TYPES OF
CUSTOMERS--
PERSONAL, NON
PERSONAL CUSTOMERS
- MANDATES FOR
OPERATIONS,
NOMINATIONS; BANKER
CUSTOMER
RELATIONSHIP
By CLD HYDERABAD
Who is a customer ?
A person or entity who maintains
an account and/or has business
relationship with bank
One on whose behalf account is
maintained (Beneficial owner)
Any person/entity connected with
a financial transaction through a
bank which can pose significant
reputational or other risks to the
bank, say, wire transfer or issue
of a high value demand draft as a
DEFINITI single transaction
ON OF Beneficiaries of transactions
conducted by professional
CUSTOM intermediaries such as Stock
ER brokers, CA, Solicitor General (as
permitted under law)
A CONTRACTUAL RELATONSHIP
OR A CONTRACT
A Contract: An
A fiduciary Agreement
Relationship enforceable by law,
Section-2(h)
Customer-Banker is A contract defined
a contractual by Indian Contract
relationship. Act, 1872
The promisor
makes the proposal
to the promise to
A contract has two
do or to abstain
sides: Promisor or
from doing & Such
Promisee, Section-
act or abstinence is
2(c)
called
consideration,
Section-2(d)
Customer
Non
Individual
Individual
Customer-
Customer
TYPE OF
CUSTOM
ERS
Opens Personal Accounts with
bank which may be single or in
joint name
I Individual customer includes
#Individual above 18 years
#Minor of age up to 10 years
INDIVID #Minor of age above 10 years
UAL #Illiterate
CUSTO #Blind person
MER #Differently abled person
Proprietorship
NON Non Individual customers include
INDIVID Partnership Firm
UAL
CUSTO Limited Liability Partnership Firm(LLP)
MERS/N Companies: Private Limited Company,
Public Limited Company, Government
ON Company, Personal Company
Trust
PERSON
AL Club & Society
CUSTO HUF( Hindu Undivided Family)
MER
1) Individual should be 18 Years
2) He should be of Sound Mind
3) Not Disqualified by Law
4) Should not be an Insolvent
5) Not be in the state of
drunkenness or delirium
6) Not be a lunatic
WHO IS
CAPABLE OF
CONTRACT
ACCOUNTS OF SINGLE
INDIVIDUALS
In the name of an Individual and
Operated by himself or herself.
Can be authorized by Power of
Attorney
With Nomination or Without Nominee.
Individual Person above 18 (Attains
Majority)
Having Sound Mind
MINOR ACCOUNTS
Below 18 Years
Opened with Natural Guardian or Mother or
Legal Guardian
RBI allows Hindu Mother to operate.
Account can be opened in the Joint names of
the minor and guardian
Two Literate Minors can also open a joint
account.(Same Family)
Literate Minor above 10 can open the SB
account and self-operate
SB/FD/RD can be opened
by Minor of any age
through his natural
guardian or legal
guardian
Account opened through
his or her natural
guardian or legal
MINOR guardian won’t be
allowed to be overdrawn
ACCOU Account opened through
NTS his or her guardian will
always be in credit
balance
MINOR ACCOUNT
Current Account Minor cannot No loan is to
cannot be nominated in
Opened in self operated be given to
Minor’s name account minor
Debit Card, Cheque Section-26 of NI Minor can be
Book (Not for third admitted as a
Act-Minor cannot
party payment) & partner of the
Passbook may be be held Partnership Firm but
given accountable cannot be held liable
A minor can be
appointed as
agent but not
accountable
When the minor becomes major, the
account will be made inoperative.
MINOR If it is operated by the guardian
ACCOU 1. Closure request, closure
proceeds will be credited to the
NTS- erstwhile minor on production of his or
her identity.
UPON 2. Continuance: Fresh
Mandate, Fresh Specimen Signature
and also fresh KYC.
If a/c had been operated by self: A
balance Confirmation will be taken.
ATTAINI If the account has been operated by
NG two minors, upon one of them
attaining majority, the account to be
MAJORI closed after obtaining the balance
confirmation signed by both the
TY account holders.
They may open new account
Can Open and operate the
account
Two Witnesses at the time of
Opening of the account
The signature to be authorised by
the bank official
Each and every transaction to be
VISUALLY witnessed by two persons.
CHALLEN One witness is an outsider and another
GED a responsible officer of the bank
PERSON Care must be taken that the witness other
than bank official must be known to the
ACCOUN bank as well as the blind account holder.
TS
ACCOUNT OF PERSON WITH
AUTISM, CEREBRAL PALSY, MENTAL
RETARDATION & MULTIPLE
DISABILITIES
Saving and term deposit account can be opened
by the legal guardian appointed by District court under
Mental health act, 1987
Or by the local level committees set up under the
national trust for welfare of persons with autism,
cerebral palsy, mental retardation and multiple
disabilities under disabilities act, 1999
The appointed legal guardian will furnish an indemnity-
cum-undertaking bond duly stamped
Since she is most of Discourage such
accounts but take
the time in seclusion,
adequate precautions
her identification is
while opening such
somewhat difficult.
accounts
Photograph of the
Pardanasin
Woman must be
obtained
PARDAN
ASIN
WOMEN
PARDAN
ASIN
WOMEN
As per provisions of Indian
Lunacy Act, 1912 insane or
lunatic means a person who
is of unsound mind.
As per Indian Contract Act (S.
11) a person of unsound mind
is not capable of entering
into a valid contract.
