Introduction
Bank account is a contractual agreement between a bank and its customer, allowing the customer to use bank service for a fee. Accounts may be established in the name of individuals or firms. There must be some recognizable course or habit of dealing between the customer and the banker. The transactions must be made in the form of regular banking business. The obligation of a banker to maintain secrecy of the account holder. The bank collects the proceeds of the account holder on his behalf.
Bank gives reasonable notice before closing the account. A person who has a bank account in his name and for whom the banker undertakes to provide the facilities as a banker is considered to be customer. It not essential that the account must have been operated upon for some time. Even a single deposit in the account will be sufficient to designate a person as customer of the banker. Though emphasis is not being laid on the habit of dealing with the banker in the past but such habit may be expected to be developed and continued in future.
justification of account’s Opening
Bangladesh is a small country. Many kinds of industries are situated in our country. All industries of Bangladesh complete their transaction by account. Now industries of Bangladesh give salary to employees by cheque. Many kinds of businessman like cheque for payment. Besides when a sale proprietor open an account in bank. Then he or she takes loan from that bank. It is vary important for a sale proprietor. Banks of our country give salary to employees by cheque. Besides universities of Bangladesh give salary to teachers by cheque. So, account’s opening essential for us.
objectives of the assignment
We some objectives behind the makings of assignment. We indicated some objectives of our assignment. They are very important objectives of our assignment are:
a) How many types of account is there Islamic Bank Bangladesh Ltd. to be used by the country?
b) Which account provides?
c) What facilities give of the bank?
Compare between Islamic Banks and Other Private Banks:
Bangladesh has some Islamic banks and many Private Banks. Islamic banks of our country are:
i.Islamic Bank Bangladesh Limited.
ii.Al- Arafah Islamic Bank
iii.Al- Falah Islamic Bank.
Private Banks of our country are:
i.Duch Bangla Bank
ii.BRACK Bank
iii.Dhaka Bank
iv.Standard Charter Bank
v.Southeast Bank
vi.Prime Bank
vii.Bank Asia etc.
Now financial condition of Islamic bank is good than other private banks. Last year Islamic bank of our country earn more profit than others commercial banks. Besides many people of our country are Muslims. They tend to maintain rules of Islam and they do not like interest because interest is severely prohibited in Islam. So, majority number of people maintains their account in Islamic bank. So, financial condition of Islamic bank is better than other private bank.
Compare between Islamic banks and Other private banks for benefit of account holder:
This year highest rate of Islamic bank share is 6500 Tk and lowest rate is 5500 Tk. Besides, this year highest bond price of Islamic bank is 1850 Tk. And lowest price is 1420 Tk. This year other Private Banks average highest price of share is 3790 Tk and average lowest price of share is 2500 Tk. So, Islamic bank is better for account holder.
Suggestion for account holder:
When you want to open a bank account and you confused which bank is good for account opening. You can justly share market of banks. Then you get information this year which bank gets more profit. Then you can open a account in your choicable bank. To elaborately discuss about the procedure of account opening.
Chapter 2
Facility Provided by Islamic Bank Bangladesh Limited in Accounts Opening
Introduction
Islamic Bank Bangladesh Ltd. is an Islamic bank of our country. Islamic Bank Bangladesh Ltd. has many kinds of branch in our country. Mainly, this bank has two types of account. One is operating account and another is non- operating account. This Islamic bank maintains their work by Islamic shariah. Islamic Bank Bangladesh Ltd. does not take interest from borrower for loan. This bank take money loan from earn of borrower. This bank also does not give interest to depositor for their deposit. Islamic Bank Bangladesh Ltd. gives money to depositor from their profit. Islamic Bank Bangladesh Ltd. is a financial institution whose statutes, rules and procedures expressly state its commitment to the principles of Islamic shariah and to the banning of the receipt and payment of interest on any of its operations.
