SPECIAL TYPES OF CUSTOMERS

MINOR
Section 3 of the Indian Majority Act, 1875 A person under the age of 18
years is called a Minor.

If a guardian is appointed by the court the age of majority is 21 years. Here

the name of minor is wards.

Natural Guardianship of minor

Savings bank account can be opened by minor, represented by his natural

guardian, Here ,natural guardian is father
GUARDIANSHIP SUMMARY
CONTD..
 BANKING NORMS FOR MINORS
There are set of basic rules that are
followed by banks in India when it
comes to childrens banking
account.

Minor would make a much

weighed word in legal terms instead
of children and an account here
would mean savings account.

An account can be opened in the

name of a minor (person whose age
is less than 18 years) by his/her
parent or guardian who is the joint
holder of the account.
 BANKING NORMS FOR MINORS

The account that is held jointly with the parent or guardian can be operated
only by this parent or the guardian and not the minor.

A minor who is more than 10 years old can open and also operate an account
by himself/herself. In this case the guardian/parent also will have the right to
operate this account of the minor.

Two minors who are over 10 years of age can hold an account jointly.
 General Features of childrens bank
account:-
A guardian or a parent can open an account for a minor and this account
can either be jointly held or can be an independent account. For an
independent account the minor has to be more than 10 years of age.

The parent/guardian can choose to get bank statements on regular basis.

This will be helpful for a parent/guardian to monitor the childs account.
 CONTD.
The parent/guardian also has the option to give instructions to the bank to
transfer certain specified sum of money into the childs account on a regular
basis.

Banks that provide these accounts also provide all basic facilities that a savings
account has. This includes debit card, pass book and some banks even provide
cheque books for minors.

Few banks also provide additional insurance covers to the life of

parent/guardian. Here a certain sum is assured to the minor on the death
(under specific conditions) of the parent/guardian. There are various types of
deposit schemes for minors offered by other banks.
 Eligibility and conditions:-
A minors account can be opened in the name of or by a person who is less
than 18 years old. There are specified situations where the age is extended
to 21 as per the courts declaration. In this case the minors guardian will be
opening the account for the minor. Banks may have specific lower limits of
age for entry into this account.

The guardian/parent should hold an account with the bank where he/she
wants to open an account for the minor.

Usage of the money from the account and minimum amount that has to be
credited into the account will be as per the basic rules set by individual
banks. Penalty will be charged if the guardian/parent is not able to maintain
minimum balance in the minors account.

Once the account holder (child/minor) turns into major depending on the
bank there will be few verifications made (signature or photograph).
 Documents required for Kids bank
account:-
The basic KYC norms will be followed while opening an account for a minor
in the bank.

Document for proof of age and address of the minor

Document for the proof of relationship between the parent/guardian and

the applicant minor

Proof of identity of the minor

Photographs of minor
 MARRIED WOMEN
A married woman can enter into contract
and bind her personal (separate) estate.

A banker may, therefore, open an account

in the name of a married woman.

The bank should observe extra

precautions regarding sanction of
overdraft/loan to a married women
because it will have no remedy against her
if she does not have any personal estate.
NOTE: the husband will not be liable for
any debt of his wife except the following
cases:
where the loan is taken with
his consent or where she
acts as the agent of her
husband.

where the loan has taken for the purchase of necessities

which the husband has failed to provide.
ILLETRATE PERSONS
 ILLETRATE PERSONS
An illiterate person means a person who cant sign his name.

The Bank may at its discretion open deposit accounts other than Current Accounts
of illiterate person.

The account of such person may be opened provided he/she calls on the Bank
personally along with a witness who is known to both the depositor and the Bank.

Normally, no cheque book facility is provided for such Savings Bank Account.

At the time of withdrawal/ repayment of deposit amount and/or interest, the

account holder should affix his / her thumb impression or mark in the presence of
the authorized officer who should verify the identity of the person.

The Bank will explain the need for proper care and safe keeping of the passbook
etc. given to the account holder.

The Bank official shall explain the terms and conditions governing the account to
the illiterate.
 TRUSTEE
Section 3, of the Indian Trustees Act, 1882 defines trust as it is a
relationship which arises where a person holds a property for the
benefit of certain other persons or for some objects allowed by law.

A banker must be cautions in opening/operating a trust account as the

trustees are responsible for public money

If there are several trustees and account is opened for two or more
trustees the banker should obtain a mandate signed by all the trustees
as to how cheques and bills are to be signed and endorsed.

The bank must not knowingly permit the

misuse of trust fund (e.g. fraudulent transfer of
trust fund by the trustees to his personal
account).
PRECAUTIONARY Banker should examine
trust deed appointing the
MEASURES person as a trustee

Inspect letter of
administration.

Name of trustees, their

powers, functions and the
property vested by the
trustee.
LUNATICS
 LUNATICS
He is a person of unsound mind
,incompetent to enter into a valid
contract ,because he does not know
what is right and what is wrong.

So, the bankers should not open an

account in the name of a person of
unsound mind.

If a customer may become lunatic after

opening an account with the bank.
However, a banker will not be liable if it
honours the cheques or bill of an
account holder unless it comes to know
of his lunacy at the time of honouring
cheque/bill.
 CONTD
Where a customer becomes insane and the
banker comes to know of it, he must stop
all the operations on the account
immediately.

However, the banker should carefully verify

the information about customers lunacy.

Sometimes, the court may issue a lunacy

order and the banker must follow this
order.

Before resuming operations on the

account, the banker must obtain a
certificate from two medical officers
certifying his mental soundness or get an
order of the court to that effect.
 CLUBS ,SOCIETIES AND CHARITABLE
INSTITUTIONS
Render service to the
public.

These are registered

under societies
registration act or the
Indian companies act or
the cooperative
societies act or Indian
trust act.
PRECAUTIONARY MEASURES
CONTD
.
JOINT STOCK COMPANIES
JOINT STOCK COMPANIES
 CONTD..
The banker must examine the certificate of incorporation
before opening an account.

Banker ask the resolution of the board of directors appointing

him the banker of the company .

He should be an authorized person to conduct bank

transactions ,to sign cheques ,to accept bill of exchange , to
entrust valuables for safe custody.

Banker must also examine the certificate of commencement of

business.