A OPENING ACCOUNTS OF VARIOUS TYPES OF CUSTOMERS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
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Free sample — 8 of 66 rapid-fire Q&A cards.
What is the first step a bank must follow before opening any type of account?
The bank must complete the Know Your Customer (KYC) process, which includes verifying the identity and address of the prospective customer using Officially Valid Documents (OVDs).
What is the minimum age for a minor to independently operate a bank account in India?
Minors above 10 years can operate accounts independently.
Which document is considered an Officially Valid Document (OVD) under RBI KYC norms?
OVDs include Aadhaar, Passport, Voter ID card, Driving Licence, NREGA Job Card, and the letter issued by the National Population Register.
What is the term for a joint account mandate where any one holder can operate the account?
'Either or Survivor' or 'Anyone or Survivor' mandate.
What is a 'Basic Savings Bank Deposit Account' (BSBDA) and who can open it?
BSBDA is a no-frills, zero-balance savings account available to any individual, designed to promote financial inclusion; it allows limited transactions and requires simplified KYC.
What is the maximum number of joint account holders allowed by most Indian banks?
Most banks allow a maximum of four joint account holders.
Can a minor open a bank account independently in India?
A minor below 10 years can open an account only through a guardian, but a minor above 10 years may open and operate a savings account independently at the bank's discretion.
What document proves the existence of a Hindu Undivided Family for banking purposes?
HUF declaration deed signed by Karta and all coparceners.
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