How to get a Savings Bank Account - I

Let me begin a planned long series of discussions on various banking products and services with the vast community of bank customers across the country with savings bank account. My intention is to bring to your notice some points which to my mind should be known by all users.
Today, I propose to examine several features of a savings bank account some of which are basic, elementary whereas some are comparatively uncommon. Due to the length of the subject a subset of topics will be dealt with in this post and the remaining in next parts.

Opening a savings bank account

A savings bank account, in a way is like the root of a tree. All other accounts in fact issue forth as its branches. Usually, money is transferred to fixed deposit or recurring deposit from this account, interests credited into it and on maturity the principal with interest come back to it. Similarly, while you take a loan, the margin money (your contribution) is taken from your savings account whereas periodical installments are also recovered from it. It is only in the fitness of things that you duly complied with bank’s rules and regulations at the time of opening the account itself. 
Remember that once you have opened a savings account, you are eligible to deposit every cheque, draft or pay order drawn in your name into this account. The bank then collects these instruments from respective banks and credit to your account.

Introduction

Your bank would like to ensure itself about your identity. Remember after your account is opened, your bank is committed to collect all cheques, drafts etc on your behalf. If later on a dispute arises as to the ownership of these instruments, your bank has to prove to authorities concerned that it had taken due care in opening the account. It does in any one or both of the two ways:
(a) It insists that you are introduced to the bank formally by any of its existing customers, staff or a local person of repute;
(b) It insists that you submit at least two standard documents – one, proving your identity and another, evidencing your address;
Practices vary amongst banks as regards ‘introduction’ and the ‘documents’ that they would accept as proof of identity and address. Some banks, particularly belonging to the private sector, may consider two or even one of these specified documents e.g., Voter I Card (serving dual purposes) as adequate and dispense with introduction by another customer. 
Practice also varies across regions. In some places banks may accept ration cards or even rent / lease agreement as sufficient address proof. At the end of the day, you have to address the bank’s rules so that it can satisfy itself about your identity and the correctness of your address.
Some of the common documents usually accepted by the banks are furnished in the table. However, you may check with the bank concerned to avoid any last minute inconvenience:

Document accepted as ID proof	Document accepted as address proof
Passport	Passport
Driving license	Driving license
PAN Card	Voter I card
Employee I Card issued by Government department	Electricity bill
Voter I Card	Ration Card
Photo I card issued by Defence	Telephone Bill (BSNL/ MTNL)
Valid photo pension book	Recent Credit Card statement
Valid freedom fighter's pass	Employer’s certificate on letter head

You need to submit:
(a) copies of two documents one for ID proof and another for address proof;
(b)  two copies of recent passport size photographs
Please self attest the copies of the two documents. Also carry the original for verification by the bank officials. Those would be returned to you.

Documents to sign

You have to sign an account opening form and append your specimen signatures either on the form or separate specimen signature cards as per concerned bank’s system.
Remember the specimen signature well because you have to sign exactly the same way in future when signing cheques or issuing any operational instructions to the bank.

Nature of relationship with the bank

The account opening form constitutes the contract between you and the bank. The legal position between you and your bank is that of creditor and debtor respectively. The bank has a further obligation of making the payment of your cheque if properly drawn and presented upon it.

Joint account

There is theoretically no restrictions on the number of persons who can open a savings account jointly. However, it is necessary that savings account is not opened and used for business purposes. Usually, two or at the max three to four persons of same family, social or professional group etc open joint accounts.
Take care to properly mention the ‘repayment condition’ and ‘operational condition’ in a joint account.
Repayment condition – This would apply at the time of closing the account. You can give specific instructions about to whom the balance standing to the credit at that time ought to be paid. Examples of options are as below:
(a) Jointly to all
(b) Either or survivor (in case the account is held by two persons)
(c) Any one of us (in case the account is held by more than two persons)
(d) No 1 only, or No 2 only or No 3 only
(e) No 1 only or survivors, etc


In the next post, operation of the SB account, nominations, minimum balance, cheque books, ATM / Debit cards etc will be dealt with.