Current Accounts

Objectives of the Create an awareness among the participants pertaining to

topic
1. General Features of Current Accounts
2. Variants of Current Account
3. Procedure to be followed

1.General features of Current Accounts

Contents 2.New Current Account Variants
3.Corp Global Current Account
4. Procedure to be followed
5. Miscellaneous aspects
6.Objective Questions
7.Key/ Answers

1. Introduction

The word 'current' gives us the idea of a flow of operations taking place in this type of accounts.
Current accounts are primarily intended for businessmen and traders who have to deposit and
withdraw money from time to time from their accounts. These accounts facilitate continuous
flow of transactions with no restrictions on the number of deposits or withdrawals. These
unrestricted operations involve heavy work for the bank and hence the bank does not pay any
interest on these accounts. The main advantage in current account is that third party cheques
also can be collected. Hence the need for utmost caution to be exercised by us to ascertain the
genuineness of the instruments being tendered for collection.

Who can open the current accounts ?

1. Individuals
( provided they are of sound mind, attained majority and should not be illiterates and
blind persons)
2. Joint account holders
3. Proprietorships
4. Hindu Undivided Families
5. Partnerships
6. Companies
7. Clubs, Societies, Associations, Committees, Schools etc
8. Trusts, Executors and Administrators
9. Government and semi government bodies, Local authorities etc.
10. LLP( Limited Liability Partnership)
11. One Person Company

2. NEW CURRENT ACCOUNT VARIANTS(HO Circular 149/2013 dated 2/3/2013)

Repackaged and Revitalized current account schemes are as below.

1. Current Account
2. Corp Club Account
3. Corp Privilege Account
4. Corp Global Current Account(Forex transactions)
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These accounts will be opened under the CBCA nomenclature which will enable easy migration
without closure of the accounts.

A. Basic Current Accounts

The entry level CBCA variant “Corp Business Current Account” is renamed as Current Account
which will be the basic Current account variant with QAB criteria of Rs. 2,500/‐ for rural and
semi‐Urban branches and Rs 5,000/‐ for Urban and Metro Branches. New accounts will be opened
with CBCA nomenclatutre. Existing CA accounts have been migrated to basic CBCA variant during
Finacle migration.

B. Corp Club Account

The second variant of Current account will be Corp Club a/c with QAB of Rs. 1 lakh as hitherto but
with value adds and freebees. Existing Corp Business Premium accounts have been migrated to
basic CBCA variant during Finacle migration.

C. Corp Privilege Account

The highest variant will be the Corp Privilege a/c where the minimum QAB criterion has been
reduced from Rs.5lakhs to Rs.2.50 Lakhs. Lot of value‐adds and freebees have been now added to
make the a/c really attractive.

PROMOTING NET BANKING:

To bring down the load on the branches by way of migrating customers to alternate channels,
incentives by way of 50% concession is offered for remittances made by DD and RTGS through
Internet banking.

NEW FACILITIES OFFERED

a. Online Bulk Upload (combination of Intra‐Bank and NEFT Credits)
This facility can be used by customers for making multiple payments simultaneously through NEFT
by uploading a file. The facility is enabled through Corporate Internet Banking of our Bank. The
facility can be targeted at organizations like the Co‐operative Banks that need to route the NEFT
transactions through a scheduled bank.

b. SMS Alerts
SMS Alerts (push messages) in respect of the transactions shall be sent to any one mobile number
registered with us linked to the Current Account. The facility shall be offered free to Corp ‐ Club
and Corp Privilege A/C holders.Annual charges of Rs. 100/‐ will be levied to Current Accounts, the
basic variant.

c. Payment Gateway
Our Bank is offering the facility of Payment Gateway for online payments using Debit/Credit
Cards. This facility will be useful for merchants using internet as a channel for marketing their
products. This facility shall be offered at a discount to Corp – Club and Privilege. While Current
Accounts holders will be provided the facility at card rate.

d. EDC Terminals
Our Bank has been offering swiping machines (EDC terminals) to our Current Account customers.
We need to popularize them further for CASA growth.

