Dear friends,

Today I will discuss about general banking section of a banking job. Generally few questions are very common in most of the viva board who are working in the general banking area of the bank. The common questions and answers are:

Question: Who can open account in a Bank?

Answer:

A person of sound mind attains the age of his majority (i.e. 18 years of age) can open an account. In other word a person/organization who is eligible to make agreement/contract can open account.

Question: What are the requirements of introducer for a new account?

Answer:

 i)            Introduction from parties/individuals who are non-customers and not known to the Bank is not acceptable for opening of an Account.

 ii)             Introductions should not emanate from un-introduced Accounts.

 iii)            Introduction of an Account by an Officer/Executive may be accepted provided that the proposed A/C holder is well known to the said Officer/Executive. 

  iv)           Opening of an Account under the introduction of an A/C holder whose A/C has become dormant as per guidelines of Instruction Circular No.64 dated 20.12.1998 shall not be acceptable.

v)            An account to be opened under the introduction of a person who maintains a satisfactorily conducted account with our Bank. Introducer’s relationship with the Bank should be considered, such as, age of the Introducer’s Account, balance history, facility provided, frequency of Accounts introduced earlier by the same person, facility provided etc. 

vi)            An account may be opened with the introduction of a person who does not maintain any account with the Branch but maintains account with our other Branch.

vii)            In exceptional cases, an account may be opened with the introduction of a person who does not maintain any account with the Branch/other Branches of the Bank, but otherwise is a person of social standing and respectability and/or is well known and reputable to the Branch Manager.

viii)            Letter of Thanks to be sent to the Introducer..

 ix)            Letter of Welcome be also issued to the new Account Holder(s).

 x)            In cases of opening of Foreign Currency or Convertible and Non-convertible Bangladeshi Taka Accounts for expatriate customer, a Letter of Introduction from the prospective Customer’s Employer in Bangladesh is required. If they are employed by a Foreign Embassy/High Commission or Foreign/International Organization which have an account relationship with the bank, a Letter of Introduction from those Employers is also required.

Question: What are the documentation requirements for opening Partnership Account in Bank?

Answer:

 i.          Two copies of passport size photograph of the Account holder(s)/person(s) who will operate the Account duly attested by the Introducer and authenticated by Authorized Officer.

ii.          Copy of Valid Trade License issued by the Municipality/City Corporation/Union Parishad attested by Authorized Officer.

iii.           Notarized copy of Partnership Deed by Notary Public.

iv.        Certified copy Partnership Deed by Registrar of Joint Stock Companies & Firms in case of Registered Firms.

v.         Partnership Account Agreement duly signed by all partners in their personal capacity and duly Resolution signed by all Partners to open the A/C.

Q. What are the documentation requirements for opening Account for Trust?

Answer:

i)        Two copies of photograph of the account holder(s) who will operate the A/C

ii)        Uptodate list of members of the Trustee Board

iii)       Certified copy of the Resolution of the Trustee Board for opening & Operation of the account

iv)       Introduction

v)        Seal(Designation wise) who will operate the Account

vi)       Nationality Certificate or photocopy of Passport(1 to 7) pages of operators , copy of National ID Card

vii)      Transaction profile

viii)     KYC form

ix)      Letter of Thanks and Letter of welcome

Question: What are the feature and requirement for operation of Trust Account?

Answer:

 Features of Trust Account

       i)        Trustee can open the account in the name of Trust or in the name of Trustees.

      ii)        Trust property to be controlled for the benefit of beneficiary.

     iii)        Violation of Trust Rules/Deed by the Trustees is called Breach of Trust.

     iv)       A/C will be operated as per delegation laid down in the Trust Deed.

     v)       No Trustee can delegates his power favg. 3rd  party.

Operation of Trust Account

       i)     A/C will be operated & opened jointly.

      ii)     Cash Transaction should be done cautiously.

     iii)     Bankers should prefer open A/C in the name of Trust.

     iv)     In case of death, lunacy, retire or change of trustee, new trustee will be appointed in writing trustees should have financial soundness.

     v)      Bankers should have vigilant eye on ‘Brach of Trust’.

     vi)     No transfer from Trust A/C to personal A/C.

    vii)     Mark “Trust A/C” on Ledger boldly.

    viii)    No borrowing will be allowed without Head Office approval.

    ix)    There should always be a clause in the mandate binding the trustees to be jointly and severally liable to the Bank for any liability incurred by them in A/C.

Question: What are the documentation requirements for opening Non-trading Account i.e Club/Society/School/College in Bank?

