 Customer/ account holder

A customer is a person who has some sort of

account, either deposit or current account, with the
banker.
 Rules regarding different types of customers
Individual
 Married
Pardanisheen Women Account
 Minor’s Account
 Individual
A single person of the age of majority can open account with the bank.
Such a person is deemed as an individual customer of bank. Age of
majority means he must be of 18 years or more. All person weather
literate or illiterate can open account with the bank a literate person will
use his signature while the illiterate one will use his thumb impression for
operating an account.
 Married woman
Marriage does not disqualify a woman from becoming a customer of the
bank. A woman is capable of holding and depositing any property and she
is also capable of rendering herself liable in respect of any contract . She
can open and operate a bank account with cash or cheque like any other
individual customer. The important point in this case is only that the
woman if takes loan or any other credit from bank her husband will not be
liable for her actions unless or until it was pre written in the contract.
Pardanisheen Women Account
A household women weather observing purdah or not is known as
Pardanisheen woman. These ladies are competent to open a bank
account in their own name.
If such a lady is literate and 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 impression and
even sometimes to identify her.
 Minor’s Account
According to majority act 1875 a minor is a person who has not
attained the age of 18. where a minor is under the supervision of a
guardian he will attain the age of majority after 21 years.
Problems in personal account concerning
 Insolvency
Section 122-A of the negotiable instruments act 1881 has authorized a banker to
determine the payment of a customer’s cheque with regard to his insolvency
proceedings. When a customer is declared bankrupt his assets vests into the official
assignee the bank than handover all assets of bankrupt to assignee.
 Lunacy
Section 11 of contract act debarred all persons of unsound mind from contracting
but disqualification dose not apply to contracts entered into by a lunatic during the
periods of his sanity . When a customers regains his sanity and have prof of it,
bank allow him to operate his account.
 Death of customer
It is implied that a banker can pay the cheque on a deceased customer's account as
long as he has not received an actual or constructive notice of his customer’s death.
After the confirmation of information of the death of his customer all withdrawals
from his account should be stopped and the account should be termed as
“Deceased Account” .
Accounts of specialized customer including
 Partnership Firm
The partners of a partnership firm can open account on the behalf of
firm. All the partners will sign the account opening form and
provide their addresses as well. The partnership deed which is the
basic legal document of partnership will also be attached to the
account application. This deed signifies the relationship between
different partners and their rights and responsibilities.
 Joint Stock Co.
A joint stock company is a body corporate that has a common seal
and perpetual succession. It is an artificial person so its affairs are
managed by a board of directors in the light of its constitution. The
constitution is stated in the basic legal document which are
memorandum of association and article of association.
Partnership/Firm Account including opening of account and dealing
of account in case of
 Admission of new partner
Section 31 of the partnership act 1932 provides that an incoming partner
does not become liable to the creditors of the firm for anything done
before he became a partner. The operation on the account should not be
stopped but a fresh partnership letter signed by all partners should be
obtained to cover the future operations on the account.
 Retirement
If provisions have been made in the contract the partnership can be carried
out even after the retirement of any of the partner. Otherwise partnership
can not be continued if certain provisions are not present. Section 32 of
partnership act lays down that expressly agreed a retired partner is liable
for the debts already incurred and he remains liable for the future acts of
the firm till the time he gives the notice of his retirement.
  Insolvency of the partner
In case the firm declared by court as insolvent the business vests in the
official assignee who winds up the business. All the operations are
stopped and personal account of each and every partner also become
inoperative. The joint and several liability letter signed by all partners will
provide advantage to bank.
Joint Stock Company account including formalities for
 Account opening
According to law joint stock company can open only a current account will
be operated by board of directors on behalf of company.
 Granting of loan
Companies have an implied power and certain limitations to borrow
money for the purpose of its business. When bank grants loans to the joint
stock companies it must take personal guarantee from the directors that
will make them personally liable to pay the debt.