

2. Mr./Mrs./Miss……………………………………… went missing from …………. and is not traceable, leaving at the time of his/her going missing the credit balance(s) in his/her respective account(s) as under : (a) Current Account No. : Rs._______________ (b) Savings Bank Account No. : Rs._______________ (c ) Fixed/Short/Monthly Income Certificate/ / Double Benefit Deposit

Account no. : Rs._______________ (d) Recurring Deposit Account no. : Rs._______________

_______________________ Total : Rs……………………..

I/We have represented to you :

(a) that the depositor went missing without leaving a Will and I/We the undersigned (i)………………………………………………………………………….., (ii) …………………………………………………………………………., (iii)……………………………………………………………..……….etc., am/are the only heir(s) of the missing depositor according to the law of intestate succession applicable to him/her

OR

(a) that the depositor went missing leaving his/her last Will and testament dated…………….and we the undersigned

....................................................................................………………….…

(Names of the Executors) ...................................................…………….

…………………………………………………………….… are the executors thereof; and that has he/she went missing without leaving the Will, We the undersigned namely …………………………………………………………………………………………………..

(Names of the Heirs) ………………………………………………………………………………………………….. would have been the heirs of the missing depositor according to the personal law of intestate succession applicable to him/her;

CHAPTER – 2 DEPOSITS GENERAL 129(b) that we do not intend to obtain any grant of legal representation to the estate of the missing depositor;

(c) that we are the only persons entitled to the properties and assets of the missing depositor, as such executors/heirs as on intestacy.

4. We have requested you to pay the said balance in the said account(s) to all/……………………………………of us the undersigned

....................................................................................................................................... (Names of persons to whom payment is to be made)

.......... ......……………………………………………………………………………………... which you have agreed to do on the faith and strength of and relying on my/our above representation and on my/our executing such indemnity in your favour as is hereinafter appearing.

5. In consideration of above premises, I/We so as to bind myself / ourselves jointly and each severally and my/our respective heirs, executors, administrators, estate and effects jointly and severally undertake and agree with you, your successors and assigns as follows:

(a) to keep you safe and indemnified against all claims, demands, actions, proceedings, losses, damages, costs, charges and expenses ( the legal costs being between attorney and client) which may be made or brought or commenced against you or be paid, sustained, suffered or incurred by you howsoever, as a consequence direct or indirect of your paying the said sum in the above accounts to me/us without insisting on a grant of legal representation

(b) to pay to you on demand the amount of any such losses, damages, costs, charges and expenses together with interest at………%p.a. from the date of payment by you until reimbursement by me / us.

Yours faithfully, …………………………. …………………………. ………………………….

In consideration of the premises, we the undersigned ...............………………………………………………………………………………………

[Name (s) of surety(ies)] ………………………………………………………………………………………………….. jointly and severally guarantee to you, Bank of India, the payment of all moneys due under the aforesaid indemnify by the executants thereof 1. Signature______________________

Name ________________________ Occupation____________________ Address_______________________ ______________________________

2. Signature______________________ Name ________________________ Occupation____________________ Address_______________________ ______________________________

Appendix XXXVIII(Paragraph 134)

RECEIPT


Received with thanks from Bank of India, _________________ branch, a sum of Rs. _______________ (Rupees _____________________________ only) by Banker’s Cheque No.________________ dated ____________ in favour of ____________________________________________________ in full and final settlement of my/our claim as successor on the balance in ___________ Account(s) No(s).______________ standing in the name of the missing depositor Shri/Smt/Kum. ________________________________. I/We do not have any other claim from the Bank henceforth. Place: Date:

(Signature of all the Legal heirs / Nominee Over a revenue stamp)

----------------------------------------------------------------------------------------------------------------------------Appendix XXXVIX

(Paragraph 134)

DECLARATION in case funds are settled in favour of a Minor

I,-------------------------- father and natural guardian of -------------------- hereby certify that the proceeds of your Banker’s Cheque No.----------------------------- dated----------- favoring ------------------- issued by you in settlement of the balance in account number ----------------- of---------------------------------------------will be utilized for the benefit of the minor only.

