Types of Bank Ac

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A Project report

On

TYPE OF BANK ACCOUNTS

IN

THE NAWANSHAHR CENTRAL

CO-OPERATIVE BANK LTD.(NAWANSHAHR)

SUBMITED FOR PARTIAL FULFILLMENT OF THE

MASTER DEGREE OF COMMERCE FOR

G.N.D.U AMRITSAR

(SESSION 2011-2012)

SUBMITTED TO: SUBMITTED BY:

PROF. S.B.JOHAR MANJEET KAUR

(HEAD OF COMMERCE DEPERTMENT) ROLL NO.1566

M.COM ( 2nd YEAR)

R.K. ARYA COLLEGE


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NAWANSHAHR

PREFACE

As a part to M.com, every student has to write the project

report.Every student of this course has to undergo training in

an industrial or commercial origination.By training,we know

about the functioning of actual business and working condition

under which we have to work in future.

I underwent my training at Central Co-operative Bank

Ltd.Nawanshahr for a period of 6 weeks.Central Co-operative

Bank is an institution on co-operative basis and doing ordinary

banking business.I too have learnt from this experience and so

am writing about the Bank and finance department as I have

understood it.

The study has been written in a very simple language.Every

effort has been made to avoid any type of bias or

misunderstanding while writing the report.


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ACKNOWLEDGEMENT

This project report would have not possible without the kind

assistance and guidance of many persons who indeed were

very helpful,co-operative,kind during the during the entire

course of my assignment. I would like to take this opportunity to

express my heart-felt appreciation for all those concerned.

I am grateful to Mr.S.B Johar (Head of Department) and the

official of GNDU Amritsar for giving me an opportunity to

Work on this project report.I would like to express my sincere

thanks to my worthy guide Mr.S.B.Johar (Lecturer in

Commerce Department,R.K. Arya College,Nawanshahr) for thekeen interest and guidance.

On the same term I want to express my indebtedness and

sincere gratitude to Mr.Nirmaljit Singh and K.K Gogana who

provided the desired information and other technical facilities

during the tenure of the project work.


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THE NAWANSHAHRCENTRAL COOPERATIVE BANK

LTD.


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Content of report

Particular Page No.

Introduction 1-4

Definition 5

Objectives of Bank 5

Principal of Co-Operative Bank 6

Available Accounts in Banks 7

Loans Available in Bank 7


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INDEX

Particular Page no.

Introduction to Bank 13-15

Facilities of Bank 17-18

Types of Bank Accounts 20-22

1. Fixed Deposits Accounts 24

Feature of Fixed Deposits A/c 25

Advantages of Fixed Deposits A/c 26-27

Drawback of Fixed Deposits A/c 28

Precaution 29

2. Recurring Deposit Account 31

Feature of Recurring Deposit A/c 32

Advantages Recurring Deposit A/c 33-34

3. Saving Account 36

Document Require for opening a Saving A/c 38

Features of Saving A/c 39


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Types of Saving A/c 40-43

Advantages Saving A/c 44-45

Disadvantages of Saving A/c 46

4. Current Bank Account 48-49

Features of Current Bank A/c 50

Advantages of Current Bank A/c 51-52

Advantages opening an A/c 53-55

Operation of bank account 61-65

Closing a bank account 67-69

Suggestion 71-74

Bibliography 76


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INTRODUCTION

In January 1934 devoted cooperates of the Nawanshahr

Subdivision took a very wise and farsighted step by organizing

this bank having a separate entity in Jalandhar district by

amalgamation of two Cooperative Unions namely Dhaha and

Jandiali with working capital of Rs.2.25 Lac.This bank is

situated in a small rented room in local Gurudwara Sahib in

Nawanshahr.On formation of Nawanshahras district,

Balachaur Sub-division was amalgamated in this bank w.e.f

01.10.1996.This bank is serving small, marginal,other framers

and weaker sections of the society in rural as well as urban

areas in Nawanshahr District with 47 branches.All the branches

are successful.Per branch business exceed Rs.15 core and all

B.Os are earning profit.Consequent of good results, RBI has

granted Banking license to us in the year 1990. Our bank has

won four out of six NABARD BEST PERFOMANCE AWARDS

for the year 1995-96,1996-97,1998-99 and 1999-2000 being

declared as best amongst the Central Co-operative banks of

Punjab state and Second Prize for the 2000-2001

(1)