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e. Credit Sweep facility (pooling)
Credit Sweep facility is a facility to sweep credit balances in multiple accounts of the party to a
central account at a predetermined time. The credit balances from multiple accounts can be
swept leaving a minimum balance as per agreement arrived at. This facility is very useful to
companies that need to make collections on a daily basis from different locations. The company
needs to maintain one single account at a central location and multiple accounts at various
dealer/branch locations. This will be offered free of cost to all the variants.

f. Signature Debit Card

Free Signature Debit Card shall be issued on request to all Proprietors, Promoters & Directors of
companies maintaining Current Account – Club and Privilege. The card will be linked to their
personal savings accounts, even if it is a basic saving a/c.

g. Free account statements by e‐mail

Free account statements shall be sent by e‐mail. The frequency can be daily, weekly or monthly
as per the option of the customers

SERVICES USING OUR CAPS INFRASTRUCTURE

In addition to the facilities mentioned above, we are offering the following facilities to our
Current Account customers using our CAPS infrastructure.
a.Unified Fee Collection Service(UFCS):Our Bank has introduced UFCS to facilitate educational
institutions f6r collecting fee through multiple channels including payment gateway whereby
students/parents can make fee payment through cash/cheque/NEFT/RTGS/e mandate.It is
designed to provide a hassle free mechanism to collect fee payments,pooling of funds,customized
MIS to institutions without any manual intervention.We can use this tool to make in roads into
schools/college campuses to canvass their accounts.As the fee so collected is pooled into
institution’s
CA/SB account,the product helps in increasing our CASA base.
b. Mandate Debit – When both parties are our customers.
This is a facility for Companies which maintain Current Account with us like NBFCs, Mutual funds
etc for collecting monthly loan installments, SIP payments etc from our customers. The customer
should give a mandate for debit specifying the amount and the period. The Bank will register the
mandate centrally and periodical auto debits will be affected. All credits are pooled at one place
and a single credit is given to the client. In case of returns, the customer’s account will be
debited with the charges. A MIS will be provided specifying details of mandates updated or
otherwise, with reasons.The client is saved the hassles of handling (postdated) cheques.
Moreover, debits can be made on a particular day in all the branches including non‐working days.

c. Bulk Cheque writing Facility

This facility enables customers to issue large number of cheques towards payments. The Bank
would print the cheques on behalf of the clients saving the hassles of writing individual cheques
thereby avoiding frauds, mistakes and undue delay in writing the cheques. The customer should
give the data in the appropriate format by soft copy to the branch which will be uploaded.
Cheque printing can be customized if required to suit customer needs. MIS will be provided to the
customer inclusive of the cheque number. The facility is available only in Mumbai and Delhi.

3. CORP GLOBAL CURRENT ACCOUNT- NEW CURRENT ACCOUNT PRODUCT FOR FOREX
TRANSACTIONS

1. Introduction:
In order to expand our clientele base and to garner increased market share in the foreign
exchange business, it is proposed to introduce a new current account product aimed at Forex
clients, who do not enjoy any credit limits. The new product offers rebate in service charges
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relating to Forex transactions. Through this product, it is expected to improve the share in foreign
exchange business, clientele base and share in CASA.

2. Target Customer:
The target customers will be exporters and importers who are not enjoying any credit limits and
also customers having Forex remittance (Outward) business. Besides new customers, existing
customers in these line of business but not enjoying any credit limits can also be brought under
this new account.

3. Name of the New Account:

This new account will be known as “CORP GLOBAL CURRENT ACCOUNT”. This account can be
used by the customer for their normal business transactions like any other current account. The
existing CBCA can be migrated to CBCA (Global) at the request of the customer without
changing the account number. The existing Current Account Opening form can be used for opening
this account.

4. Eligible Branches to open Corp Global current account:

All Branches Designated for foreign exchange Business (DBs) and other branches (Linked Branches)
can open CBCA (Global) and also convert the existing eligible CBCA in to CBCA (Global). However
the linked branches have to route their foreign exchange transactions through the DB linked to
them as usual.