Different types of Bank Account:
Types of Account
Mainly Islamic Bank Bangladesh Ltd. has two types of account. They are:
- Operating Account
- Non- operating Account
Operating Account:
Operating account is one type’s account of Islamic Bank Bangladesh Ltd. Operating account has three types. They are:
i.Current Account
ii.Savings Account
iii.STD Account
i.Current Account:
Current account is a running with amounts being paid into and drawn out of the account continuously. These accounts are also called demand deposits or demand liabilities since the banker is under an obligation to pay the money in such deposits on demand. The account never becomes time barred, because the limitation does not run until the customer makes demand on the bank for the payment of deposits. A current account holder anytime draws cheque. Account can be overdrawn by special arrangement with the bank. Cheque drawn without such special arrangements is not only dishonored, but the bank also reserves to itself him right of closing such accounts without notice to the customers. The account holder is allowed the facility of sending bills, notes and cheque for collection, including third party cheque. The third party cheque is one in which the customer does not figure as payee. In the case of savings account holders such cheques are not accepted for collection.
Precautions for Opening a Current Account:
Before opening a current account, the banker should obtain references from respective parties regarding the customer’s integrity and respectability. Opening an account without satisfactory references could be a source of immeasurable hassles from legal as well as practical point of view. It has gained added significance in the wake of anti- money laundering initiatives of the central bank and the government of Bangladesh. One risk in opening accounts without satisfactory references is that the prospective customer could be a fraud. With a cheque book in his hand he might indulge in playing tricks by passing around cheques without having money in his account. The bank may be asked to bear the consequences if it is found to have opened the account without references or introduction.
ii.Savings Account:
Savings account are mainly meant for not trading customers who have some potential for saving and who do not have numerous transactions entering their account. Salaried class of the lower and middle income group small traders and farmers mainly open such accounts. A customer cannot draw more than two times and more than a limited amount from this type of account. A seven days previous notice is required on the part of the customer if he/she wants to draw a large amount from savings account. Interest counted two times in year. Interest is not counted on an account when a customer has more than 5 lakh Tk. in savings account minimum Tk 50 is needed to open an savings account and a cheque book is issued when balance is taka 100 to a customer. Bank can transfer the account from one branch to another in request of he customer and the banker has his right to stop the transaction with the customer.
iii.STD/SND Account:
SND means Short Notice Deposit. This is one types of account of Islamic Bank Bangladesh Ltd. Yearly change of this account is 1000 Tk. This is special account of Islamic Bank Bangladesh Ltd. Many kinds of account holder like this account.
Non- Operating Account:
Islamic Bank Bangladesh Ltd. has much non- operating account. They are very essential. Non-operating accounts are:
i.FDR:
FDR means Fixed Deposit Received. This accounts mainly based term deposit. It is special deposit account of Islamic Bank Bangladesh Ltd.
ii.PTD:
It is another account of non-operating account. It is very important.
iii.STD:
STD is one kinds of deposit. This deposit constitutes a very important resource for banks.
iv.ITD:
ITD deposits may be made in multiples of Tk. 2000 or Tk. 3000 every month for a period running from 5 years to 12 years. The rate of interest is similar to the rates offered on fixed deposits, but the interest is compounded on maturity the customer can withdraw the total amount accumulated in his account at a time or in some future installments. We submit an ITD form in this page.
v.MHD:
Now many kinds of people of our country are like MH Deposit. Because it is more profitable for the depositors. It is essential deposit for Islamic Bank Bangladesh Ltd.
vi.Joint account:
When two or more persons open an account jointly, it is called a joint account. Such an account may be opened by any two persons for the sake of convenience of operation of account and also for withdrawal of money after the death of any one of them. The banker should take he following precautions in opening and dealing with a joint account:
a) The application for opening a joint account must be signed by all the persons intending to open a joint account.
b) The banker should obtain clear instruction in writing, signed by all the joint account-holders, regarding the operation of the account. The joint account may be operated in any of the following ways:
By all the depositors jointly
By either or survivor of hem
c) The mandate must include the name or names of the persons who are authorized to operate the joint account and must specify the extent to which they are authorized to take advance or to pledge the securities, etc. In the absence of such instructions, the banker should honor only those cheques which bear the signature of all the persons in whose names the account stands.
d) The joint account holder, who is authorized to operate the joint account himself alone, cannot appoint an agent or attorney to operate the account on his behalf. Such attorney or agent may be appointed with the consent of all the joint account holders.
e) Any joint account holder can stop payment of a cheque issued on a joint account. Banker must honor such order even if an agent or attorney has been appointed to operate the account.
f) The authority to operate the account can be revoked by any of the persons giving such authority. It is automatically revoked if any of the joint account holders dies, becomes bankrupt or f unsound mind. The banker must stop payment in such case.