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Owned Funds

This bank tops all Central Co-operative Banks in respect of

own funds in the Punjab State.Our bank is on very sound

footings,which is evident from the fact owned funds have

touched a new height of Rs.118.21 core due to recurring profits

in the successive years. Owned funds are cost free to the bank

and are an sample proof of our good financial health.

(2)


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Profits for the year

Year Profit (in lacs)

193419401950196019782000

2001200220032004200520062007

20082009

0.040.040.090.3934.08815.90

960.89984.071153.511322.821046.46796.75741.75

658.581203.74

Levying of Income Tax for the financial year 2006-07 has

lowered our profit.Our financial margin is 3.68 and net margin

being 1.64 per hundred

(3)


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Meaning of co-operative Bank

Co-operative Bank is an institution on co-operative basis and

doing ordinary banking business.These banks are funded by

collecting funds through shares, deposits etc.They are

concerned with rural credit and provide financial assistance to

agricultural and rural activities.In India,huge co-operative

institutions are operating.

In our country,co-operative institutions are started to look

after the needs of the agriculturists.In 1902,provision was made

to start primary co-operative societies at Village level to grant

short term loans.In 1912,Land Development banks are

initiated. They granted long term loans to enable the farmer to

buy farm equipments like tractors, o make permanent

improvement and to repay past debts.In 1912,provision was

made to establish District Co-operative Banks at the State

level.

(4)


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Definition of Co-operative Ban k

A cooperative bank is an autonomous association of

persons united voluntarily to meet their common economic ,

social and culture needs and aspiration through a jointly owed

and democratically controlled enterprise.

Objectives of the Banks

1.Commitment to quick services.

2.Achievement of customer satisfaction.

3.Qualitative Services.

4.Cordial relationship with public.

5.Service with smile.


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(5)

Principles of Co-operative Bank

1.Voluntary and open membership: Co-operative banks

are voluntary organizations,open to all persons.

2.Democratic member control: Co-operative banks are

democratic organizations,controlled by their members,whoactively participate in setting their polices and making

decisions.

3.Member Economic participation: Members contribute

equality to and democratically control the capital of their co-

operative banks.A small part of the capital is usually the

common property of the co-operative banks.

4.Autonomy and independence: Co-operative banks are

autonomous,self help organizations controlled by their

members.

5.Education,Training and Information: Co-operative

banks provide education and training for their members,


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elected representatives,managers and employees so that they

(6)

can contribute effectively to the development of their co-

operative banks.

Available Accounts in Bank

1.SAVING DEPOSIT ACCOUNT

2.FIXED DEPOSIT 1ACCOUNT

3.CURRENT DEPOSIT ACCOUNT

4.RECCURING DEPOSIT ACCOUNT

Loan available in Co-operaive bank

1.SALARY LOAN

2.NON SALARY LOAN

3.PERSONAL LOAN

4.TWO WHEELER LOAN

5.NON FARM SECTOR

6.HOUSE LOAN

7.URBAN HOUSE LOAN


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8.HOUSE LOAN RURAL

9.LOAN AGAINST PROPERTY

10. CCT LOAN (7)

In The Distt, The Co-operative Bank Has 45Branches

They areBRANCH PHONE NO.