5. Effective Date:
The new account can be opened with immediate effect.

6. Features:
The account will have two variants depending upon the Quarterly Average Balance (QAB) of
Rs.1.00 lakh (Rupees one lakh) and Rs. 2.50 lakh (Rupees two and half lakh).

Other important features are furnished in the table below along with comparison with other types
of current accounts.

Comparison of Current Account Variants

TERMS & CURREN CORP CORP CORP CORP
CONDITION T CLUB PRIVILE GLOBAL GLOBAL
1 Quarte
S* Rs.5000(Rs.2500 Rs.1 lakh Rs.2.50
G Rs.
A 1 lakh RsB2.50 lakh
rly in rural) lakhs
Averag
2 Signature
e Normal Free Free Free Free
Debit Eligibility
BalancCard
to
e
Promoters/
3 SMS Banking Rs.100+GST Free Free Free Free
Directors SB
per annum
4 A/cs
RTGS FacilityNormal Charges Free Free Free Free
5 Demand Draft Rs.2.50/1000 Free Rs.10 Free Free Rs. Free
(Min Rs.30 and lakhs per 10 lakhs
Max Rs.10000) day per day
(Max 5 (Max 5
DDs)
DDs)

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 6 Free 100 leaves 200 Free 200 Free
Personalize per annum leaves leaves
d Cheque per per
7 Duplicat
Leaves Rs.50+GST Free
annum Free Free
annum Free
e
Account
11 Stop
Stateme Rs.50 +GST Free Free Free Free
Payment
nt per cheque
Instruction or
Charges Rs 250/
12 Ledger Folio Rs.100+GST/Fol Free Free Free Free
per range
Charges io
13 Charges Rs.250+GST Rs.1000+GS Rs.2000+GS 1000+GST 2000+GST
for non T T
maintenance
of
14 Outstati
QAB Normal Charges Normal Free Normal Free
on Charges Charges
Cheque
collecti
Chargesonare subject to change from time to time.
charges
4. Procedure to be followed:

Account Opening:

A common application form with ID -201 has been designed to cover SB as well as Current
Account. This form contains declarations to be given by the account holder with regard to -
documents submitted, other accounts and credit facilities with any other bank and about the
minor. There is provision for introduction and affixing the photograph. Application for other
facilities like debit card, Corp Message, Corp Net, etc is also included in the form. Customer
relationship information, form NO.60 (declaration to be filed by a person who does not have
either a PAN or GIR and who makes payment in cash in respect of transaction specified in clause a
to h of rule 114 B), Nomination form DA -1 are also included in the application.

Documents required for a/c opening:

1.0 Accounts of Certificate of incorporation and Memorandum & Articles of Association,

companies (ii)Resolution of the Board of Directors to open an account and identification
of those who have authority to operate the account, (iii) Power of Attorney
granted to its managers, officers or employees to transact business on its
behalf, (iv)Copy of PAN allotment letter,(v) Copy of the telephone bill.

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 2.0 Accounts of Registration certificate, if registered, (ii) partnership deed, (iii)
partnership firms Power of Attorney granted to a partner or an employee of the firm to
transact business on its behalf, (iv) Any officially valid document identifying
. the partners and the persons holding the Power of Attorney and their
addresses (v) Telephone bill in the name of firm/partners.

3.0 Accounts of (i)Certificate of registration, if registered, (ii)Power of Attorney granted to

trusts & transact business on its behalf, (iii) Any officially valid document to
foundations identify the trustees, settlers, beneficiaries and those holding Power of
Attorney, founders / managers / directors and their addresses, (iv)Resolution
of the managing body of the foundation/association, (v) Telephone Bill.

