Savings account as the very name suggests are intended for saving for the future.
This is the most common type of account which caters to the needs of vast section
of people in the society. These accounts promote saving habit of people. This account
is form of demand deposit account.
Who can open a Savings Account
- Any person competent to contract and satisfactorily introduced to the Bank may open
an account in his/her own name. He/She may not open more than one such account.
Accounts may be opened in the names of two or more persons and may be made payable
- any one or more of them.
- any one or more of the survivors.
- either or anyone one or more of them or the survivors jointly, or survivor.
- 'former or survivor' or 'either or survivor', subject to the condition that the
second (first in the case of either or survior) named account holder will be entitled
to the balance lying in the account only on the death of the former (either in the
case of either or survivor) account holder.
- A savings bank account may be opened in the single name of a minor and may be operated
upon by minor, if he/she has completed the age of 10 years and is able to read and
write. Maximum balance to the credit of such account should not exceed at any time
Rs. 1,00,000/-. For accounts of minors above 14 years, there is no limit to maximum
- A savings bank account may be opened in the name of minor jointly with his/her natural
guardian i.e. father or mother or both.
- An account can be opened in the name of club, society, provident fund and trust,
provided they are duly constituted and subject to satisfaction of conditions stipulated
by Reserve Bank of India/the bank from time to time.
- As per RBI directive and subject to their prior approval, accounts can be opened
in the names of specified institutions/agencies, if they are registered under the
Societies Registration Act or Companies exempted from using the word 'Ltd.' or 'Pvt.
Ltd.' as part of their names as per the Companies Act 1956 and those working for
socially desirable purposes and serving weaker sections of the society and those
exempted from paying Income tax under Income Tax Act 1961.
- Further as per RBI directives, Savings bank account can also be opened in the name
of Government Departments/bodies/agencies in respect of grants/subsidies released
for implementation of various programmes/schemes sponsored by Central/State Government.
Bank should also keep on their record a copy of the authorization issued by the
respective government departments.
How to open a Savings Bank Account
- Application to open an account must be made in Bank's prescribed account opening
form. It should be made, in person, in the presence of Bank's authorized officer
and the applicant must fill in all the columnsof the application form. Each applican
will be required to sign a declaration to the effect that he has read and accepted
the Savings Bank Rules.
- Illiterate depositer, unable to write, must attend in person and affix his/her thump
impression on the account opening form in the presence of an approved witness, who
is known both to the bank and the applicant. Such illiterate depositor should lodge
his/her recent photograph with the bank, duly attested by a person known to the
Bank. Thus, he/she need not have his/her thumb impression attested by a witness
evey time he/she withdraws money from the account. It will suffice, if he/she affixes
his/her thump impression in the presence of an officer of the Bank.
- At the discretion of the Bank, illiterate persons are allowed to open accounts jointly
with persons who are literate or iliterate and closely related to them, to be operated
- Cheque book facility will be extended in the single or joint savings bank account
of the illiterate depositors.
- Every account holder should submit copies of his/her recent passport size photograph
at the time of opening an account.
- The account is to be introduced by an exsisting account holder having satisfactorily
conducted account with the Bank. Whenever a deposit account is opened and introduction
is taken from an exsisting account holder; the following condition must be fullu
- The account of the introducer should be minimum six months and
- The account of the introducer should have been satisfactorily and actively conducted.
- The account of the introducer should be KYC compliant. It means the proposed introducer
has compiled with the KYC requirement in respect of the account maintained with
Any of the following documents bearing photograph of the holder is also accepted
for the purpose of identification:
- Valid Passport
- PAN Card
- Driving Licence
- Voters ID Card
- Defence ID Card
- Identity Card of employees of central/State GOvt. & Public Sector Undertakings
- Senior Citizen's Card
In the event of withrawl of introduction by the introducer, the Bank shall be entitled
at its sole discretion to suspend the operation in the account immediately, without
prior intimation to the depositor abd it will be in order for the Bank to return/dishonour
the cheques, if any, drawn on account, closing of account, without being liable
for the same.
Collection of Service Charges
In case the account is closed before expiry of six months from the date of opening
of the account service charges as specified by the head office shall be levied and
credited to commission account.
Closure of Joint Account
In the case of joint accounts, all the joint account holders should sign the request
letter for slosing the account. In respect od a joint account where one of the joint
account holder expires, the account can be closed by obtaining discharge for the
balance amount in the account form the surviving depositors. If one of the joint
surviving deposits is a minor or wehre the only surviving depositer is a minor,
such an account can be closed by obtaining a discharge from the guardian on behalf
of the minor.