1. ALLACHAUR 01823-223647

2. AUR 01823-245023

3. BACHHAURI 01885- 273205

4. BALACHAUR 01885-220149

5. BANGA 01885-260075

6. BAJID PUR 01823-257163

7. BEHLOOR KALAN 01823-238136

8. BEHRAM 01823-270227

9. DOPALPUR 01823-244617

10. EV.BR.NSR 01823-263177


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11. GARCHA 01823-234263

12. GHATARON 01823-255753

(8)13. GHUMAN 01823-272015

14. GOBINDPUR 01823-281853

15. HAKIMPUR 01823-276062

16. JADLA 01823-253024

17. KAHMA 01823-278029

18. KARNANA 01823-279014

19. KATARIAN 01823-230060

20. KATHGARH 01885-250622

21. KHANKHANNA 01823-275603

22. KULTHAM 01823-283808

23. LADHANA JHIKKA 01823-263557

24. LANGROYA 01823-250038

25. MAHIL GAHALAN 01823-273038

26. MAIN BR, NSR 01823-509493

27. MAJARI 01885-238290


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28. MEHLI 01823-283030

29. MUKANDPUR 01823-276023

(9)30.PALLI JHIKKI 01823-273349

31. PATHLAWA 01823-281366

32. PHAMBRA 01823-245068

33. POJEWAL 01885-244608

34. R.P.DABBA 01823-279017

35. RAHON 01823-240031

36. RAKRAN DHAHAN 01885-238338

37. SAHIBA 01823-232434

38. SANDHAWAN 01823-270240

39. SARHAL QAZIAN 01823-247227

40. SAROYA 01823-230029

41. SUGAR MILL 01823-222634

42. SUJJON 01823-273485

43. TONSA 01881-273727

44. URAPAR 01823-248032


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45. USMANPUR 01823-244011

(10)

THE NAWANSHAHR CENTRAL CO-OPERATIVE

BANK LTD.(S.B.S Nagar) PUNJAB

List of Board of Director

1. SUCHA SINGH ARK MANAGING DIRECTOR

2. CH. GURMAIL SINGH NAGRA CHAIRMAN

3. S. GURMINDER SINGH VICE CHAIRMAN

4. S. DILDAAR SINGH DIRECTOR

5. S. RAGHVIR SINGH DIRECTOR

6. S. JASKAMAL SINGH [TALWANDI FATTU] DIRECTOR

7. S. MOHAN SINGH BAJWA DIRECTOR


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8. S. BALVIR SINGH DHILLON DIRECTOR

9. S. SATVIR SINGH PALLI JHIKKI DIRECTOR

(11)

INTRODUCTION TOTYPES OF BANK

ACCOUNTS


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INTRODUCTION:

A bank is a financial institution that serves as a financial

intermediary. The term "bank" may refer to one of several

related types of entities:

A central bank circulates money on behalf of a

government and acts as its monetary authority by

implementing monetary policy,which regulates

the money supply.

A commercial bank accepts deposits and pools those

funds to provide either directly by lendin g,or indirectly

by investing through the capital markets. ithin theglobal financial markets, these institutions connect

market participants with capital deficits (borrowers) to

market participants with capital surpluses (investors

and lenders) by transferring funds from those parties

who have surplus funds to invest (financial assets) to

those parties who borrow funds to invest in real

assets.
http://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Financial_markethttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Monetary_policyhttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Financial_market


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(13

)

A savings bank (known as a "building society" in

the United Kingdom) is similar to a savings and loan

association (S&L).They can either be stockholder

owned or mutually owned, in which case they are

permitted to only borrow from members of the finance

Italic textile cooperative.The asset structure of savings

banks and savings and loan associations is

similar,with residential mortgage loans providing the

principal assets of the institution's portfolio.

Open bank account - the most common and first

service of the banking sector.There are different types

of bank account in Indian banking sector.The bank

accounts are as follows:

Bank Savings Account - Bank Savings Account can be

opened for eligible person / persons and certain

organisations / agencies (as advised by Reserve Bank

of India (RBI) from time to time)
http://en.wikipedia.org/wiki/Savings_bankhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Cooperativehttp://en.wikipedia.org/wiki/Savings_bankhttp://en.wikipedia.org/wiki/Building_societyhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Savings_and_loan_associationhttp://en.wikipedia.org/wiki/Cooperative


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(14)

Bank Current Account - Bank Current Account can be

opened by individuals / partnership firms / Private and

Public Limited Companies /HUFs / Specified Associates

/ Societies / Trusts, etc.

