Skillmarks management pvt. Ltd.

BANKING MODULE
CHAPTER: 2

PRODUCTS OF BANK: TYPES OF ACCOUNTS

TYPES OF ACCOUNTS:

1. SAVINGS ACCOUNTS: A main product of Bank, which help us to do some savings as a safe place from our future
with extra benefits (% of Interest depends on savings accounts balance). interest on Saving Bank Accounts was
regulated by RBI and it was fixed at 4.00% on daily balance basis. However, wef 25th October, 2011, RBI has
deregulated Saving Fund account interest rates and now banks are free to decide the same within certain
conditions imposed by RBI. In Saving Account, there are some limitation for daily & yearly transaction. There are
different types of Savings Account under Different Pvt. Or Nationalized Bank depends on individual benefits &
requirement. But basically Savings Accounts are 2 types,

(A) Savings Account for Single Account Holder & (B) Savings Account for Joint Account Holder.

How to Open a Saving Account:

1. KYC (Know Your Customer)

Photo Identity Proof:

• PAN card
• Aadhaar card
• Voter ID
• Passport
• Driving license
• Employee ID
• Any photo ID card issued by the Central/State government

Address Proof:

• Aadhaar card
• Voter ID
• Utility bill (electricity, gas, water, telephone)
• Passport
• Driving license
• Bank account statement or passbook of the bank
• Ration card
• A letter stamped/signed/recognized from public authority to verify the address details of the applicant

2. Recent Colour Passport Size Photo As per requirement.

3. Opening Balance as per individual Bank & locality.

NOTE: In case of Joint Account KYC Require of both a/c holders.

2. CURRENT ACCOUNTS: Second important product is Current Account, which use for Business Purpose. Not only
for business purpose but it also use for NGO, Charity, Institute, & Clubs for individual requirement. In Current
Account, there are no limitation for daily & yearly transaction. Basically there are no types of Current Account, but
in some Banks we can see some different types of Current Accounts depends on Facilities & Benefits. Current
Accounts are basically meant for businessmen and are never used for the purpose of investment or savings. These
deposits are the most liquid deposits and there are no limits for number of transactions or the amount of
transactions in a day. Most of the current account is opened in the names of firm / company accounts. Cheque
book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or
endorsed in their favour by third parties. No interest is paid by banks on these accounts. On the other hand, banks
charges certain service charges, on such accounts.

How to Open a Current Account:

1. KYC (Know Your Owner)

Photo ID proof: Voter Card ___ Aadhar Card___ Driving License___ Pan Card & others documents which identify
you as per requirements .

Address proof: Aadhar Card ___ Electricity Bill ___ Ration Card & others documents which identify your
residence as per requirements .

** In case of partnership deed KYC require of all partners.

2. Recent Colour Passport Size Photo As per requirement.

3. Partnership Deed
4. Incorporation Certificate
5. Trade license
6. Income Tax Return File
7. We all know that there are no opening balance for Current A/c, but now some Bank can require for
Account opening Cheque from existing Savings/Individual Current Account.
8. Basically no balance require for opening purpose, but some time it require for different purpose as per
Banks norms.

Current Account for Private/Public Limited Company

List of self-attested documents and details to be submitted for One Person Company (OPC)/ Private/ Public
Limited Companies:

• Certificate of incorporation.
• Updated list of directors.
• Communication address proof of the entity, if it is different with the address mentioned on Certificate of
registration Current landline/ mobile number and e-mail ID of the entity.
• Permanent Account Number (PAN) of the entity.
• Latest passport-size colour photograph of each of the authorized signatories.
• A copy of one valid photo identification and address proof of each of the authorized signatories Shareholding
pattern/ list of beneficial owners holding more than 25% in the company either directly or indirectly (on
letterhead).
• Permanent Account Number (PAN)/ identity proof of such beneficial owners as identified above.
• Address proof of such beneficial owners as identified above.
 • Identity and address proof of the Senior Managing Official in case the ultimate natural person is not
identified as the beneficial owner.
• Account opening Cheque from existing Current Account

Trust, Society, Association & Club (TASC)

• The list of directors /Members of the Managing committee / the Managing Council.
• PAN card or proof of exemption from income tax (if applicable).
• Proof of communication address of the entity.
• Latest colour passport size photograph of each of the existing authorized signatories.
• A copy of one valid photo identification and address proof document of each of the existing authorized
signatories
• List of beneficial owners holding more than 15% in the Trust. (Directly / Indirectly)(on letterhead)
• Permanent Account Number (PAN) / Identity proof of such beneficial owners as identified above.
• Address proof of beneficial owners as identified above.

