bcom iii btp m 2

8/7/2019 BCom III BTP M 2

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GOOD MORNING

Ignorance is not a curse, but itturns out to be a great tragedy if

the ignorant are so ignorant that

they do not know that they are

ignorant.


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BANKER

ASA

BORROWER

MODULE II


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OPENING OF A BANK ACCOUNT

:Steps or Procedureto be followed by the Banker(Precautions):

1. Application in theprescribed format

2. Obtaining introduction3. Specimen signatures

4. Receiving initial deposit

5. Obtaining mandate6. Opening customers accountin the ledger

7. Issuing important books


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TYPES OF BANK ACCOUNT

Fixed DepositAccount

Savings Bank Account

CurrentAccount

Recurring DepositAccount


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Fixed Deposit Account

Adeposit of a fixedsum of money for a fixedperiod at a fixed rate ofinterest.

Banks receivedeposits for a definiteperiodvaries from 15daysto 5 years & above.


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FEATURES OF FDA:

Itis also known as Term Deposits or TimeDeposits.

Minimum amount. Minimum period.

No introduction.

Rate ofinterest. No cheque-book facility.


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Loan againstFD.

FD in the joint names.

Repayment ofFD on duedate.

Assignment ofFD account.


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STEPS OR PROCEDURE:

Application form

Specimen signature

Receiving deposit

Opening the account

Issuing FDR


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FDR

FDR stands forFixed Deposit Receipt.

When a banker acceptsthe amount ofthe

FD, heissues a receipt calledFDR. It containsthe name and address ofthe

depositor, amount, timeperiod, rate of

interest, date ofdeposit & maturity. It also containsthe words Not Negotiable

acrossits face.


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On the backside ofthe receipt, it contains,

rules and regulations, columns forrecording theperiodical interestetc.

Thus,

FDR is an acknowledgement ofthe receipt

ofthedeposit given by the bankerunder

certain terms and conditions andissuedto

thedepositor.


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Importance of FDR

Acknowledgement of receipt Terms andConditions

Presenting theFDR (Maturity date)

Offered as a security (Loan)

Stamp Duty dose not required

Not Negotiable Instrument


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IMPORTANT POINTS:

Transferability ofFDR

Loss ofFDR

Donatio MortisCausa

FDR in the name of a Minor

Change of Namesin theFDR


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Saving Bank Account

SB Account wereintroduced forthe firsttime

by commercial banksin England.

The main objective ofintroducing theSB

accountisto cultivate orencouragepeopleto savepart oftheir regularincome for future

contingencies.


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Itis an account whichis generally opened

by thepeople of lower and middleincome

groups who wishto save a part oftheirincome fortheir future needs andearn

certain income on theirsavings.


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In orderto open an SB account , the

prospective customerhasto fill in anaccount opening form.

The banker generally obtainsintroduction oftheperson opening such an account.

The money isdeposited by the customer byfilling in thepay-in-slip.


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FEATURES OFSB Account

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