________________________ Father and Natural Guardian

Appendix XXXX(Paragraph 134)

Check-list of DocumentsSettlement of Claims in respect of Missing Depositors

CHAPTER – 2 DEPOSITS GENERAL 131Claims Document

obtained : Yes/No

1. Accounts with Nomination clause:

I )Application for settlement of claim in missing depositors’ accounts from Nominee – Annexure I ii) Court Order issued by Hon’ble Judge iii) Identify proof in all cases (Ration Card, Election ID Card, PAN Card or Passport or any other satisfactory proof of identification acceptable to the bank wherever applicable)

iv) Copy of FIR lodged with Police authority. v) Certificate issued by Police authorities that such missing person is not traceable. vi)The report of non-traceability of missing person by the Police should be of a date after 7 years from the date of registration of FIR and enquiry by the Police authority. vii)Declaration by the Nominee of the missing person/depositor that the missing person has not been heard of for the last seven years. 2. Joint Accounts with Either or Survivorship or Former or Survivorship clause:

I ) Application for settlement of claim in missing depositors’ accounts from Nominee / Survivors– Annexure I ii) Court Order issued by Hon’ble Judge iii) Identify proof in all cases (Ration Card, Election ID Card, PAN Card or Passport or any other satisfactory proof of identification acceptable to the bank wherever applicable)

iv) Copy of FIR lodged with Police authority. v) Certificate issued by Police authorities that such missing person is not traceable. vi) The report of non-traceability of missing person by the Police should be of a date after 7 years from the date of registration of FIR and enquiry by the Police authority.

vii) Declaration by the Survivors of the missing person/depositor that the missing person has not been heard of for the last seven years. 3. For cases other than Nomination/Joint Accounts without survivorship clause: i) Application for settlement of claim in missing depositors’ accounts from legal heirs – Annexure II ii) Court Order issued by Hon’ble Judge . iii) Identify proof in all cases (Ration Card, Election ID Card, PAN Card or Passport or any other satisfactory proof of identification acceptable to the bank or proof of authority of legal heir(s) wherever applicable) iv) Copy of FIR lodged with Police authority. v) Certificate issued by Police authorities that such missing person is not traceable. vi) The report of non-traceability of missing person by the Police should be of a date after 7 years from the date of registration of FIR and enquiry by the Police authority.

vii) Declaration by the Nominee of the missing person/depositor that the missing person has not been heard of for the last seven years. viii) Indemnity letter regarding payment of balance in the account of a missing person/account holder. 4. RECEIPT - Annexure IV

Appendix XXXXI(Paragraph 134)

Settlement of claims in various types of accounts / Facilities after adhering to the procedure given in the circular.

CHAPTER – 2 DEPOSITS GENERAL 1321. With Nomination

Sr. No.

Nature of Account

Single Depositor

Joint A/c (operated jointly)

Joint A/c (Either or Survivor)

Joint A/c (Former or Survivor)

Joint A/c (Anyone or Survivors)

A Savings / Current A/c

Nominee

I. On missing of one depositor – Legal Heirs of missing depositor + survivors II. On missing of all depositors - Nominee

I. On missing of one depositor –Survivor II. On missing of both depositors - Nominee

I. On missing of Former –Survivor II. On missing of both depositors - Nominee

1. On missing of one or more depositor/s – Survivor/s II. On missing of all depositors - Nominee

B. Term Deposit Account

- do - (on maturity of deposit)





C. Premature withdrawal of Term Deposit

- do - (As per terms of contract)





2. Without Nomination

Sr. No.

Nature of Account

Single Depositor

Joint A/c (operated jointly)

Joint A/c (Either or Survivor)

Joint A/c (Former or Survivor)

Joint A/c (Anyone or Survivors)

A Savings / Current A/c

Legal Heirs or person mandated by them

I. On missing of one depositor – Legal Heirs of missing depositor + survivors II. On missing of all depositors – Legal heirs of all the depositors

Survivor II. On missing of both the depositors – Legal heirs of all the depositors

Survivor II. On missing of both the depositors – Legal heirs of all the depositors

I. On missing of one or more depositor/s – Legal Heirs of missisng depositor + survivors II. On missing of all depositors – Legal heirs of all the depositors

B. Term Deposit Account






C. Premature withdrawa

- do - (As per terms of





CHAPTER – 2 DEPOSITS GENERAL 133l of Term Deposit

contract) contract) contract) contract)

3. Illustrations on joint accounts A. Joint Deposit Accounts (without nomination)

Deposit Account of With survivor clause Without survivor clause A + B A is missing

B can operate B + Legal heirs of A

Both A + B are missing

Legal heirs of A + Legal heirs of B

Legal heirs of A + Legal heirs of B

A + B + C A is missing

B + C can operate B + C+ Legal heirs of A

A + B are missing

C can operate C + Legal heirs of A + Legal heirs of B

A + B + C are missing

Legal heirs of all Legal heirs of all

B. Joint Deposit Accounts (with nomination)

Deposit Account of With survivor clause Without survivor clause A + B A is missing

B can operate B + Legal heirs of A

Both A + B are missing

Nominee Nominee

A + B + C A is missing

B + C can operate B + C+ Legal heirs of A

A + B are missing

C can operate C + Legal heirs of A + Legal heirs of B

A + B + C are missing

Nominee Nominee

CHAPTER 2

Documents

Transcript of CHAPTER 2