This document describes various types of bank accounts including savings accounts, current accounts, fixed accounts, NRI accounts, joint accounts, minor accounts, partnership accounts, and company accounts. Savings accounts allow withdrawals with some restrictions and pay low interest. Current accounts allow unlimited withdrawals and pay no interest. Fixed accounts have deposits for a set time period, no withdrawals, and pay high interest. NRI accounts are for non-resident Indians and include NRE, NRO, and FCNR accounts.

2. Common types of accounts
Savings account
They are payable on demand but with
some restrictions. Cheque facility is
allowed on this type of deposits. Banks
pay low rate of interest. It is the most
common type of account.
Current account
The depositor can withdraw money
whenever he wants, there are no
restrictions. They are payable on demand
through cheques. No interest is paid on
this type of deposits.

3. Fixed account
Money is deposited for a specific period of time say 3 or 5 years.
They are not payable on demand, no cheque facility is provided on
these deposits. Banks pay high rate of interest. Loan facility is
provided on these deposits

4. NRI accounts
In India banking terminology, the term NRI
Account refers to funds deposited by a Non-
Resident Indian or NRI with a financial
institution authorized by the Reserve Bank
of India to provide such services. A Non-
Resident Indian is an Indian citizen who
primarily resides outside of India.

5. NRI banks accounts are available in different types. Here,
we are mentioning the accounts which are widely used in
India.
Three types of NRI Accounts which are widely used in India:
NRE Savings/Fixed Deposit Account
NRO Savings Fixed Deposit Account
FCNR Fixed Deposit Account
Types of NRI Bank accounts

6. The Non Resident External (NRE) Savings
Account
The Non Resident External (NRE) Savings Account is open
for Indians residing abroad. This Account will help you to
transfer foreign earnings easily to India. NRE account can be
opened in any banks as Savings and Fixed deposit accounts.
There is no tax & no wealth tax on interest earned from all
these accounts. The currency maintained in this account is
Indian Rupee. The funds from overseas can be easily
transferred to India. Nomination is allowed in NRE
Accounts.

7. NRO Savings Fixed Deposit Account
NRO account can be opened as the Savings or Fixed Deposit
account. Currency maintained in this account is Indian Rupee.
Joint Account can be created with any Indian Resident.
Interest earned in this account is 30% taxable and surcharge
and education cess will be included. It is applicable for both
savings and fixed deposit accounts. The account can be utilized
to pay any bill and expenses in India. Enjoy the convenience of
banking at any of our branches in India. Nomination is
allowed in NRO Accounts. Can deposit Indian Currency in to
this account.

8. FCNR Fixed Deposit Account
Earn Indian Interest Rates on your Foreign Currencydeposits
with our Foreign Currency Non-Resident Fixed Deposit. The
entire deposit (principal and interest) is exempt from tax. The
deposit can be jointly opened with any other NRI. You can get
an overdraft on your Savings / Current account against your
FCNR Fixed Deposit. Nomination Facility is available. Joint
accounts with Indian Residents not allowed.

9. Joint account is a bank
account shared by two or more
individuals. Any individual
who is a member of the joint
account can withdraw from the
account and deposit to it.
Usually, joint accounts are
shared between close relatives
or business partners.
Types of Customers
(joint and minor accounts)

10. Two Types of Joint
Accounts
(1) Joint-tenancy account
(owned usually by a married couple)
In which either owner may individually exercise full
rights to make deposits or withdrawals on his or
her signatures. In case of either owner's death,
the survivor automatically takes the sole control of
account assets without probate.

11. In which signatures of all owners are required to
exercise certain rights such as making withdrawals. In
case of one or more owners' death the other owner(s)
may take control of account assets only in accordance
with the terms of agreement entered between them
before such eventuality. A company account operated by
two or more signatories as a means of accounting
control or security is not a joint account in
the legal sense.
(2) Tenants-in-common account
(usually owned by two or more business
partners or directors)

12. Minor Account
A type of savings account that is setup by an adult to
be used by a minor. This type of banking account does
not provide all of the privileges that a normal account
would, but does allow the minor to make withdrawals
and deposits. Some banks require that the minor’s
account be linked to a primary account, so that the
adult can be held accountable for any
improper uses of the account. Normal maintenance
fees are usually waived until the minor reaches the
age of 18.