Hence Accounts of insane
LUNATI persons cannot be opened
C
PERSON
No account
Unable to
should be opened
discharge his or or no loan to be
her liabilities granted
The operations
in the account
of the insolvent
to be stopped
Can be
operated by the
Official Receiver
INSOLV
ENT
PERSON
G
u
a
r
d
i
a
n
C
e
r
t
i
f
i
c
a
t
e
t
o
PERSONS
WITH AUTISM,
b
e
i
s
s
u CEREBRAL
PALSY,
e
d
MENTAL
y
t
h
RETARDATION
e
AND MULTIPLE
o
c
a
l
c
o
u
r
DISABLITIES
t
o
r
L
o
c
a
l
C
o
m
m
i
t
t
e
e
A person who cannot read or write
Competent to enter into contract
Thumb Impression to be obtained in the
agreement
LTI-Male and RTI- Female
To be authenticated by bank officer
Photograph to be identified by officer
Creating evidence that he or she understood
ILLITERAT the content
E
2 witnesses are required
Joint account of two illiterates can be opened
PERSON but caution to be taken
Joint account with literate can be opened but
with caution
ACCOUN Normally, no cheque book to be issued but
exceptions are there
TS
ACCOUNT OF
TRANSGENDER
PERSONS
In case of a person claiming to be transgender and
needs to open account or to do any banking
transaction,
The person will be recognized as “Third Gender”
All transgender customers shall be treated equally to
other male/female
MODE OF
OPERATION
For Single Account
Singly
For Joint Account
Either/Survivor
Former/Survivor
Later/Survivor
Any one or Survivor
Jointly
MODE OF OPERATION
Transaction Either or survivor Former or survivor Joint operation
Signature on AOF All All All
Stop payment Any one Former Any one
Request for loan All jointly All jointly All jointly
Pre-mature payment of All jointly All jointly All jointly
FDR
Payment on maturity Any one Only former All jointly
Closure of the account All jointly All jointly All jointly
Nomination All to sign All to sign All to sign
Payment in case of Survivor till any of Survivor till any of Survivor and legal heir of the
nomination them is alive them is alive deceased till any of the
survivor is alive
NOMINATION FACILITIES
IN BANK
Banking Companies (Nomination) Nomination facility was
Rules 1985 permits banks to pay introduced on 29th March
dues to nominees in the event of
death of depositor(s) without
1985 in the Banking
asking for succession certificate Regulations Act, 1949 Sec
or verifying claims of legal heirs 45- ZA to 45-ZF.
NOMINATION
The Banking Companies (Nominations) Rules 1985 have been framed in
terms of Sections 45 ZA to 45 ZF of the Banking Regulation Act, 1949
Nomination is not mandatory but customer must be
informed about its advantage
Nomination facility available for all type of deposit
accounts
Nomination facility is intended for individuals including
sole proprietorship concern
Minor cannot nominate for his deposit accounts but
can be a nominee
NOMINATION
Nomination are available for:
• Deposit Accounts
• Safe Custody Accounts and
• Safe Deposit vault accounts
NOMINATION
FACILITIES Acceptance of Pay/Deliver only
Nomination To nominees
DEPOSITIES 45 ZA 45 ZB
SAFE CUSTODY 45 ZC 45 ZD
SAFE DEPOSIT 45 ZE 45 ZF
LOCKER
WHO CAN BE A
NOMINEE???
The nomination to be made in favor of only
individual but not in favor of Trust, Society etc.
Nomination can be made in favor of one person
only.
It can be made in existing or new accounts and can
be cancelled or changed subsequently by the
depositors
Government Deposit Schemes allow more than one
nominees in their accounts. Such as PPF, Sukanya
Samridhi Scheme, Senior Citizen Saving Scheme, PF,
Gratuity etc.
NUMBER OF NOMINEE
IN BANK
TYPE NATURE NUMBER
DEPOSIT SINGLE/JOINT Only One
Safe custody Only Single Only One
Safe Deposit Lockers Single Only One
Safe Deposit Lockers E/S Only One
Safe Deposit Lockers F/S Only One
Safe Deposit Lockers JOINT OPERATION More than one
nomination, max up to
number of locker holder
Nomination, cancellation of
nomination or variation in
nomination can be made at any time
during the currency of the deposit
A nomination will continue to be in
force even on renewal of term
NOMINA
deposit, unless specifically
cancelled or changed.
TION Notation: “Nomination Registered
on………………….”
Name of the Nominee will not be
mentioned until and unless
specified by the customer.
DIFFERENT FORM FOR
NOMINATION
DA 1- for making nomination
DA2- for cancellation of
NOMINA nomination
TION DA3- for variation of nomination
In the case of a joint deposit account, the
nominee’s right arises only after the
death of all the depositors
In case of depositor affixing his/her thumb
impression – nomination is to be
witnessed by two person
The nominee is treated as a Trustee for Legal
Heirs for receiving the money or articles
after death.
He is not owner. He does not acquire right of
a depositor. He cannot operate the account.
NOMINA
TION Bank is obliged to make payment to nominee
(no one else), except as per court order.
On payment to nominee, bank is discharged
from liability
BANKER-
CUSTOMER Transaction Bank Customer
RELATIONSHI Deposit in Debtor Creditor
the Bank
P
Loan from Creditor Debtor
Bank
Locker Lessor Lessee
Safe Custody Bailee Bailor
Purchaser of Debtor Creditor
Drafter
Payee of Trustee Beneficiary
Drafter
Collection Of Agent Principal
Cheque,SI