4.0 Accounts of Registration certificate (in the case of a registered concern) (ii)
Proprietorship Certificate/License issued by the Municipal authorities under Shop &
concerns 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) License issued by the Registering
authority like Certificate of Practice issued by ICAI,ICWAI,ICSI,IMC, Food
& Drug Control Authorities, registration/licensing documents issued in the
Any two of the name of the proprietary concern by the Central or State Government
documents would Authority/Department, Importer Exporter Code issued to the proprietary
suffice. These concern from the Office of DGFT, etc. vii)The complete income
documents should tax return(not the just acknowledgement) in the name
be in the name of of the sole proprietor where the firm's income is reflected, duly
the proprietary authenticated/acknowledged by the Income Tax Authorities, viii) Utility bills
concern. such as electricity, water, and land line telephone bills in the name of the
proprietary concern.

Introduction is waived: The system of getting introduction by an existing customer for

opening new accounts is withdrawn. However, branches have to:

-verify the PAN No., wherever PAN No. is allotted to the customer/required to be
submitted, through the NSDL link provided in the Intranet of the Bank.

-confirm the address through sending ‘Letter of Thanks’ by Registered Post A.D.

-determine beneficial owner/controlling ownership as per guidelines vide HO-Circular

no 197/2013

Documentation:

Complete details regarding address with telephone no if any, occupation, etc., should be
correctly noted in the opening from. We should keep in mind that this is a good beginning of a
long term relationship being built. Hence our effort should be to create a database with as many
details as possible about the customer.

Operational instructions: Instructions given by the account holders as to the operating of the
account should be noted on the master sheet as well as on the specimen signature card and
verified by the concerned officer under his signature.

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As soon as the verification I entry work is over, account opening form should be filed serially and
kept under lock and key after authentication by the concerned officer. Similarly, the specimen
signature card also should be preserved.

Watch on the Conduct of the Account:

The operations in the new accounts are to be watched for the first 6 months. Any credit for large
amounts received in the account should put the passing officer on extra care and enquiries should
be made with the account holder as to the nature of the transaction and source of the payment
received to get himself satisfied as to the bonafides of the account holder. There should be
counter verification of passing of cheques for amounts of Rs.25,000/- and above. The authority to
pass the cheques for amounts of Rs.25,000/- and above shall rest with officials higher in rank than
the official handling the department of Current/OD/CC/SB. The officials authorized to pass the a
cheque may be a sub manager, manager. senior manager or branch in charge.

Issue of Cheque Book:

At the time of opening the account, the first cheque book is issued only to the depositor.
Subsequent cheque books should be issued only against the original requisition slips taken out
from the existing cheque book. Cheque books should be issued only to the account holders. In
case the account holders authorize some one else to collect the same, the same should be got
acknowledged soon after the issuance of cheque book.

Dishonor of Cheques - Procedure

In terms of Goiporia committee recommendations, dishonored instruments are returned /

despatched to the customer without any delay, in any case within 24 hours. The procedure for
return / despatch of dishonored cheques is as below.

 The paying bank should return dishonored cheques presented through clearing houses
strictly as per the return discipline prescribed for respective clearing house in terms of
uniform regulations and rules for bankers clearing houses. The collecting bank in return,
should despatch the cheques immediately to the payees.
 Cheques dishonored for want of funds in respect of all accounts should be returned along
with a memo indicating therein the reason for dishonor as "insufficient funds"
 Data in respect of each dishonored cheque for amount of one crore and above should be
made part of bank's MIS on constituents and concerned branches should report such data to
their controlling offices.
 Data in respect of cheques drawn in favor of stock exchanges and dishonored should be
consolidated separately by banks irrespective of the value of such cheques as a part of
their MIS relating to broker entities. and be reported to the controlling offices.

 With a view to enforce financial discipline among the customers, banks should introduce a
condition for operation of accounts with cheque facility that in the event of dishonor of a
cheque valuing rupees one crore and above drawn on a particular account of the drawer
on four occasions during the financial year for want of sufficient funds in the accounts, no
fresh cheque book would be issued. Also, the bank may consider closing current account at
its discretion. In respect of borrowal accounts, the need for continuance or otherwise of
these credit facilities and the cheque facility relating to these accounts should be
reviewed by appropriate authority higher than the sanctioning authority

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  If a cheque is dishonored for a third time on a particular account of the drawer during the
financial year, banks should issue a cautionary advice to the concerned constituent
drawing his attention to aforesaid condition and consequential stoppage of cheque facility
in the event of cheque being dishonored on fourth occasion on the same account during
the financial year. Similar cautionary advice may be issued if a bank intends to close the
account.