13. Section 3 of the Indian Majority Act, 1875 A
person under the age of18 years is called a Minor.
If a guardian is appointed by the court the age of
majority is 21 years. Here the name of minor is
wards.
Natural Guardianship of minor-Savings bank
account can be opened by minor, represented by his
natural guardian, Here ,natural guardian is father

14. A partnership is not regarded as an entity separate from the
partners. The Indian Partnership Act, 1932, defines
partnership as the “relation between persons who have agreed
to share the profits of the business, carried on by all or any of
them acting for all.” A partnership firm is thus established by
an agreement amongst the partners. This agreement may be
oral or written. The object of constituting a partnership firm
must be –
To carry on a business which may be conducted by all the
partners or by any of them on behalf of the rest, and
To share the profit of such business amongst themselves.

15. A banker should take the following precautions while
opening an account in the name of a partnership firm:
1. Number of partners
The banker should very carefully examine the partnership
deed, which is the charter of the firm, to acquaint himself
with the constitution and business of the firm.
2. Title of the firm’s account
A firm’s account should always be opened in the name of
the firm and not in the name of the individual partners.
3. Opening of an account
An account in the name of the firm may be opened by a
banker on receipt of an application from one or more of the
partners. Banks, however, insist that all the partners should
join to open the firm’s account.

16. 4. The partnership letter or mandate
The banker should take a letter signed by all the partners
stating;
•the names and address of the partners;
•the nature of the business undertaken by the firm and;
•the names of the partners who will operate the account
on behalf of the firm and will have the authority to draw
and accept bills and mortgage the property of the firm.
5. Revocation of authority to operate the account
The authority given in favour of a particular
partner/partners to operate the firm’s account may be
withdrawn by any of them by giving a notice to the
banker.

17. 6. Cannot delegate his authority
A partner authorised to operate the firm’s
account cannot delegate his authority to
another person without the consent in writing
of all other partners.
7. Enquiry
If a cheque payable to the firm is endorsed by
a partner in his own favour and is deposited by
him to be credited to his personal account, the
banker should do so after making an enquiry
about it from other partners and after being
satisfied about it.

18. Company Accounts
Companies usually go for current account as they need to
withdraw cash at any time. They are not investing their money
with the bank so they do not care about no interest being given
by the bank for their deposits.

19. Setting up a Company Bank Account
A Limited Company is a separate legal entity to
that of its directors and shareholders and it will
need its own bank account. Setting up a bank
account is a relatively straightforward affair,
having said that there are a number of choices
that may affect your decision as to who you sign
up with and there is certainly no shortage of deals
out there to confuse you further.

20. All banks must comply with stringent Money
Laundering Regulations and therefore will need
to carryout a series of checks before opening the
new account. You should keep the documents you
have received when your company was registered
safe as these will need to be produced before the
account is opened. Most banks like to see an
original copy of your certificate of incorporation
(printed on the correct paper), a copy of your
memorandum and articles and any share
certificates that have been issued. You may also
be required to show your passport to confirm
your identity

23. Non - trading association
account
Non trading associations usually open a savings
account with a bank. Savings Bank account is a
form of demand deposit account, opened mainly for
the purpose of saving and not for any business
purpose, subject to restrictions on the number of
withdrawals during any specified period. Number of
withdrawals in a savings bank account permitted is
fifty per half year in a financial year. For accounts
opened in the middle of the half year permissible
withdrawals will be calculated prorate. If the
numbers of withdrawals exceed the permitted limit,
a service charges advised from time to time will be
levied.

24. Opening of accounts
Saving bank account may be opened in the names of
individuals–single accounts, or joint accounts of two or more
individuals. Any trading or business concern, whether such
concern is proprietorship, partnership, company or association
shall not open Savings Bank account. Application to open a
Savings Bank Account should be made on the Bank's
prescribed forms duly completed with his name, address and
occupation. Each applicant will be required to sign a
declaration to the effect that he has read and accepted the
Savings Bank Rules.
Types Of Accounts
The applicants can opt for opening of an account either with
chequebook facility or without chequebook.

25. Deposits
There is no restriction on number of deposits that can be made
into the account.
Withdrawals
The accountholder can withdraw money personally from her/
his ordinary Savings Bank Account by using Bank’s standard
withdrawal form.
Overdrafts
Overdrafts in Savings Bank accounts may be permitted under
exceptional circumstances with prior arrangements only.
Standing Instructions
The account holder can request the Bank for effecting
periodical payment of insurance premium; membership fees
etc. by debit to her/ his account on payment of service charges.

26. Payment of Interest
Interest at the prescribed rate will be calculated for each
calendar month on the lowest balance at the credit of an
account between the close of the tenth and the last
working day of the month.
Transfer & Closure Of Account
Accounts may be transferred between branches of the
Bank at the request of the account holder(s).