Service of Islamic Bank Bangladesh Ltd. for account holder
When a person open an account in Islamic Bank Bangladesh Ltd. Then Islamic Bank Bangladesh Ltd. give varies service to account holder. This is essential for account holder. When an account holder draws cheques without sufficient balance or do not draw cheque properly. Then bank inform to account holder about this. When a account holder do not know how he/she fill up – how he/she fill up a cheque.Besides, any account holder of Islamic Bank Bangladesh Ltd. can give complain about Islamic banks service in complain box.
Obligations of Islamic Bank Bangladesh Ltd. to accounts holder
Islamic Bank Bangladesh Ltd. has obligations for account holder. They are essential. Main obligations of Islamic Bank Bangladesh Ltd. to account holder are:
Honor cheque of account holder.
Maintain secrecy of the account holder.
Collect the proceeds of he account holder on his behalf.
Give reasonable notice before closing the account.
Honor cheque of accounts holder:
Account holder draws a cheque for money. When an account holder draw a cheque to bank. Then bank definitely honor that cheque.
Maintain secrecy of the account holder:
Many kinds of businessman or person and industries open account in bank. They want to secrecy of their account transaction. So, maintain secrecy of the account holder is very important.
Collect the proceeds of the account holder on his behalf:
When any cheque of accounts holder is no payable. Then bank inform to account holder immediately. It is important for account holder.
Give reasonable notice before closing the account:
Bank want to close any account of account holder then bank give reasonable notice to account holder before closing the account. It is obligation of bank to account holder.
Chapter 3
Process of Account Opening
Introduction
Any one wants to open an account in bank. Then at first he/she will fill up form of bank account properly. He/she will write his/her name, address and other important information in form. Then he/she will take signature in his/her prescribe form from introducer. Besides, account opener mentions his/her occupation in form and definitely he/she will mention his/her specimen signature. Account opener will join his/her attest photo with form. These are very essential for process of account opening.
Fill up system of accounts opening form
You are to fill up the accounts opening form given by the bank and in that form the following information are given:
a) Name:
When a person want to open an account his/her own name then he/she mention his/her full name in form. But any one wants to open a account his/her company’s name. Then he/she will mention his/her company’s name inform.
b) Address:
Any one want to open an account his/her own name. Then he/she will mention in form his/her own address. But he/she wants to open an account his/her company’s name. Then he/she will mention in form his/her company’s address.
c) Occupation:
When any people want to open an account in bank. Then definitely he/she will mention his/her occupation in form.
d) Attest Photo:
Attest photo is very important for accounts opening form. Because without photo bank can not identify who is open account in bank.
e) Signature of Introducer:
Any people want to open an account in bank. Then signature of introducer is very essential for his/her account opening form. Without signature of introducer any one can not pen a account.
f) Specimen Signature:
It is essential for account opening. Account holder can not take money from bank without this signature. When account holder will draw cheque. Then he/she will give this signature in cheque.
How we can perfectly fill up a current account form. You can know this from this filling form:
Current account form
Savings account form
ITD form
submit form to the officers
After properly fill up the accounts opening form. You will submit this to he officers of bank. Then officer check that form. Especially officer check your name, address, photo and signature of introducer. Because this is important officer also check your signature.
Take cheque book and savings book from bank
You will submit account opening form to officer of bank. Then officer give you a book. That book is savings book. You can savings your money by that book. When you need money. Then you will draw cheque and submit cheque to counter bank. That time you get money form bank counter.
continue transaction in bank
When an account holder get cheque book and savings book. Then he/she continue transaction in bank. Account holder need money from bank. That time he/she will draw cheque and submit to bank counter.
Fill up system of cheque
Draw system of current account cheque and savings account cheque are similar. This is very important.
Fill up system of savings book
You savings your money in bank. Then you fill up savings book and submit savings book with money to bank cash counter.
Chapter 4
Importance of Accounts Opening
Introduction:
Day by day number of private bank is increasing in our country. Because many kinds of people of maintain their financial transaction by bank account. Financial transaction by bank account is safes way for people. So, many kinds of people like bank account for financial transaction. Various industries are situated in our country. Industries are maintaining their financial transaction by bank account. Industries are also maintaining their financial foreign transaction by bank. So, accounts opening are very important.