Bank Term Deposits Account - Bank Term Deposits

Account can be opened by individuals/partnership firms

/Private and Public Limited Companies/HUFs/ Specified

Associates / Societies / Trusts, etc.

Bank Account Online - With the advancement of

technology, the major banks in the public and private

sector has facilitated their customer to open bank

account online.Bank account online is registered

through a PC with an internet connection. \The advent

of bank account online has saved both the cost ofoperation for banks as well as the time taken in opening

an account.


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(15

)


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Facilitates ofBank Account


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Facilitates of Banks Account

1.Bank account facilitates a safe custody of money

the bank is the custodian of cash.As and when the

account holders needs the money can withdraw the

same depending upon the type of account.

2.Bank account helps in making payments

The bank account holder can make payment to third parties

through the savings and current account.The payment may

be regarding electricity bills,insurance premium,etc.The bank

also makes direct payment on the standing instructions of

the customer.

3.Bank account helps in collection of money

The bank can directly collect money of the customer in

respect of dividend,salary pension or from debtors.The

collected money is then deposited in customer's bankaccount.

(17)


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4.Bank account holders get advances and loans

The current account holder can obtain an overdraft facility

from his bank. The recurring and fixed deposit account

holders can get a loan upto 75% of the amount to their

credit.The savings account holders can also obtain loans to

purchase computers and such other equipments.

5.Bank account helps in smooth transactions

The bank account makes it possible for the businessmen to

conduct their business operations smoothly not only in the

domestic trade but also in the foreign markets.

6.Bank account holders get a safe deposit locker

The bank provides safe deposit locker facility to its accountholders to keep their valuables like gold jewellery,sharecertificates,property documents,etc.

(18)


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Types of BankAccounts


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TYPES OF BANK ACCOUNTS

A.Term Deposit Account.

1.Fixed Deposit Account

2.Recurring Deposit Account

B.Demand Deposit Account

1.Saving Deposit Account

2.Current Deposit Account

A.Term Deposit Account: Deposit accepted by bank which

is repayable only after a fixed period of time.In other

words we can say the deposit which is not repayable on

demand.

Following can be term deposit:

1.Fixed account

2.Reccuring account


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(20)

B.Demand Deposit Account: It refers to deposit received

by banker, repayable on demand i.e.customer can

withdraw when they want.

Following can be demand deposit:

1.Saving bank account

2.Current account

Traditional Types of Bank Account

Saving Accounts Current Accounts Fixed Deposit AccountsRecurring Deposit Accounts

Modern Types of Bank Account

Now a days banks have introduced new and innovative

deposits plans as follows:

Saving Account with Zero balance

Saving Salary Account

Student Deposit Scheme

Janta Deposit Scheme

Home Safe Deposit Account etc.


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(21)

All the above different kinds of bank account differs from

each other mainly on the following grounds:\

1. Minimum balance to be maintained.

2. Restriction on No. of withdrawals.

3. Length of notice required to be given for

withdrawal.


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(22)


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Fixed DepositAccount


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Fixed Deposit Account

The account which is opened for a particular fixed period

(time) by depositing particular amount (money) is known as

Fixed (Term) Deposit Account.

The term 'fixed deposit' means that the deposit is fixed and

is repayable only after a specific period is over.

Under fixed deposit account, money is deposited for a fixed

period say six months, one year,five years or even ten

years.The money deposited in this account can not be

withdrawn before the expiry of period.

The rate of interest paid for fixed deposit vary (changes)

according to amount, period and from bank to bank.

(24)


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Features of Fixed Deposit Account

The main features of fixed deposit are:

1.The individuals to earn a higher rate of interest on their

surplus funds (extra money).

2.The amount can be deposited only once. For further such

deposits, separate accounts need to be opened.

