While opening opening Current Accounts of all categories of depositors including proprietor, partners, trustees, settlers, beneficiaries and those holding power of attorney, founders, managers, directors etc.the customers needs to submit ‘know your customer’ related official valid documents of the entities and natural persons behind the entities. As per RBI guidelines, in addition to seeking NOC from the existing bankers of the prospective current account customer, banks should seek information from CRILC and verify the data received from the CRILC, whether the prospective customer is enjoying credit facilities from another bank. Also, banks have to seek ‘No Objection certificate’ from the drawee bank where the initial deposit to current account is made by way of a cheque.In addition to KYC related documents, other common procedure for opening new current accounts are published in this website, let us now examine, what are the other requirements for opening captioned accounts.
Opening of Individual/Proprietorship Account:
The sole proprietor is an individual owner of a business or contract. He/ She are liable to pay liability of the proprietorship as personal liability and also pay income tax on personal income earned through business. As such many businessmen do business or trade on their personal name as separate business name is not necessary. Procedures for opening Current account for both individuals and sole proprietary firms are same. KYC formalities like identity proof and address proof with introductions are common requirement for opening account. Further while opening current account banks generally insist for proof of business activities such as VAT/GST registration, Municipal shop and establishment licence, Sales tax registration etc.
Opening Hindu Undivided Family (H.U.F) Account:
H.U.F is a group of persons of a same family carrying on the family business. The father or senior most member of the family who manages the family business is called Karta and other members of the same family are called co-parceners. (a) The H.U.F account should be opened in the name of ‘Karta’ (senior male member of the family) or in the name of the family business. The bank has to obtain two copies of the photographs of the ‘Karta’, one to be affixed on the Account Opening Form and the other on the Specimen Signature Card. (b) Bank would obtain the HUF declaration duly signed by the ‘Karta’ and all the major coparceners of HUF.
Opening of account in the name of Liquidator:
A Liquidator is a person appointed by the shareholders in case of voluntary winding of the company or on a Court order to manage the winding up of the company by selling its assets. A Liquidator should produce Court order to the bank for opening an account evidencing his/her appointment as liquidator so as to ensure that he/she has the powers to carry on the business in the course of Liquidation. In the case of voluntary winding up, certified copy of the resolution shall be produced.
Opening of Trust Account:
A trustee is a person or an entity created and entrusted with property to deal with for the benefit of certain person or persons called beneficiaries. A trust is created by means of written document known as trust deed. The trust deed contains important details. Object of the trust, Names of trustees and power vested with them, The Beneficiaries and terms and conditions to administer the trust property. The person who transfers his property to the trust is called “settler” or “author of Trust”. A trust can be formed for charitable or religious or educational or scientific purposes. The Trust formed for the promotion of public welfare is called Public Trust. The Trust which is created for charitable purpose is called a charitable trust. A trust created for the benefit of specified /definite ascertainable individuals is called private trust. The following documents generally required for opening a Trust account in the banks: Certified copy of the Trust Deed. If there is no Trust Deed, a certified copy of the order from a competent Court in this regard to be submitted.
In case a trust is a charitable trust, a certified copy of the certificate issued by the Charity Commissioner.
(a) Certified copy of the resolution regarding opening and operation of the account.
(b) Details of all the present trustees with bio data of each trustee.
Accounts of Government/Semi Government departments:
Government departments or semi Government departments also need a bank account to carry out the financial transactions of the department. The following documents are generally needed for opening accounts of Government/Semi Government departments.
(i) Copy of the Letter of Authority by the Head of the Department, permitting the Executive/official of the institution/department to open an account.
(ii) A copy of the Government Notification / Order authorising the concerned official to open and operate the account.
(iii) A certified copy of the Rules and Regulations, if any, framed by the Department / Local body, regarding the powers of such Executive Officer who are opening and operating Bank accounts.