Answer:

          i)      Two copies of passport size photograph of the Account holder(s)/person(s) who will operate the Account duly attested by the Introducer and authenticated by Authorized Officer.

      ii)  Certified copy of the Memorandum & Articles of Association duly certified by the Chairman/President/Secretary.(If limited Company)

     iii)  Certified copy of Bye-Laws & Regulations/Constitution duly certified by the Chairman/ President/Secretary.

        iv)  Certified copy of Resolution of Management Committee/ Executive Committee for opening & operation of the Account and authorizing specific persons to operate upon the same.

       v)   Up-to-date List of Office Bearers/Governing Body/Managing Committee duly certified by the Chairman/President/Secretary.

        vi)     Introduction

       vii)     Seal(Designation wise) who will operate the Account

       viii)    Nationality Certificate or photocopy of Passport(1 to 7) pages of operators , copy of National ID Card

        ix)     Transaction profile

        x)     KYC form

        xi)    Letter of Thanks and Letter of welcome

 

Q. What are the documentation/paper requirements for opening Account of Limited Company?

Answer:

i)      Two copies of photograph of the account holder(s) who will operate the A/C

ii)      Certified copy of Memorandum of Association & Article of Association

iii)    Certificate of Incorporation

iv)    Certificate copy of  Full Board Resolution for opening & operation of the A/C

v)     List of Directors with signature (up-to-date) in Letter Head Pad.

vi)    Introduction

vii)   Seal(Designation wise) who will operate the Account

viii)  Form-XII (if old company)

ix)   Form 117 (if takes over another company)

x)    Certified copy of the certificate of Commencement of Business (Incase of Public Limited Company

xi)   Valid Trade License

xii)  Transaction profile

xiii)  KYC form

xiv) Letter of Thanks and Letter of welcome

Question: What are the requirements for opening and operation of Executors Account?

Answer:

       i)     Must produce Grant of Probate certified copy & scrutiny the same name & address of Executors.

       ii)   Identify of Executors & Registered the probate with Branch.

      iii)   List of Executors name with signature & account will be opened in Official Capacity.

     iv)    Executors power to open & operation of Banks Account.

     v)    AOF/SS Card/Photograph properly filled in.

     vi)  Not to mix with Personal Account.

    vii)  Mode of operation – jointly or all to sign.

  viii)   After death/ retirement/ lunacy new Executors will be appointed as per Probate .

Question: What are the requirements for opening and operation of Administrator Account?

Answer:

      i)   Certified copy of Letter of Administration will be obtained & registered with Branch.

     ii)   Request letter for open Bank Account.

    iii)   Account opening & operation as per Letter of Administration. Administrator can only operate upon Account.

    iv)  Mode of operation should joint in case of several Administrators.

    v)  No mixing with personal Account.

    vi) Administrators can not delegates his power to 3rd party.

Operation 

      i)     Account will be operated as per Court Order.

     ii)     Avoid Cash Transaction & should operate jointly.

     iii)    No mixing with Personal Account.

    iv)    Combining of the Company Accounts may be done.

    v)     Liquidators can not delegate his power favouring 3rd party.

    vi)    No overdraft should be allowed.

   vii)   In case of death, Lunacy, Transfer or retirement, fresh liquidators appointment letter will be taken from the Court.

Question: What are the requirements for opening and operation of Solicitor Account?

Answer:

      i)      Certified copy of professional group formation.

     ii)      Consent letter from clients.

     iii)      Identity of Solicitors.

     iv)      Solicitors Resolution / Mandate regarding the operation of Account.

     v)      No overdraft should be allowed in Solicitors Account.

    vi)      No mixing with Personal Account.

    vii)      Careful operation bankers has no right to ‘Set off’ on client Account.

Question: What are the requirements for opening and operation of Government & Local Government Account?

Answer:

    i)    Before opening of the Account any Government or semi Government or Local Body a certified copy of the STATUTE will be taken.

   ii)     Or, certified copy of any other Law/Regulations by which the body is created and governed.

   iii)    A letter of request to be taken for open Bank Account.

  iv)    Copy of Resolution is passed by the Local Authority authorising an officer to open Bank Account with Bank name & Branch.

  v)    Branch Manager specially satisfy himself as regards the provision about the dealing with the fund, opening operation of the Bank Account in the ‘Statute’.

 vi)      Name, style and nature of Account must be stated in the Statue or Resolution.

vii)     Account of Regimental Fund (Army Account) should be opened & operated as per Authority Letter from ‘The Controller or Military Account’.

viii)    Operation of Account in contravention of ‘Statue’ will not be allowed.

 ix)     Cash Transaction should be done cautiously. Pre advice should be taken in case of cheque drawings.

 x)     In case of changing Officer or Office Bearer new Authorising Letter will be taken issued by competent authority.

 xi)   Monthly statement of Account & Quarterly Balance Confirmation to be served.

Question: What are the irregularities and lapses that may happen in account opening and maintenance in Bank?

