Who can introduce a Current Account?

i) Any current account holder whose account is at least six months old and is being operated in a satisfactory manner.

ii) A responsible member of the locality, know to the Manager or any officer of the branch, although the introducer himself may not be an account holder of the branch.

iii) Introductory letter from the commanding officer of the concerned military unit along with the identity card of the military personnel shall serve the purpose of introduction.

iv)  Any officer of the bank having signing power.

v) Any other confirmed staff member of the branch.

REQUIREMENT OF PERMANENT ACCOUNT NUMBER (PAN) OR GENERAL INDEX REGISTER (GIR) NUMBER WHILE OPENING CURRENT ACCOUNT

With effect from 1st November 1998, it has become obligatory on the part of Banks to obtain PAN or GIR number from the persons opening current account under the provision of Rule 114B of Income Tax Rules 1962. PAN or GIR Number is to be mentioned on the account opening form. The details of guidelines in this regard are furnished below.

i) Every prospective account holder at the time of opening current account shall be required to furnish PAN or GIR number on the account opening form.

ii) If the party is not an Income Tax Assessee, he shall have to give declaration in Form No. 60.

iii) If the party is not an Income tax assessee because he derives all his income only from agricultural sources, he shall have to give declaration in Form No. 61.

iv) Under the provision of Rule 114 B of IT Rules 1962, it would be necessary for the Bank to verify the proof of residence also at the time of opening account.

Minimum Balance Schedule: Current Account

                           Metropolitan      Urban     Semi-Urban Rural

Individuals                3000              3000      2000            1000

Others                       5000              5000     2500             2000

The bank has introduced tierised current accounts to provide additional services to the current account holder customers depending upon the average balance maintained in their current accounts. These facilities are available in all CBS enabled branches and selected fully computerized branches at present. The three tierised current accounts are namely. Basic, UCO value and UCO Premium.

Note: Though no interest can be paid on current account credit balance there are few exceptions to it. Interest is payable at Savings Bank rate on the credit balance of a deceased depositor’s account till balances are paid to the legal heirs. The system will also apply to sole proprietary firms.

Current Account

‘Current Account’ means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposits nor Term Deposits.

In current accounts, as the money deposited can be withdrawn at any time, as there is no limit as to the number of withdrawals, there is significant work involved for the bank. Considering this, the bank does not pay any interest on such accounts.

A Current Account can be opened by –

a) An individual who has attained the age of majority.

b) More than one individual in their joint names (all being major persons)

c) Joint Hindu Families

d) Sole Proprietorship

e) Registered and Unregistered Partnership firms.

f) Private and public limited companies.

g) Club and societies

h) Trusts

i) Others viz. Executors and Administrators.

j) Government and semi-government bodies.

k) Provident Funds

l) Banks, LIC, Subsidiaries of GIC etc.

Before opening a Current Account, a declaration is required to be obtained from the applicant regarding credit facilities, if any, enjoyed by the applicant at any other bank and in case such credit facilities are enjoyed, the particulars thereof are to be furnished.

RBI has now directed that where the applicant is enjoying credit facility (fund-based or non-fund based) from the banking system, the account will not be opened without specifically obtaining a No-Objection Certificate from the lending bank(s).

For all operative deposit accounts opened on or after January, 1, 1994, branches should obtain photographs at the time of opening of the accounts of the deposits/account holders who are authorized to operate the accounts. These photographs should be affixed on account opening forms and specimen signature cards.

Note: 1. Current account in the name of a minor should not normally be opened.

2. A Current account should not be opened which is to be operated under a thumb impression, cross marks or signature by hand of another person.

3. Nomination facility is available in respect of Current account of individuals and sole proprietorship firms.

4. Every current account should be properly introduced.

5. Before opening any deposit account, the due diligence as required under ‘Know Your Customer’ (KYC) shall be made.

CURRENT DEPOSIT ACCOUNT RULES

1. Current Deposit Account can be opened by one or more individuals, proprietorship concern, Partnership Firm, Joint Stock Company, HUF, Trust, Local Body, Society, Club, Government, Department/Corporate/ Undertaking or bank, approved by the bank, subject to their agreement to comply with Bank’s rules and regulations.

2. Account will not be opened which is to be operated under a thumb impression, cross mark or signature by hand of another person.

3. Account must be properly introduced to the Bank by someone already known and acceptable to the Bank.

4. Change in the address, telephone number and/or constitution should be immediately intimated to the Bank.

5. Minimum balance as prescribed by the Bank from time to time should be maintained to avoid penalty.

6. Cash and cheques should be deposited in the Bank at the specified counters only.

7. A) The customer should examine the Pass Book/Statement of Account and in case of any discrepancy, it should be brought to the notice of the Bank within seven days from the date of receipt thereof.

The Bank will not be responsible for any loss arising from negligence of customers in this respect.

B) If the Pass Book/Statement of Account is lost and a duplicate there for is sought, the depositor will have to apply for a duplicate pass book/statement and pay charges as may be decided by the Bank from time to time.

8. Withdrawals are permitted only by cheques supplied by the bank. For a new cheque book, printed requisition from in the cheque book must be used. A service charge, as may be decided by the Bank from time to time, will be valid for issuance of new cheque book the cost and responsibility of the account holder. At the time of receiving the cheque book, if any cheque is missing therein. The cheque book

must be kept in secured possession of the account holder. Any loss must be brought to the notice of the Bank forthwith.

9. Cheques should be crossed before being deposited for collection. Cheques returned unpaid will attract service charges plus interest as applicable.

10. Cheques should be drawn against clear funds in the account. Cheques should not be drawn in anticipation of funds to be credited to the account. Also, cheques issued and dishonored due to account holder’s fault such as insufficiency of funds/cheques drawn irregularly etc. will attract, part from service charge levied by the Bank, penal provision under the Negotiable Instrument Act.

11. Mutilated, stale, post dated and irregularly drawn cheques, as also cheques containing extraneous matter, are liable to be dishonored. Any alteration is to be authenticated by drawer.

12. The collection of outstation cheques will be made at Service charge rates fixed by the bank from time to time.

13. Folio charges as prescribed by the Bank and out of pocket expenses namely postage etc. incurred in connection with handling the account will be debited to the account.

14. The Bank reserves the right to send unpaid cheques, discharged bills, advice, letters etc. to account holders by post and the evidence of their so dispatched as contained in the Bank’s records will be conclusive and binding upon the account holders concerned.

15. Interest will not be paid in current accounts.

16. The Bank reserves the right to close any account after notifying the account holder and the Bank’s decision in such matters will be final.

17. The Bank reserves the right to modify/change these rules and such alterations and additions communicated by putting up a notice in Branch Premises, shall be binding on the account holder.