Current Account Rules
Current Account rules
Current Accounts are designed to suit to the daily business requirements of Entrepreneurs in terms of higher number of transactions, multi locational payments and deposits, cash management facilities, local and upcountry cheque collection facilities , Net Banking facilities etc.
1) Who can open a Current Account at ESAF Bank
Current Account with ESAF bank can be opened by :
(ii) Entities like Sole proprietorship, Partnership, Limited Liability partnerships, Companies, etc.
(i)Individual(s) : Any person competent to contract and KYC complied to the satisfaction of the Bank may open an account in his/her own name. .Accounts may be opened in Individual name or in the names of two or more persons and may be made payable to
(b)Any one or more of them.
(c) Any one or more of the survivors.
(d) Either or anyone or more of them or the survivors jointly, or survivor.
(e) 'former or survivor' or 'latter or survivor', subject to the condition that the second (first in the case of latter or survivor) named accountholder will be entitled to the balance lying in the account only on the death of the former (latter in the case of latter or survivor) accountholder.(ii) Entities : Accounts can be opened for sole proprietorship firms, partnership firms, private limited and public limited companies, Joint Hindu families, trusts, clubs, associates ,societies etc. satisfactorily introduced to the Bank and on fulfilling the laid down KYC requirements and tendering required credentials.
2) How to open a Current Account
(i) Application to open an account must be made in Bank's prescribed account opening form. All signatories are required to come in person to the bank to sign the account opening form. Required KYC documents and credentials depending upon the type of constitution of the prospective accountholder are to be submitted to the bank.
(ii) Each applicant will be required to sign a declaration to the effect that he has read and accepted Current Account Rules. A copy of the rules is available with the Branch Manager/ displayed on the Web Site of the Bank www.esafbank.com
(i) A recent passport size photograph of every accountholder, proprietor / partners / Directors of the company / office-bearers / trustees and other officials authorized to operate upon the account, is required to be given to the bank.
(ii) Accounts will be permitted to open after proper verification of the profile of the customer, physical verification of the business unit, business activities etc.
(iii) (iv) While opening a Current account, the applicant will have to submit a declaration that he/she/the entity does not enjoy any credit facility with any other Bank, or submit a No Objection Certificate from the existing banker in case he/she/the entity is enjoying any Fund based/Non fund based credit facility.
3. Minimum Average Balances :
The minimum average amount that should be maintained in the account will be as below (subject to periodic review) for different variants of Current Account , which will be calculated on a quarterly basis:
Current Account- Basic
Current Account - Classic
Current Account - Premium
Current Account – Diamond
4) Statement of Account
(i) At the time of opening the account, a statement of account will be provided to the customer once the account is activated
(ii) Subsequently, computer generated statement of account showing a record of all transactions (credits and debits ) will be issued on half yearly basis,(OR monthly/ quarterly basis on specific request of the customer ). Once a statement of account being received by a customer the entries therein should be carefully examined and error or omission,if any, should immediately be brought to the notice of the Bank, otherwise rendering of the statement of the Account to the customer will be treated as an acknowledgement of its correctness to date. The Bank will not be responsible for any loss arising from the negligence of customer in taking above precautions.
(iii) It should be understood that if at all any entries pertaining to the uncleared/un realized balances are appearing on the statement , , such amounts may not be available for drawing, until the proceeds have been realized by the Bank.
(i) Credits to the account can be made in the form Cash, Cheques, Transfers, NEFT/RTGS, etc.
(ii)All credits made in the account should be accompanied by a paying-in-slip, which is common for Cash as well as cheque deposits.
(iii) Cheques received after specified time, will be cleared on the next working day.
6) Withdrawals by Cheque
(I) Withdrawal is allowed only through the printed cheque leaves provided by the Bank. One cheque book will be provided at the time of opening of the account and the printed Requisition Form available in the cheque book should be used for subsequent requirements.
To prevent forgeries, frauds, etc., constituents are particularly requested to:
(ii) Keep the cheque book under lock and key.
(iii) Fill in the body of cheque only before delivery.
(iv) Fill in the amount in words, as near as possible, to the words "Rupees" and the amount in figures, as near as possible, to "Rs.".
(v) The writing of cheque should be clear and distinct and cheques must be drawn in such a way as to prevent any alteration or addition after issue.
(vi) The amount in cheques must be stated both in words and figures.
(vii) Cheques with alterations , will not be accepted for collection/payment . (viii) Payments of cheques on which the signature does not exactly correspond with that on record at the Bank will be refused.
(ix) The Bank will ask for proper identification of the presenter before making cash payments of order cheques.