3.The period of fixed deposits range between 15 days to 10years.

5.A high interest rate is paid on fixed deposits.The rate of

interest may vary as per amount, period and from bank to

bank.

6.Withdrawals are not allowed.However,in case of

emergency, banks allow to close the fixed account prior to

maturity date. In such cases, the bank deducts 1%

(deduction percentage may vary) from the interest

payable as on that date.

7.The depositor is given a fixed deposit receipt,which

depositor has to produce at the time of maturity.Thedeposit can be renewed for a further period.


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(25)

Advantages of Fixed Deposit Account

The advantages of fixed deposit account are as follows:-

1.Fixed deposit encourages savings habit for a longer period

of time.

2.Fixed deposit account enables the depositor to earn a high

interest rate.

3.The depositor can get loan facility from the bank.

4.On maturity the amount can be used to make purchases of

assets.

5.The bank can get the funds for a longer period of time.

6.The bank can lend such funds for short term loans to

businessmen.

7.Fixed deposits indirectly boost economic development of

the country.8.The bank can also invest such funds in profitable areas.

9.Various banks offer higher rates of interest to senior

citizens on their fixed deposits than to regular account


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)27(

Drawbacks of Fixed Deposit Account s

The drawbacks of fixed deposit accounts are:

1.Money invested in a fixed deposit grows slower than in

investments such as stocks.

2.The rate of interest offered by banks on fixed deposits is

subject to change according to inflation.If inflation rises,

the interest earnings from a fixed deposit will be

significantly impacted.

3.The account holder is not allowed to withdraw the funds

before the date of maturity.


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(28)

Precautions While Investing in Fixed

Deposit Accounts

Here are some precautions an investor must bear in mind

while investing in fixed deposit accounts:

1.If one has invested in a companys fixed deposit account,

chances are s/he will lose her or his money if the

company goes bankrupt.It is important to read the fine

print. The best option is to open a fixed deposit account in

an established and reputed bank and to ensure this

situation is covered by insurance.

2.The amount one earns on a fixed deposit depends on

whether the bank compounds interest on a quarterly or

monthly basis.A monthly scheme will yield more returnsthan a quarterly scheme.


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Recurring DepositAccount


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Recurring Deposit Account

Recurring deposit account is generally opened for a purpose

to be served at a future date.Generally opened to finance

pre-planned future purposes like,wedding expenses of

daughter, purchase of costly items like land,luxury car,

refrigerator or air conditioner,etc.

Recurring deposit account is opened by those who want to

save regularly for a certain period of time and earn a higher

interest rate.

In recurring deposit account certain fixed amount is accepted

every month for a specified period and the total amount is

repaid with interest at the end of the particular fixed period.


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(32)

Advantage of Recurring Deposit

Account

Advantage of recurring Deposit is:

1. Fixed rate of interest

The rate of interest offered on a recurring deposit is not

floating it remains the same for the entire tenure of the

recurring deposit.

The rate of interest offered varies from bank to bank,and

also depends on the tenure of the recurring deposit.But

the interest rates offered typically range from around 4%

to 10%.

For example,State Bank of India (SBI) offers interest

rates between 4.75% and 10%. Similarly,ICICI Bank

offers interest rates between 3.75% and 9.5%.

2.Loan / Overdraft facility

Many banks provide the facility of a loan or overdraft

against the amount accumulated in your recurring

deposit account.
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9.The bank may also invest such funds in profitable areas.

(33)

What are the prevailing rates f or

recurring deposits

Various banks give different interest rates for different

schemes.There are Kids Specific Recurring Deposit

Schemes too,offered by many banks. All these schemes

offer Interest amount ranging from 7.5% Per Annum to 9.5%

Per Annum, which depends on the Sum Assured,The tenure

opted for, and also depending on various schemes.Many

banks have separate interest schemes made available

exclusive to the senior citizens.Generally an amount of 0.5%

Interest is paid more in almost all of the senior citizens

schemes,which includes Recurring Deposits.


