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    Modern Banking

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    Ayisha Nasna
    Opening bank accounts requires an introduction from an existing account holder. Common bank accounts include savings accounts, current accounts, fixed deposits, and recurring deposits. Banks close accounts for reasons like the death, insolvency, or incapacity of the account holder. Procedures for closing an account involve surrendering unused checks and passbooks and settling any remaining balance.

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    Modern Banking

    Uploaded by

    Ayisha Nasna
    91 views9 pages
    Opening bank accounts requires an introduction from an existing account holder. Common bank accounts include savings accounts, current accounts, fixed deposits, and recurring deposits. Banks close accounts for reasons like the death, insolvency, or incapacity of the account holder. Procedures for closing an account involve surrendering unused checks and passbooks and settling any remaining balance.

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    Opening and closing of bank accounts and types of bank accounts

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    Modern banking

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    Opening bank accounts requires an introduction from an existing account holder. Common bank accounts include savings accounts, current accounts, fixed deposits, and recurring deposits. Banks close accounts for reasons like the death, insolvency, or incapacity of the account holder. Procedures for closing an account involve surrendering unused checks and passbooks and settling any remaining balance.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    91 views9 pages

    Modern Banking

    Uploaded by

    Ayisha Nasna
    Opening bank accounts requires an introduction from an existing account holder. Common bank accounts include savings accounts, current accounts, fixed deposits, and recurring deposits. Banks close accounts for reasons like the death, insolvency, or incapacity of the account holder. Procedures for closing an account involve surrendering unused checks and passbooks and settling any remaining balance.

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    OPENING OF BANK

    ACCOUNTS, TYPES OF
    BANK ACCOUNTS AND
    CLOSING OFBANK
    ACCOUNTS
    Ayisha Nasna
    Roll No 16
    Modern Banking
    Introduction
     Modern banking in India originated in the mid of 18th century.
    Among the first banks were the Bank of Hindustan, which was
    established in 1770 and liquidated in 1829–32; and the General
    Bank of India, established in 1786 but failed in 1791
     The largest and the oldest bank which is still in existence is the
    State Bank of India (SBI). It originated and started working as the
    Bank of Calcutta in mid-June 1806. In 1809, it was renamed as the
    Bank of Bengal. This was one of the three banks founded by a
    presidency government, the other two were the Bank of Bombay
    in 1840 and the Bank of Madras in1843. The three banks were
    merged in 1921 to form the Imperial Bank of India, which
    uponIndia's independence, became the State Bank of India in
    1955. For many years, the presidency banks had acted as quasi-
    central banks, as did their successors, until the ReserveBank of
    India was established in 1935, under the Reserve Bank of India
    Act, 1934.
     The Indian banking sector is broadly classified into
    scheduled and non-scheduled banks. The scheduled banks
    are those included under the 2nd Schedule of the Reserve
    Bank of IndiaAct, 1934. The scheduled banks are further
    classified into: nationalised banks; State Bank ofIndia and
    its associates; Regional Rural Banks (RRBs); foreign
    banks; and other Indian private sector banks.The SBI has
    merged its Associate banks into itself to create the largest
    Bank inIndia on 1 April 2017. With this merger SBI has a
    global ranking of 236 on Fortune 500 index.The term
    commercial banks refers to both scheduled and non-
    scheduled commercial banks regulated under the Banking
    Regulation Act, 1949.
     A bank is a financial institution that provides a wide range
    of financial services to individuals, businesses, and
    governments. These services typically include accepting
    deposits, making loans, facilitating payments, and offering
    various financial products such as savings accounts,
    checking accounts, and credit cards. Banks play a crucial
    role in the economy by facilitating the flow of money and
    capital, as well as providing a safe place for individuals to
    Opening of a Bank Account
     Opening Savings Bank Account- Normally, a banker will not open
    an account in favour of a stranger. Any person who wishes to open a
    savings account has to be introduced by another savings account
    holder of the same branch. Even a minor is allowed to open a
    saving account.
     Opening Current Account - In the case of current account, it
    cannot be opened by any person unless he is introduced by another
    current account holder of the branch. The current account holder
    has to give a letter of introduction in favour of the person intending
    to open the current account.Current account can also be opened
    when the employee of the bank gives a letter of introduction about
    the person intending to open the current account. A third type of
    letter of introduction can be given by a well reputed person known
    to the banker.
     Opening Fixed Deposit Account and Recurring Deposit – For
    opening a fixed deposit accounts , the banker does not impose any
    condition. But he normally accepts fixed deposits from known
    persons and the fixed deposit account is opened only by deposit
    cash or in case of cheques only after realization of cheques. The
    same rule applies for recurring deposit also.
    Types of bank accounts
     Savings Account
     Current Account
     Recurring Deposit Account
     Fixed Deposit Account
     DEMAT Account
     NRI Account
    CLOSING OF BANK ACCOUNTS
     Similar to the opening of account, banker has to
    adopt certain procedures while closing of
    account of a customer. At the time of closing an
    account, the banker should ask the customer to
    surrender the unused cheque along with the
    passbook.
     When a customer expresses his willingness to
    close the account in writing, the banker should
    settle his account. Before doing so, the banker
    has to arrive at the closing balance which maybe
    the credit or debit of the customer. When the
    balance is to the credit of the customer, the
    banker to pay the amount either in person or
    send the same by a cheque to the address of
    customer.
    A bank will close the account of the
    customer under the following
    conditions

     (1) Death of customer


     (2) Insolvency of the customer
     (3) When customer becomes insane
     (4) Garnishee order
     (5) Withdrawal of power attorney
     (6) When the partnership firm is
    dissolved
     (7) In case of company, on winding up
     (8) When the customer assigns his entire
    credit balance
     (9) In the case of associations and
    institutions, on the passing of resolution
    as per theBye-laws.
    Conclusion
     In Conclusion, banking holds a crucial
    role in our day-to-day life. We must
    adhere to the banking system as
    responsible citizens. The banking
    system acts as a crucial base for the
    financial system as well as the entire
    economic system of the country. It
    provides a base to the market and the
    companies. In a crux, we can say that it
    is the source of channeling the finance
    by the people of the country.
    Thank You

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