How to Open a Bank Account?

A current deposit account may be operated in several times during a working day. There is no restriction on the number and the amount of withdrawals from a current and banker does not allow any interest on this account. It is important to mention here that DBBL has imposed interest on current account recently, which is a unique offer in the banking industry.

As the banker is under obligation to repay these deposits on demand, they are called demand liabilities of a banker. To meet such liabilities the banker keeps sufficient cash reserves against such deposit. There are two facilities for the person who opens a current account. They are:

• Overdraft facility
• Collection of check transfer of money rendering agency, general utility service.

A person can open a current account or any entity the entry can be a partnership firm, Ltd, company, proprietorship firm, association, clubs etc. for opening a current a/c of the above, the requirements and steps, which are followed by this branch are the following

For a person:

There is an individual application from for opening personal current account. The person, who wants to open this type of a/c, is said to fulfill the following requirements:

• Name, father’s/husbands name
• Occupation
• Mandate in writing
• Declaration of nominee
• Letter of introduction
• Specimen signature
• Two copies of passport size photographs
• Initial deposit of Tk 1000.

For Joint stock companies, Association, Clubs etc:

In case of opening a current a/c of joint stock companies, association, clubs etc, the following requirements are said to fulfill:

• True copies of certificate of incorporation or registration
• True copies of certificate of commencement of business (in case of limited companies only)
• True copies of memorandum and articles of association ( in case of limited companies)
• Regulation by laws (in case of associations, clubs etc)
• True copies of resolution of the board of Directors of Managing committee/Governing body, regarding conduct of a/c.
• Certificate list containing names and signature of Directors/Officer bearers.

For Partnership/Proprietorship Company:

To open a current a/c on the name of any partnership or proprietorship company, the following documents are required:

• Filled up application from stating about the name and address of the firm.
• Partnership deed.
• Trade license.
• Two copies of photograph.
• Endorsement of an a/c holder on the same branch.
• Undertaking / declaration about the partnership is taken by the bank in a write paper ( for proprietorship firm)

For public and private limited company:

The documents required to open a current a/c will be:

• Copy of certificate of incorporation or registration, trade license.
• Copies of the Certificate of Business.
• True copy of memorandum of association and articles association abide by the law.
• True copy of resolution of the board of Directors / Managing Directors /Governing Body regarding conduct of the a/c.
• Certificate list containing names and signature of Directors/Officer bearers.
• In order to open an account, the customer is first of all asked to fill up the application form given from the bank. The bank requires few documents of the client due to the procedure, such as proposal for opening an account, name and full address, occupation.

Saving Account Opening:

A saving is meant for the person of the lower and middle classes who wishes to save a part of their income to meet their future needs and intend to earn an income from their saving.

All the features are like CD a/c as no restriction imposed by the bank.

• The bank offers a reasonable rate of interest.
• The necessary steps for opening a saving a/c.
• Names and Addresses of the party.
• Occupation.
• Father’s / Husband’s name
• Mandate in writing.
• Declaration of nominee.
• Letter of introduction.
• Power of attorney.
• Specimen signature.
• Two copies of passport size photograph.
• Initial deposit of Tk 1000.
• In this, the deposit supplied with the pass and checkbook for depositing and withdrawal purpose of money for which the banker maintain saving bank a/c opening register.

Short Term Deposit:

Special notice account which is commonly known as short term deposit a/c will keep in the short term ledger. The customer should dully sign a/c opening form and specimen signature card.

Entries Passed:

A deposit shall be prepared crediting the STD a/c with the amount of deposit.

Cash—————-Dr

               STD a/c —————-Cr

If the amount is deposited by the check or transfer a/c, the following entries shall be passed.

Party C/D, S/D a/c————–Dr

               STD a/c———————————–Cr

The account opening shall be pasted in the pasting file in numerical order.

The credit voucher shall be passed in the STD a/c of the party.

In case of letter of attorney to debit the STD a/c of the customer voucher will be prepared and the following entries shall be passed:

STD a/c ( party ) —————-Dr

               C/D ( party ) —————————Cr

Minimum seven days notice in required for withdrawal of any sum from STD a/c.

Banker is not legally liable to the customer, if the check is dishonored under the following conditions, although the check is properly drawn:

• If the fund is insufficient.
• If the payment is stopped by the drawer.
• If payment is stopped by the court by issuing gamishee order.
• Any competent authority issues attached order.
• Check is presented after the death of the customer.
• Notice of assignment.
• Check presented after the business/banking hour as declared earlier.

Letter of introduction:

This is a letter of certification, from a person, who is valid customer of that particular or any other branch and maintaining any kind of a/c. usually, a customer from other branch is not allowed to be the introducer, it is permitted. The process of introducing a new client can be done on the form itself. There is a space in the application form where the introducer will write his/her a/c no, address and sign his/her specimen signature.