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Meaning of Saving Account

Commercial Banks, Co-operative Banks and Postal

Departments accept deposits by way of opening saving bank

account.The saving bank account is generally opened by

salaried persons or by the persons who have fixed income.

Saving accounts are opened to encourage the people to

save and collect their savings.In India, saving account can

be opened by depositing Rs.100 (US $2.19) to Rs.500 (US

$11).The saving account holder is allowed to withdraw

money from the account two times or three times in a week.

The interest which is given on saving accounts is sometime

attractive, but often nominal.At present the rate of interest is

3.50% p.a in India.The interest rates varies as per amount of

money deposited and its maturity range.It is also subject to

current trend of banking policies in a country.

(36)


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Features of Saving Account

The main features ofsaving account are as follows:-1.The main objective of saving account is to promote

savings.

2.There is no restriction on the number and amount of

deposits.

3.Withdrawals are allowed subject to certain restrictions.

4.The money can be withdrawn either by cheque or

withdrawal slip.

5.The rate of interest payable is very nominal on saving

accounts.At present it is about 3.50% p.a in India.

6.Saving account is of continuing nature.There is no

maximum period.7.A minimum amount has to be kept on saving account.

8.No loan facility is provided against saving account.

(39)


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(40)

Instant Access or Easy Access

Accounts

1Notice Account

Notice accounts generally earn a better rate of interest but

require you to give a certain amount of notice before

withdrawing funds to avoid any penalty.The amount of notice

that needs to be given depends on which account you

choose.

These accounts are becoming less attractive as instant

access accounts have become more competitive and allow

you to withdraw your money immediately.

2.Bonds or term account

For many savers, the most important aspect of any

investment knows that their money is safe and secure.If this

applies to you,then bonds or term accounts could be what

you are looking for.Bonds or term accounts are high interest

savings accounts which offer the most competitive interest

rates but which require your money to be tied up for a

specific period of time.The interest rate on most accounts is


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fixed from opening the account until the maturity date. (41)

The money in the account is tied up for a specific length

of time, usually between 1 to 5 years and you are not usually

allowed to add further funds to your initial deposit once a

bond has been opened.

Most providers do not permit any type of withdrawal

before the maturity date and if withdrawals are allowed then

a penalty will normally be incurred.

3.Regular Savings Accounts

this type of account is aimed at people who can commit to

making regular savings and deposit money into the account

each month.A certain number of monthly payments have to

be made into these accounts each year to prevent loss of

interest or closure.

They often pay superior annual rates of interest by

giving savers an annual bonus payable as interest on top of

their interest rate. However, with some accounts,if you fail to

make the required deposits you will lose the annual bonus.Some accounts limit the amount you can put in each

month and most accounts limit the number of withdrawals

you can make each year,so they aren't much good if you


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Advantages of Saving Account

The advantages of saving account are as follows:-

1.Protection

Most banks and credit unions are insured,which means that

the money deposited into a savings account is safe and

secure.No matter what happens,you will get your money

back.

2.Saving

The entire point of a savings account is to save money.

You can purposefully open a savings account that does not

have an ATM card linked to it to make withdrawing thefunds less convenient.

3.Automatic Deposits and Payments

Automatic payments and deposits can be set up to manage

the account,and your employer can directly deposit money

into the account.This gives you less to worry aboutthroughout the month.

(44)


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Disadvantage of saving accounts

1.Minimum Balance

Many banks require you to maintain a minimum balance in

order to avoid fees on your savings account.For some banks

this is only Rs.500 but others requires as much as Rs.1000minimum.It may take some shopping around to find a

savings account to suit your needs.

2.Interest Rates

Savings accounts have the lowest interest returns of any

place you can keep your money,other than a checkingaccount.If you are looking to make money on interest, a

savings account is not for you.