3. SALARY ACCOUNTS: Salary account also a important product of Banks. You will get your monthly income
through this type of account from your workplace. This time you will not get any kind of interest on your credit
balance. If consistently 3 month your salary will not credit in your account, then it will be automatically convert
into a saving account.

How to Open a Salary Account:

1. KYC (Know Your Customer)

Photo ID proof: Voter Card ___ Aadhar Card ___ Driving License___ Pan Card & others documents which
identify you as per requirements .

Address proof: Aadhar Card ___ Electricity Bill ___ Ration Card & others documents which identify your
residence as per requirements .

2. Recent Colour Passport Size Photo As per requirement.

3. Company’s authentication. (It will be opend by your company/work place)

4. WOMEN ACCOUNTS: There are another type of account named Women account, which give women’s different
types of facilities as per their requirement (within individual bank’s norms & conditions).

How to Open a Women Account:

1. KYC (Know Your Customer)

Photo ID proof: Voter Card ___ Aadhar Card ___ Driving License___ Pan Card & others documents which
identify you as per requirements .

Address proof: Aadhar Card ___ Electricity Bill ___ Ration Card & others documents which identify your
residence as per requirements .

2. Recent Colour Passport Size Photo As per requirement.

3. Age limit: woman of 18 years and above should be the primary applicant.
4. Opening Balance as per individual Bank’s requirement.
 5. 5. STUDENT ACCOUNTS: Another type of account is available in Bank, which give minors(Below 18 years
old), different types of facilities, called Student Account. There are some transaction limit yearly basis.

How to Open a Student Account:

1. KYC (Know Your Customer)

Photo ID proof: School Identity Card ____ Aadhar Card & others documents which identify you as per
requirements .

Address proof: Aadhar Card ____ Ration Card & others documents which identify your residence as per
requirements .

Age proof: Birth Certificate

2. Recent Colour Passport Size Photo As per requirement.

3. Age limit: Below 18 (After 18 years it will be automatically convert into a Savings Account)
4. Opening Balance always ‘ 0 ‘ .
5. Parents all details as per requirement.
6. Declaration from School Authority.

6. NRI (Non-Resident Indian) ACCOUNTS: In some Banks you can see this types of account, which give some
facilities to NRIs. Basis on opening balance there are few types of NRI Accounts.

(a) NRI Silver: approx. 50,000/- (It’s variable)

(b) NRI Gold: approx. 1,00,000/- (It’s variable)
(c) NRI Diamond: approx. 5,00,000/- (It’s variable)

There are some different facilities for different types of NRI Accounts, given by individual Banks.

How to Open a NRI Account: Passport & Visa is mandatory. Rest of the process will followed by individual Bank’s
Norms & Condition. Along with account facilities Bank will provide additional benefits like FD, Loans etc.

7. PENSION ACCOUNTS: Pension accounts are basically available in Nationalized Bank. It’s a facility only for retired
person.

Eligibility Criteria & Opening process:

1. For Retired Person

2. Age: 60 above
3. KYC (Know Your Customer)

Photo ID proof: Voter Card ___ Aadhar Card___ Driving License___ Pan Card & others documents which identify
you as per requirements .

Address proof: Aadhar Card ___ Electricity Bill ___ Ration Card & others documents which identify your
residence as per requirements .

4. Supporting documents as per Bank’s requirement.

5. Pension account always will be a joint account.
8. DEMAT ACCOUNTS: Demat Account is an account that is used to hold shares and securities in electronic format.
The full form of Demat account is a Dematerialised Account. During online trading, shares are bought and held in a
Demat account, thus facilitating easy trade for the users.

How to Open a Salary Account:

1. KYC (Know Your Customer)

Photo ID proof: Voter Card ___ Aadhar Card___ Driving License___ Pan Card & others documents which identify
you as per requirements .

Address proof: Aadhar Card ___ Electricity Bill ___ Ration Card ___ Passport & others documents which identify
your residence as per requirements .

2. Recent Colour Passport Size Photo As per requirement.

3. Proof Of Income
4. Income Tax Return File
5. PAN Card
6. Proof Of Bank Account (Canceled Cheque)
7. Unique Identification Number (UID) (Aadhaar/ Passport/ Voter ID card/ driving license)
8. Identity card/document with applicant’s photo, issued by any of the following: Central/State
Government and its Departments, Statutory/Regulatory Authorities.
9. Bank Account Statement/Passbook – Not more than 3 months old.
10. A Net Worth Certificate certified by a Chartered Accountant
11. Proof of Salary in the form of a recent Salary Slip