It is always advisable on the part of the banker to allow the prospective customer to open an a/c only with a proper introduction from a responsible person, known to both the parties. A letter of introduction always protects a banker in the following ways-

• Protection against fraud.
• Protection against inadvertent overdraft.
• Protection against un-discharged bankrupt.
• Protection against negligence under sections 131 of Nl act.
• Protection against giving incorrect information to allow banker.

Declaration of nominee:

The person who wants to open an a/c can mention one or two nominee. The application will give a declaration in the space given on the a/c opening form, stating the name and father’s name, age, address, relation and percentage of share. The a/c holder can change the nomination any time and it will be valid, only after the death of the a/c holder.

Specimen signature:

The applicant will sign on the application and he will be provided with an extra paper where he will sign three or more signatures, which he has to maintain all through the duration of the account.

Interview: At the time of the opening of a new a/c, this concerned branch always takes an interview with prospective customer so as to obviate the chances of preparation of any fraud at the latter stage.

Initial deposits:

It is always a common practice among the bankers to allow a new customer to open an account only in cash and DBBL; takes tk.500 as initial deposit foe saving account and tk.1000, for current deposit a/c.

Operating Instruction/Mandate in writing:

If any party wants his a/c to be operated by somebody else, he will provide the banker in writing statement about the operator.

Verification of documents:

The banker should verify some of the important documents, like the Memorandum of Association, Article of Association, and by laws copy etc. in other cases, the verification of certain other documents like, Trust Deed Probate, letter of administration etc, may be needed.

Conversation with the provision of special acts, since a banker is to deal with different classes of customers, he has to be thoroughly conversant with certain laws.

Pay in slip, Check-book and Pass book:

The customer is supplied with a part-in-slip to use for depositing cash or check of bill into a/c. the customer is also supplied with a check book for drawing money as and when the customer wishes, which normally contains 10 to 20 bank forms. If the customer dose not likes to have check book, then he can make use of suck kind of form.

In addition to the above, a customer is given a passbook, which reflects the customer’s a/c in the banker’s ledger. It usually contains the rules and regulations of the bank and terns and conditions of deposits.

Fixed Deposit Accounts:

A fixed deposit account is repayable after the expiry of a predetermined period fixed by the customer himself. The period varies from three months to three years. The customer may open his/her account for different time periods, which may be for three months, six months, one year, two years and three years.

Though FDR is an A/c, it is something different from other a/c. FDR is a long term deposit. Usually customers are allowed to open this a/c for a certain period. The rate of interest varies in accordance with the terms of deposit.

Opening of FDR:

There is a prescribed form for opening FDR. No introducer and photograph is required for opening this a/c a minimum amount as determined by the H.O is required to open such an account.

Premature Encashment of FDR:

A depositor has the right to claim for refund of his deposit before expiry of the fixed term there of. Bank may in special consideration allow premature encashment on application of the deposit subject to the under noted condition:

• For FDR which are 3 months maturity no interest will be payable at premature encashment, only the principle amount will be refunded.
• When premature encashment is allowed of and FDR with tenure of over 3 months, interest will be paid if enchased before expiry of 6 months at the rate of 3months prescribed interest rate.
• Premature encashment is allowed of and FDR with tenure of over 6 months, interest will be paid if enchased before expiry of over 12 months at the rate of 6 months prescribed interest rate and the same theory will also be applicable for premature FDR encashment of 2 years and 3 years.

Monthly term Deposit:

It is an innovative offer of DBBL, which is a scheme like FDR but in different definition. In this scheme the MTD holder can withdraw the interest amount after end of each months where principle amount will remain as usual. Different interest of DBBL:

Closing of an account:

A customer may close his/her account any time by submitting an application to the manager or to the branch in charge. The account of the customer is then checked to see how much money is still in it. The customer is then asked to draw a final check for the final account in the account excluding account close charge and other incidental charges. The customer then surrenders remaining checks to the respective officer who tears off these checks. Vouchers are then issued debiting the particular account and crediting.

In case of joint account the application to close the account must be signed by the holders even though the account is operated either of them. The entire joint holder should also sign the last check of withdrawal of the available balance in the account.

The paying bank within Dhaka City:

The check clearing section of DBBL Mirpur branch receives Inter Branch Debit Advice (IBDA) from the branches on the receiving day of the instruments. The DBBL Mirpur Branch takes those instruments to the clearinghouse on the following day. If the instruments is dishonored, the respective branch sends IBDA to the other local branches. The total procedure takes three days to encash the instrument if everything is in order.

The paying bank outside Dhaka City:

The check clearing section of DBBL Mirpur branch receives Outward Bills for Collection (OBC) to the concerned paying bank to get IBDA from the paying bank. If the paying bank dishonors the instrument, the paying bank returns it to the respective branch with the description of the causes of dishonoring instruments. The procedure takes around a week.