Answer:

    i)            Introduction of the A/C holders not properly obtained.

    ii)            Introducers' signature of the A/C holder not verified by an Authorized Officer.

  iii)            A/C opened obtaining expired Passport in lieu of introducer.

  iv)            Copy of Trade License not obtained in case of Proprietorship/Partnership A/Cs.

   v)            A/C opened with expired Trade License.

  vi)            A/C opened without approval of the Branch Manager/Manager Operation/ GB In-charge.

 vii)        A/C opened in the joint name but special instruction regarding operation of the A/C not authenticated by both the A/C holders.

viii)            Nominee Form not obtained.

  ix)            Father's name of the A/C holder not declared.

  x)            Occupation of the A/C holder not mentioned.

  xi)            Present Address of the A/C holder not declared/recorded in the AOF.

 xii)            Permanent Address of the A/C holder not declared/recorded in the AOF.

xiii)            Business Address of the A/C holder not declared/recorded in the AOF.

xiv)           Incomplete/Vague/fictitious  Present and/or Permanent Address of the A/C holder recorded in the AOF.

xv)            Standing Instruction Register (PB-88) not maintained and followed properly.

xvi)          A/C opened declaring only nickname instead of full name.

xvii)         Date of birth of the A/C holder not mentioned.

xviii)        Date and Time of Stop Payment Instruction not always recorded on Stop Payment instructions.

xix)        A/C holder declared more than 1(One) Nominee but percentage of share among the Nominees not declared.

xx)         Transaction Profile not obtained.

xxi)       Letter of Thanks never issued to the introducer immediately after opening of the account(s) and a copy be filed with each AOF. Therefore, auto-verification of the address was not made.

xxii)      Dormant A/Cs not identified and listed on or after 15.12.99 which should have been treated as Dormant Account.

xxiii)    Statement of Accounts/Balance Confirmation Certificate not sent on a monthly basis to the A/C holders. If those Statements/Balance Confirmation Certificates were bounced back, respective Branches might have taken appropriate measures to guard against fraud committed in the Branch using those Accounts. 

xxiv)    Not treating  Deposit A/Cs as ‘NRTA’ violating Foreign Exchange regulations holders of which are reportedly staying overseas.

xxv)     Overseas address of the A/C holders not recorded, thus those Deposit A/Cs are not treated as ‘NRTA’ A/Cs.

xxvi)      A/C opened in the name of Minor but Date of Birth and Date of Attaining majority of the Minor not recorded on AOF.

Question: What are the Guard against repetition of lapses/irregularities  in account opening and maintenance in Bank?

Answer:

   I.    An account shall be opened only after it is approved by the Branch-Incharge or by his deputy (assigned with the supervision of General Banking Department).

   II.   Photograph of the A/C holder must be signed by the A/C holder, attested by the Introducer on the back of the photograph and signature of the Introducer be verified by an Authorized Officer.

  III.  Branch shall prepare a Check-List immediately after opening an Account to ensure all necessary documentations are not left out from the AOF. If there is any pending Identification/ Reference requirement and/or Documentation requirement, ‘Flagging’ posting must be done in the Computer restricting any withdrawal from the Account till full regularisation.

 IV.   The Deposit In-charge/Manager Operation/Branch Manager shall monitor the print-out of ‘Computer Deposit Account Listing’ at least once in a weak and if any A/c is found running Nil Balance for a period of over 3(three) month, the same shall be closed giving 1(one) month’s prior notice to the Account Holder concerned. In this regard Branch also request the A/C holder to return unused cheque leaves.

  V.  The Deposit In-charge and the Branch Manager shall monitor the mode of transactions made in the A/Cs for tracing out of Suspicious Transactions.

 VI.  Branch should be particular in sending Account Statements/Balance Confirmation Certificate irrespective of all CD/SB/STD Account Holders on regular basis with proper recording in the Despatch Register except against declaration of those Holders who do not want to have it. Branch should not discontinue or be irregular in sending Statement of Accounts/Balance Confirmation Certificate. Under any circumstances any return of the same needs proper investigation.

VII.  Addresses recorded on the AOF must be verified by sending Welcome Letter to the Account Holder and Letter of Thanks to the Introducer. In sending of the above Letters, Branch must not compromise. If returned undelivered, the cause of any return of such Letters must be ascertained and the Branch must take appropriate action. Physical verification of addresses is randomly needed as and when required.

VIII. One of the key principles of the Branch Officials should be, ”Know your Customer”. They should make reasonable efforts to determine their Customers’ genuine identity, have effective procedures for verifying the bonafides of new Customers’ and establish the intended nature of the conduct of Accounts.

  IX.  The Accounts associated with irregularities/lapses as pointed out by Audit & Inspection Division or Bangladesh Bank Inspection Team should be flagged in the computer till regularization for precaution.

 X.  Branch should conduct on-the-job training to train their Officers to be made aware of their responsibilities and must be familiar with the rules and procedures related to Account Opening and Maintenance covering the broad spectrum of General Banking which will be ultimately helpful to guard against fraud and forgery.