This document summarizes the key policies and procedures for bank accounts. It discusses opening new accounts, including obtaining proper identification and signatures. It also covers specific account types like minor accounts, married women accounts, and joint husband-wife accounts. The document outlines the procedures for handling special situations like customer death, lunacy, insolvency, or bankruptcy. It emphasizes the importance of verifying customer information, stopping account access in certain situations, and obtaining proper authorization for payments and changes.

1. Accounts of Customers

2. Chapter outlines
1. Introduction and preliminary investigation
2. Specimen signature card
3. Married women
4. Pardanashin women
5. Minor account
6. Problems with individual account
7. Death of customer
8. Husband and wife joint account

3. introduction
 The opening the account is the establishment of
customer and bank relation. by opining an
account at the bank a person become a
'customer''
 Bank should obtain the proper information about
his applicant.
 Before opening an account for his customers who
is not already known to the banker.
 He should get proper inquires about his applicant

4. Introduction and preliminary
investigation
 Before a banker opens a new an account the
bank should determine the integrity,
respectability, occupation, and nature of
business.
 Introductory reference and introduction of
applicant at the time of opining account.

5. The information is necessary because of
following reasons
 1 Avoid frauds
 2 Safeguard against unintended
overdraft
 3 Negligence
 4 Inquiries about client

6. Avoid frauds
 If a bank does not make the necessary
inquires about the client, may enable
dishonest persons to possess cheque-books
for fraudulent purpose.
 If any such person happened to be an
undercharge bankrupt, the banker might be
placed in a awkward position for not allowing
to open account in a bank

7. Safeguard against unintended
overdraft
 Sometimes due to a mistake an account may be
given an overdraft. For instance, the ledger-
keeper misread the balance of an account honors
a cheque for amount larger than balance. similarly
credit entry belonging to a customer may be made
by mistake in a another customer account. In such
situation the express amount withdraw by the
customer can only be realized if the customer is
respectable person.

8. Negligence
 When a banker does not make necessary
investigation, he may deprived of the legal
protection provided by banker.

9. Inquiries about client
 A banker has a business obligation to
response to inquiries from the banks. About
the customer financial position.
 Though the banker gives only general idea
about the financial standing of his customer

10. 2 Specimen signature
 when an account is open with a bank the
customer gives the bank a specimen of form of
signature which would appear on all his cheques
to express his authority for payment. This is
generally on card, specially designed for the
purpose. It also contain
 Name,
 Account number
 Three or four signature.

11. if signature is other than English or Dari
 If a customer signs in a language other than
English or local language, than he have to fill
the vernacular form, the vernacular form is
obtained because the bank officer are not
used to verify the signature other than
English.

12. Illiterate person
 Banker must take obtain 4 passport size photo, most
recent one. one photo is paste on specimen card .one
on account opening form, one photo on cheque book.
 Instead of specimen signature card , both right hand
and left hand thumb impression from male and female.
 An illiterate person must operate his account personally
because of signature.
 An illiterate account holder advise not to issue
cheques payable to other person, for cash or clearing

13. 3 Married women
 Married women not disqualify a women from
becoming a customer of a bank. Because a
married women is capable of holding and
disposing any property, she is also capable of
rendering herself liable in respect of any contract.
If married women apply for loan, adequate
securities belonging to her should be taken into
consideration, because the bank will give the loan
according her assets not her husband assets.

14. 4 Pardanashin women
 A household women, whether observe purdah or not
known as Pardanashin woman. These ladies are
competent to open a bank account in their own name.
if such a lady is literate and can sign her name, there is
no difficulty in opening an account; but in case of an
illiterate woman, it is difficult due to the problem of
verification of her thumb impressions and sometimes
even to identify her. Therefore, the bankers generally
avoid opening such an account and suggest the
opening of a joint account with some literate person as
an alternative.

15. 5. Minor's Account
 A person is regarded as a minor until he has attained the age of
18 years. If a competent court of law appoints a guardian of his
person or property before eighteenth year, the majority extends
to the age of 21 years.
 Section 11 of the Contract Act, 1872, has declared a minor
incompetent to enter into contract, therefore, any contract with a
minor is avoid . However, in 1925 the Bombay High Court opined
that if a competent person has made a contract for the benefit of
a minor, it is a valid contract: and the minor can enforce it. The
contract Act, 1872 lays down that if a loan is given for the
necessities of the life of a minor, it can be recovered from his
property, but he is not liable personally.

16. 5. Minor's Account
 Bankers can allow the opening and operation
of an account by a minor also when he is
physically grown up enough not to appear as
minor and can sign is a form handwriting. But
these are saving or fixed/ term deposed
account only. Where no overdraft could be
allowed.
 He cannot be liable for any debts of the
partnerships incurred before the he attains 18
years of age

17. Problems in personal account
 Death of the customer
 Lunacy of the customer
 Insolvency of the customer
 Stop-payment in a joint account

18. Death of the customer
 A banker cannot make payment on the cheque after the
notice of the customers death has been received by
him. It is implied that can pay the cheque on a
deceased customer account only.
 The banker must confirm the notice received of his
customer by him. Because the according sir John
Paget
“ mere rumor would be sufficient for the bank to act upon
for instance an announcement in a responsible
newspaper”

19. Death of the customer
 After the confirmation of information of the death of his
customer, all the withdrawals from his account should
be stopped and account should be termed as
“Deceased Account” while credit into account should be
allowed, cheque presented for the payment should be
returned with the objection “ customer deceased”
 A credit balance up to generally 100,000 consider small
amount. Therefore, it can be paid legal heirs with the
witness by two good customer. More than amount
certificate of competent court of law is required, head
office will approve

20. Lunacy of customer
 Contract Act 1872,
all person of unsound of mind are disqualified to
open account in a bank. Therefore bank should
not open account for unsound mind.
may be during relation with bank he become
sanity. As soon as banker comes to know that my
customer mad, he will stop all debit operation on
the account after confirming the information. The
entire credit balance of the customer should be
placed at the disposal of “manager in lunacy’
appointed by court under lunacy Act 1912

21. Lunacy of customer
 When a customer regains his soundness of
mind and his discharge from lunatic asylum,
the bank should allow him to operate the
account after he produce certificate of sanity
from law. which will attested from two medical
specialist of psychology.

22. Insolvency of customer
 According to Negotiable Act 1881
banker authorized according that act,
determined the payment of the customers
cheque with regard to his insolvency
proceeding. When a customer adjudicated a
bankrupt, whether on his own petition or on the
creditors, his property vests into the official
assignee all assets, and banker should refuse to
honor the cheque.

23. Insolvency of customer
 The baker must handover to the assignee all
assets of the bank held him which he is not
entitled to retain. If the bank does not do so
he become guilty of contempt of court

24. Joint account of husband and
wife
 The instruction on operation of joint account is
very helpful when joint account opened a husband
and wife, because it indicate the intention of the
deceased for the payment in the event of death of
any of them.
 It clearly stated that if joint account opened was
opened with intention of making a provision to the
wife in case untimely death of husband, the widow
received the money

25. Bankrupt of joint account holder
 When the bank comes to know of the
bankruptcy of one or more of the joint account
holders, the operation on the account should
be immediately stopped. Withdraws will be
responsibility of solvent customer.

26. Stop- payment in a joint account
 Anyone joint account holder may stop
payment of the cheque drawn by any others.,
but the removal of the stop-payment should
be signed by all joint account holders. If the
joint account holders wish to delegate their
authority on the account to an outside party,
all the joint parties should sign this authority.