Savings Bank Account for Individuals

The advantages of a Savings Bank account are:

a) It helps inculcating the habit of Savings and thrift among people.

b) It facilitates making payments by cheques

c) Immediate Credit of outstation cheques upto a certain amount is made.

d) It fetches reasonable interest

e) Pass Book serves as a record of earnings and expenditure

f) Customers can avail the facility of standing instructions

g) Nomination system ensures social security.

Introduction of Savings Bank Accounts

All savings Bank accounts are to be properly introduced by some person known to the bank. The branches are requested to make their own enquiries about the existence of the account holder, his integrity and respectability before they open an account in his name and consider extending any facility of collection and of discount of cheques. Introduction does not simply mean obtaining signature of a third person known to it as introducer on the Account Opening Form. Reserve Bank of India has also directed that Bank should invariably insist upon prospective depositors to furnish introduction for opening Savings Bank Accounts.

A Savings Bank Account be opened

1. a) By individual in his/her own name

b) More than one individual jointly

c) A guardian on behalf of Minor

d) By a minor who has attained the age of 10 years and is literate.

2. A Savings Bank Account can be opened in the name of illiterate person to be operated by his/her thumb impression.

3. A Blind Person

4. Clubs, associations/registered or unregistered/charitable and religious institutions, trust, local bodies, primary co-operative societies and such other bodies of identical nature.

5. A HUF provided it is not a business concern.

It may be noted that a Savings Bank Account cannot be opened in the name of a trading or business concern, whether such concern is a proprietory or a partnership firm, a company or an association or a HUF.

No Savings account to be opened in case of

a) Government department and Bodies, that depends upon budgetary allocation for performance of their function.

b) Municipal corporation or Municipal committees

c) Panchayat Samities

d) State Housing Boards

e) Water and Sewarage/Drainage Board

f) State Trust Books Publishing Corporation

g) Societies

h) Metropolitan Development Authority

i) State/District Level Housing Co-operative Societies

j) Any trading or business concern

k) Any professional concern (e.g. firms of Chartered Accountants, Lawyers etc.)

l) Political Parties

But there are exceptions to above and the following bodies/authorities/agencies may open Savings Bank Accounts.

a) Primary Co-operative Credit Society which is being financed by the Bank.

b) Small Farmers Development Agency (SFDA)

c) Fish Farmer’s Development Agency (FFDA)

d) Margin Farmers’ & Agricultural Labourers’ Agencies (MFAL)

e) Drought Prone Area Programme (DPAP)

f) District Development Agency (DDA)

g) District Rural Development Agency/Society/(DRDA/DRDS)

h) Integrated Rural Development Programme (IRDP)

i) Development of Women & Children in Rural Area (DWCR)

j) Self Help Group (SHG), registered or unregistered

k) Farmers Club/Vikas Volunteer Vahini (VVV), Informal groups of rural farmers or entrepreneurs.

l) Integrated Tribal Development Agency (ITDA)

m) Agriculture Produce Market Committee (APMC)

n) Khadi & Village Industries Boards

o) Societies registered under Societies Registration Act, 1860.

p) Companies Licenced by Central Government under section 25 of Companies Act, 1956 and permitted not to add Limited or Private Ltd.

q) Institution other than those in 4.7 and whose entire income is exempt from payment of Income Tax under the Income Tax Act, 1961.

r) Nagar Panchayats, Nagar Palikas and Municipal Bodies for placement of funds, given to them by Government under Nehru Rozgar Yojna towards the component of (i) subsidy and (ii) training and infrastructure under schemes for Urban Micro Enterprises (SUME) and Scheme for urban Wage Employment (SUWE).

s) The Zilla Parishad/Gram Panchayats can open Savings Bank accounts in respect of Jawahar Rojgar Yojna funds scheme and for funds released for implementation of various rural development/welfare programmes and/or Subsidy/Margin Money Linked Programmes sponsored by the State Government/Government of India.

t) Collector & District Magistrate/District Commissioners/DRDA may open SB account in respect of funds released for implementation of Member of Parliament, Local Area Development Scheme (MPLADS).

u) Government Department/Bodies/Agencies may be allowed to open Savings Bank Accounts in respect of funds released through grants or as subsidies for implementation of various developmental programmes/schemes, sponsored by Central Government and State Governments, on production of an authorisation to the Bank from the respective Government Departments certifying that the concerned Government department or Body has been permitted to open Savings Bank Account.

Minimum Balance:

The Minimum amount to Open a Savings Bank account and the minimum balance to be maintained therein is furnished hereunder:

1.    With Cheque Book Facility other than Pension Accounts

                     Metropolitan Urban Semi-Urban Rural

Individuals    1000               1000      500             250

Others           1500              1500      1000            250

2.    Without Cheque Book Facility other than Pension Accounts

Individuals     500                 500         250            100

3.    Pension Accounts (with Cheque Book Facility)

Individuals     250                  100         100            100

4.    Pension Accounts (without Cheque Book Facility)

Individuals       50                    50           50              50

Opening of Account:

The prospective account holder should be required to fill up and sign the Account Opening Form in the presence of Officer concerned. He should also be supplied with a copy of Savings Bank Account Rules.

In case of individual(s), intending to open SB Account Form DS-1A (Combined) is to be obtained.

In case of accounts of minors, declaration/proof of date of birth of the minor should be obtained.

In case of account holder signing in vernacular, indemnity Letter (Form D-43) should be obtained.

The Vernacular Signature Indemnity Letter (D-43) should be obtained in Savings Bank accounts, irrespective of the fact whether the account is operated upon by means of withdrawal forms or by cheques.

The Vernacular Signature Indemnity Letter in respect of Joint Savings Bank Accounts must be signed by all the joint account holders and not by the person(s) who are to operate on the account by signing in vernacular.

As far as possible, the person witnessing the Vernacular Signature Indemnity Letter should be an independent person known to the bank. If, however, such a person is not available the Manager may put his signature as a witness after the contents of the Indemnity Letter have been explained to the account holder.

Note: Vernacular Indemnity Letter (D-43) need not be insisted upon in cases where the accounts are opened and operated on under signature in the regional language and it is possible to have such signature verified by an authorized Officer at the branch.

In case account holder wants to avail of facility of collection of cheques, drafts etc., Indemnity/Letter (Form B-40) should also be obtained.

In case of accounts of illiterate persons photographs of account holder must be obtained.

The UCO bank has introduced five value added savings scheme namely, UCO Royal, UCO Elite, UCO Basic, UCO Chhatra and UCO Retiree. While the first three schemes are based on the balance maintained in the savings account, the last two schemes are meant for special types of customers, students and senior citizens respectively.