(46)


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(52)

The large majority of current accounts will

include these basic features:

Cash or Debit Card This handy card can be used to

withdraw money or check the balance on your account

through a large cash machine network throughout the

UK.Since cash machines never close,the cash card

offers you the ability to withdraw funds any time of the

day or night.Debit cards can also be used to make

purchases from retailers.

Direct Debits Direct debits offer the ultimate

convenience for those regular payments with which you

have to grapple.Instead of dealing with late fees

because you forgot to pay your mobile phone bill

(again!), you can set up payments so the money I

automatically taken out of your account at the same

time each month.


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Check book/withdrawal slip

Every bank has its own printed cheque forms which are

supplied to customer at the time of opening account and

subsequently at the request as and when required by

customer.A cheque book contains serially numbered blank

forms. The cheque book generally contains from 10 to 100

blank forms.When a customer wants,to withdraw money or

make payments,he has to fill in the cheque and sign it.So

cheque is an unconditional order to specified banker to pay a

certain amount of money to directed person.A cheque book

also contains a requisition slip which is to be duly filled in

and prested by customer for obtaining another cheque bookfrom the bank.

In case of saving deposit account cheque book is

provided only to those who undertake to maintain minimum

balance in their accounts.If they do not want to maintain

minimum balance in the account, then they can withdrawmoney through withdrawal slips.


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Pass Book

This is a book issued by the bank to the customer in which

all transaction b/w them are recorded.In fact, it is a copy of

customers account in the books of a bank.The transactions

in the pass book are recorded in the bank. The purpose of

issuing a pass book to the customer is to acquaint him

periodically with state affairs of his account with the bank.

This book contains the details as to the amount withdrawn

with date of withdrawal,and the balance of account on a

particular date.Now-a-days some banks do not issue a pass

book to the depositors of current accounts but the bank

sends to them at the end of each month a bank return whichis a copy of the customers account with bank for the relate

month.

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Closing a BankAccount


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CLOSING A BANK A/C

Banker customer relation continues as long as both of them

sodesire.Willingness on the part of both parties is essential.This relationship can be terminated by the act of any of the

party.In both the cases the party wants to terminate the

relationship has to give formal notice of his intention of the

party is under any obligation to other except one that is on

the party of banker to maintain secrecy in regard to the

customer accounts.

Accounts of customer can be closed by any of the

following ways:

1. Closing of Account by customer

Whenever a customer desire to close operations of his

account, he can terminate the relationship of banker and

customer but only after satisfying the banker that the

closer is genuine.

The following are the reasons when account is closed

by the customer:

(a) The change in terms and conditions regarding,rate

of interest,to commission,incidental charges etc.

may not acceptable to customer.

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bank,in some bank it is three year),then it is treated as

dormant account.The banker can close this account but only

after giving notice to account holder.

3.Closing of account under compulsion of

law

Sometime banker has to close to account of customer

under legal compulsion due to following reasons:

(i) When customer is traced to be indulged in illegal

activities.

(ii) His working is not in the interest of nation.

(iii) The account may be closed due to death/insolvency

/instantaneity of customer.

There are some cases in which operation of accounts areclosed until the text next instruction received.This stopping is

temporary in nature.

These cases are:

Death of customer

Insolvency of customer

Voluntary liquidation of a limited co.

Attachment of garnishee order (69)


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Fifthly,one problem experienced by banks is that, many

a time,villagers divert the loans from productive to

unproductive uses.This needs to be stopped and it needs to

be ensured that the credit is used for the purposes for which

it is meant.Banks may think in terms of advancing credit to

agriculturists in the form of agricultural inputs.While giving

credit to farmers in the form of agricultural inputs,it should be

ensured that inputs are supplied in adequate

quantities and intime and complementary and supplementary facilities are also available

Finally, it needs to be remembered that stray attempts would

not solve the problem of agricultural credit.The credit system

as a wholegovernment, commercial and cooperative

must be so knit together that it does not suffer either from agap or an overlap.It is only then that the real fruits of credit

facilities will be enjoyed by the country at large in the form of


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Documents

Types of Bank Ac