5. Miscellaneous:

Stop payment orders, loss of cheque leaves, change in the operational instructions etc, should
be updated under the authentication of concerned official on a day to day basis. Cheque
book may be issued subject to the minimum balance being maintained and the satisfactory
maintenance of the account. Pass book furnishing the particulars of debits and credits to be
got updated by the client whenever there is operation.

Conclusion: Familiarity with the features of different Current Account variants is the first step
towards canvassing more current accounts and thereby improving our CASA.

Know Your Customer (KYC) guidelines - accounts of Proprietary concerns.

In some types of activities there is genuine difficulty in procuring two documents as activity proof.
Hence if the branches are satisfied that it is not possible for the proprietary firm to furnish two
such documents, they would have the discretion to accept only one of those documents as activity
proof.

In such cases, the branches, however, would have to undertake contact point verification, collect
such information as would be required to establish the existence of such firm, confirm, clarify and
satisfy themselves that the business activity has been verified from the address of the proprietary
concern.

Further, RBI has clarified that the list of registering authorities indicated in the list mentioned
below is only illustrative and therefore includes license/certificate of practice issued in the name
of the proprietary concern by any professional body incorporated under a statute, as one of the
documents to prove the activity of the proprietary concern.

INDICATIVE LIST OF DOCUMENTS:

1. Registration certificate (in the case of a registered concern),
2. Certificate/licence issued by the Municipal authorities under Shop & Establishment Act
3. Sales and income tax returns
4. CST/VAT certificate
5. Certificate/registration document issued by Sales Tax/Service Tax/ Professional Tax
authorities
6. Licence issued by the Registering authority like Certificate of Practice issued by 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.
7. Registration/licensing document issued in the name of the proprietary concern by the
Central Government or State Government Authority/ Department
8. IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT
9. The 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
10. Utility bills such as electricity, water, and landline telephone bills in the name of the
proprietary concern/firm.
HO Circular No: 208/2015 Dated: 19/03/2015.
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OPENING OF CURRENT ACCOUNT IN THE NAME OF ENTITIES ENJOYING
CREDIT FACILITIES WITH THE BANKING SYSTEM:

1. Branches shall desist from opening current accounts of entities enjoying credit facilities
[Fund/Non Fund] from the Banking system.
2. In case the entity is new, a reference shall be made to CIBIL to ensure that the entity does
not have any borrowing arrangement and it is not in the list of defaulters.
3. Obtain No-Objection Certificate from the existing banker before opening the current
account.
4. Wherever our borrowers are routing their turnover through accounts maintained at other
Banks, urgent steps shall be taken to get such accounts closed.
5. In case of non-cooperation by any Bank, the matter shall be taken up with the local office
of RBI.

Escrow Account under RERA:

H.O.Circular No.261/2017 dated 08.05.2017 on RERA (Real Estate (Regulation & Development)
Act, 2016).
As per the provisions of the said Act, it is mandatory on the Promoter to deposit funds amounting
to 70% to cover the construction cost of the project in separate bank account. The amount shall
be withdrawn from the separate account to cover the cost of the project in proportion to the
percentage of completion of the project after it is certified by an engineer, architect and
chartered accountant in practice that the withdrawal is in proportion to the percentage of
completion of the project.

Therefore, while opening separate bank account in the name of Promoter/Builder as required
under the provisions of RERA, branches may obtain an Escrow Agreement as per the format (HO
Circular No: 382/2017 Dated: 06/07/2017). The operation in such account should be governed by
the terms and conditions of escrow agreement. Since the account is opened for a specific
purpose, the same should be used only for the said purpose.

All other procedure/guidelines while opening the account in the name of the Builder be complied
with.

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