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.