Why accounts opening are important
Now, many kinds of people of our country maintain their financial transaction by bank account. Because it is safest way for financial transaction. Many kinds of industries are situated in our country and that industries are maintain their financial transaction by bank account. Besides, industries give salary to employees by cheque. Universities of our country also give salary to teachers by cheque. So, accounts opening are very important for every day. Without accounts opening we can not maintain foreign transaction.
Important of accounts opening for a person
Accounts opening essential for every people. Accounts opening are important for student, teacher, employee and others. A student pays their tuition fee to university by cheque. It is a good for a student. A teacher get his salary by cheque.It is also good for teacher. Now many kinds of employee of our country get their salary by cheque. So, important of accounts opening for a person is extensive.
Important for accounts opening for a sole proprietor and partnership business
If you are a sole proprietor or a small trader you have two options for account opening. You can open an account in your own name or you can open an account in the trade name. But the fact that no other person other than the sole trader has got any interest in the business as a proprietor and sole proprietor will be personally liable for all dealings in the name of the business i.e. the trade name. Account opening is also important for partnership business. Partnership business maintains their financial transaction by bank account. So, important of accounts opening for a sole proprietor and partnership business is extensive.
A banker should take the following precaution while opening an account in his name of a partnership firm:
Number of partners
Opening of an account
The partnership letter or mandate
Revocation pf authority to operate the account
A partner authorized to operate the firm’s account cannot delegate his authority to another person without the consent in writing of all other partners.
Chapter 5
Islamic banks account or other private banks account which one is good for account holder
Introduction
Many kinds of Islamic banks and private banks are situated in our country. Many kinds of people of our country like private banks. Islamic banks of our country do not give interest to depositor for their deposit. Other private banks give interest to depositors for heir deposit. Islamic bank’s give money to depositor from their yearly profit. Other private bank’s give loan to borrowers for interest. But, Islamic banks do not take interest from borrowers. Islamic bank’s take money from borrower’s profit.
When Islamic banks account is good for account holder
Greater number of people of our country is Muslims and they like Islamic rules and regulation. Islamic banks lead their bank by Islamic shariah. So, many kinds of people of our country like Islamic bank. Last year and this year Islamic banks financial condition was very good. This year average high rate of Islamic banks share 6,500 Tk. and average low rate of Islamic banks share 5200 Tk. So, Islamic banks account is good for account holder.
When other private banks account is good for account holder
Bangladesh has many kinds of private banks. This year average high rate private banks share is 3790 Tk. and low rate is 2500 Tk. so, private banks condition is not good than Islamic banks.
Chapter 6
Summary, Conclusion and Recommendation
Introduction:
We made our assignment on account opening. We chose four important things for our account opening. Facility provided by Islamic Bank Bangladesh Ltd. in account opening, process of account opening, important account opening, Islamic banks accounts or other private banks account which one is good for account holder are four important things of our assignment. We discussed in chapter-2 what kinds of facility provided by Islamic Bank Bangladesh Ltd. in account opening. We discussed in this chapter 2 types of account, service of Islamic Bank Bangladesh Ltd. for account holder and obligations of Islamic Bank Bangladesh Ltd. to accounts holder. Name of our third chapter is process of account opening. We discussed in this chapter fill up system of accounts opening form, submit form to the officer, take cheque book an savings book from bank, continue transaction in bank, fill up system of cheque and fill up system of savings book. Important of accounts opening four chapter of assignment. We discussed in this chapter – why accounts opening is important, important of accounts opening for a person and important of accounts opening for a sole proprietor and partnership business. Name of our fifth chapter is Islamic banks account or other private banks accounts holder. We discussed in this chapter when Islamic banks account is good for account holder, when other private banks account is good for account holder. These are main things of our assignment.
Terms & Conditions
- Governing laws, regulations and rules: These terms and conditions shall apply to such accounts and services offered by the bank to its customers, existence or new, from time to time. The terms and conditions herein shall be governed by the laws, rules and regulations of the central bank of Bangladesh. Government of Bangladesh and the bank policies and practices.
- Acceptance of rules: Any person opening an account shall be deemed to have read, understand, and accepted the terms and conditions herein governing the account.
- Information and customers: It is the bank policy that it will offer high quality services to customers not to customers who are engaged in illegal activities and activities that are harmful to the welfare of the people of the country. It is therefore necessary for the bank to obtain n information about its customers that are true and correct. The customer agrees to provide the bank such information, particulars and documents as the bank may require from time to time in connection with the customers financial condition, background and dealings with banks and business.