(x) Post dated Cheques i.e. bearing a date subsequent to the date of presentation and Stale Cheques ie.cheques bearing date over three months prior to the date of presentation will be refused for payment.
(xi) Constituents are requested to cross all cheques intended for collection before depositing them into their accounts.
(xii) The Bank will accept instructions in writing or through specific options available internet/mobile banking channels from the drawer of a cheque to stop the payment.
(xiii) Issue of cheques without sufficient funds in the account may attract penalty under Section 138 of N.I.Act.
(xiv) Cheques must not be issued without providing funds in the account. If, cheques are presented without sufficient funds to meet them, payment will be refused and the cheque returned. Repeated disregard of these instructions will entail the summarily closing of the account.
(xv) Account can be overdrawn only after previous arrangement with the Bank, subject to the discretion of the Bank. (xvi) To safeguard cheques from being collected by unauthorized persons,
i) A/c payee cheques will be collected/paid only to the credit of the payee’s account.
ii) cheque payable to any entity,like firm , limited company, Trust, Society etc.,even though "Bearer" will not be accepted for payment/ credit of a personal account.
No interest is payable on credit balance in current account, including those of Bank's staff members as per RBI directives. However, simple interest at the rate applicable to Savings Bank account, shall be paid on credit balance of deceased individual accountholders, from the date of his/her death till the date of payment to the legal heirs. In the case of death of a sole proprietor, interest will similarly be paid in the account of the sole proprietary firm.
8) Standing Instructions
Bank accepts Standing Instructions from accountholders for periodic remittances of loan repayment, Insurance premium etc. The charges as given in service charges section will be levied. If the transaction involves another bank ,then remittance will be made by way of NACH mandate, levying prescribed charges. Charges for inability to carry out standing instructions due to insufficient balance in the account shall be levied as given in service charges section.
9) Closing of an Account
(I) The accountholder must give in writing his/her intention to close the account. In case of partnership firm and joint account, all the partners and all the accountholders should sign the letter of request, respectively. In case of limited companies, a board resolution authorizing closure of the account is required.
(ii) The unused cheque leaves, Debit Cards, if any, in the possession of the depositor should be returned to the Bank.
(iv) (iii) All the standing instructions , NACH mandate etc will automatically stand cancelled on closure of the account.Bank shall recover charges as given in service charges section if an account is closed within a year.
(v) Closure will not be allowed , if any Lien, attachment , overdues etc exist in any of the account/relationship of the entity.
10 ) Nomination Facility
The individual accountholder/s and Sole Proprietorship concern will have the facility to make, change or cancel nominations. If nomination is not required to be marked in an account, inspite of it’s explicit benefits, the same has to be clearly mentioned in the account opening form.
11) Service Charges
For presently applicable Service charges please visit our service charges segment on our website www.esafbank.com.
12) Rules for Transactions
1. Cash Transactions, both withdrawals and deposits , permitted at both Base branches
( branch where customer is having account OR branches in the same center) and out station Non Base branches.
2. Cheque Collection Facilities will be available at base braches as well as non base branches.
3. Bank reserves to verify the antecedents of all the transactions in the account under the ambit of the Prevention of Money Laundering Act 2002 or any such regulation, and the customers are liable to produce proof of genuineness of transactions if the Bank desires so.
Customers are informed to do periodical transactions , either debit or credit, to avoid the account becoming inoperative/dormant. As per RBI guidelines, the account will be treated as inactive if there are no customer induced transactions in the account for over a period of 12 months and inoperative/dormant if it is not transacted for another 12 more months (ie a total of 24 months).
For the purpose of classifying an account as inoperative/dormant both the type of transactions i.e. debit as well as credit transactions induced at the instance of customers as well as third party are considered. However, the service charges levied by the bank or interest credited by the Bank should not be considered.
No transaction will be permitted in an inoperative/dormant account, without activation .To activate such accounts customer is required to submit application for activation and a fresh set of KYC documents, along with some transaction in the account.
For details of all Service charges , please visit our site www.esafbank.com
14) Bank’s Right of “General lien and Set Off”
The Bank , at its discretion, in exercise of its rights of “General lien and Set Off” , shall have the right to appropriate the proceeds of any deposits(including Fixed Deposit) standing to the credit of the customer, towards the satisfaction of any outstanding dues , whatsoever, arising as a result :
i).of any Credit facilities extended/to be extended to the customer either as principal borrower or co borrower or guarantor ;
ii).and/or any of the Bank' services extended/to be extended to and/or used by the Customer(s)
15) Additions and alterations to the Rules
The Bank reserves the right to alter or add to these rules at any time without notice.
16) The above rules are not exhaustive.
For further details, please contact the our Branch nearest to you or visit our Website www.esafbank.com.