Procedure for Opening Bank Accounts

Procedure for Opening Bank Accounts:

Today Banks have emerged as important financial institutions. Banks provide a safe environment and help us to manage our financial transactions. To avail professional banking service, it is mandatory for every individual to open a bank account. Opening a bank account is not a difficult task. To open a bank account we have to follow simple seven steps.

1. Decide the Type of Bank Account you want to Open:

There are several types of bank accounts such as Saving Account, Recurring Account, Fixed Deposit Account and Current Account. So the decision regarding the type of account to be opened must be taken.

2. Approach any Bank of Choice & Meet its Bank Officer:

Once the type of account is decided, the person should approach a convenient bank. He has to meet the bank officer regarding the opening of the account. The bank officer will provide a proposal form (Account Opening Form) to open bank account.

3. Fill up Bank Account Opening Form - Proposal Form:

The proposal form must be duly filled in all respects. Necessary details regarding name, address, occupation and other details must be filled in wherever required. Two or three specimen signatures are required on the specimen signature card. If the account is opened in joint names, then the form must be signed jointly. Now a days the banks ask the applicant to submit copies of his latest photograph for the purpose of his identification.

4. Give References for Opening your Bank Account:

The bank normally required references or introduction of the prospective account holder by any of the existing account holders for that type of account. The introducer introduces by signing his specimen signature in the column meant for the purpose The reference or introduction is required to safeguard the interest of the bank.

5. Submit Bank Account Opening Form and Documents:

The duly filled in proposal form must be submitted to the bank along with necessary documents. For e.g. in case of a joint stock company, the application form must accompany with the Board’s resolution to open the account. Also certified copies of articles and memorandum of association must be produced. The requirements for opening account are:

·              Completed application form

·              Photos of the individuals opening the account

·              Initial deposit amount

·              Copy of Aaadhar Card, Voter ID card; ration Card, Driving License or passport as proof of address

·              Specimen signature card

6. Officer will verify your Bank Account Opening Form:

The bank officer verifies the proposal form. He checks whether the form is complete in all respects or not. The accompanying documents are verified. If the officer is satisfied, then he clears the proposal form.

7. Deposit Initial Amount in Newly Opened Bank Account:

After getting the proposal form cleared, the necessary amount is deposited in the bank. After depositing the initial money, the bank provides a pass book, a cheque book and pay in slip book in the case of savings account. In the case of fixed deposits, a fixed deposit receipt is issued. In the case of current account, a cheque book and a pay in slip book is issued. For recurring account, the pass book and a pay in slip book is issued.