- Fees: The banks shall be entitled without notice to levy or impose all customary banking and other charges and expenses in respect of any account or in respect of any other facilities provided to the customers by the bank and to debit the relevant account in accordance with the banks normal procedures.
- Credit of the account: the bank acts only as the collecting agents and assumes no responsibility for the realization of any item deposited with the bank for the collection.
- Changing of items and conditions: the bank may at any time as it deems necessary add/amend/ delete the present terms and conditions. The bank may give notice of such change where it consider appropriate to the account holder by ordinary mail.
- Closure of account: the bank reserve the right to close any account or related service without giving prior notice if the conduct oh the account is unsatisfactory in the opinion of the bank. The bank shall pay to the customer all available and finally collected balance after all dues to the bank have been recovered at the time of the closure of the accounts.
- Minimum balance and interest: the minimum average monthly balance as prescribed by the bank from time to time is required to be maintained in current, savings and other accounts. The bank reserves the right to change the minimum balance requirement.
- Periodic statement and advices: the customer may be provided account statement monthly, half yearly or yearly.
- Deposits, Withdrawals and banking facilities: The bank shall meet its obligations exclusively at the branch office where the account is maintained by the customer. When the appropriate telecommunication is possible; deposits of withdrawals of money may be made at any of the branches in Bangladesh subject to the terms and conditions of the bank.
- Suspicious transactions: The bank may refuse to process any transaction of any account of the customer if the bank suspects fraud and illegality therein .The decision of the bank with regards to whether the transaction is or likely to be involved a fraud or illegality shall be final and conclusive and binding on the customer.
- Instruments deposited: The bank will not accept stale or post dated instrument for deposit. The bank may refuse to accept an instrument payable to “CASH” if the instrument of the bank is not payable to “BEARER”.
- Nominee: In the event of the death of the customer, the nominee shall receive the amount of deposit held by the bank in the customers account. In the event, nominee is a minor at the time of the customer’s death.
- Service disruption: The customers agrees that the bank will not be liable for any loss or any damage if it is unable to provide services in connection with any customer accounts due to postal, courier, electrical and telecommunications failure.
- Indemnity: The customer shall keep the bank indemnified at all time against all loss, costs, damage, expenses, claims or demands arising in any way in connection with the customers accounts.
- Acceptance of terms and conditions: We have signed the application form as a token of acceptance of the aforesaid terms and conditions.
Summary
Important of accounts opening is increasing day by day in our country. Because, people of Bangladesh are feeling interest accounts opening. Now, all industries of Bangladesh maintain their transaction by bank account. Industries of Bangladesh of businessman like cheque for payment. Accounts opening are essential for us.
Conclusion
Bank account is a contractual agreement between a bank and its customer, allowing the customer to use bank services for a fee, Accounts may be established in the name of individuals or firms. There are various types of bank account. These are Current account, Savings account and fixed account. The customers can choose the above types of account according to his or her needs. But basically for the business man current account is more appropriate because the account holder can withdraw money as many times as required. Savings account is suitable for service holder and students because it allows a significant rate interest. Fixed account is appropriate for old age people because it allows a higher rate of interest than any other account. It is not possible to make any transaction without opening an account. So it is obligatory for all to open a bank account to make transaction. But for opening an account the account holder needs to follow some direction given by the bank. It is needed to find out an in traducer for opening the account. The account holder also needs to give a passport size photo of nominee and two copy passport size photo of his or her and he or she also needs to fill up a prescribed form.
Recommendation
Bank account plays a crucial part in modern banking activities. But some sorts of modifications are needed to make the account opening procedure more flexible. The terms and conditions of an account should be made easily so that it can easily understandable for every one. The modifications are as follows,
1. Account opening procedure should be made more flexible than the existing procedure.
2. Application form should be made easily, so that every one can fill up it by himself or herself.
3. Account officer should be friendlier to the people who are willing to open a bank account.
4. Interest should be given on current account deposited balance.
5. Bank should take responsibility to make people conscious to handle their bank account more efficiently.
6. Relevant information should be provided by the bank to the customers for an account.
7. Bank should take initiative to make people motivated to open a bank account.
8. The government as well as the banking institution should come forward to arising people interest for savings and this savings should be collected through savings account.
9. Banks have to inform the government about the suspect’s customer’s balances for national interest.
10. All concerning parties should come forward foe the betterment of the account holder.
