CASA – Basic Operational Guidelines

Operational Guidelines
 Introduction
❑ One of the important functions of the Bank is to accept deposits
from the public for the purpose of lending.

❑ Depositors are the major stakeholders of the Banking System.

❑ RBI is empowered to issue directives/advices on interest rates on

deposits and other aspects regarding conduct of deposit accounts.

❑ Liberalization in the financial system and deregulation of interest

rates, Banks are now free to formulate deposit products within the
broad guidelines issued by RBI.
 Demand Deposit & Saving Deposit

• Demand Deposit means a deposit received by the bank and which is

withdrawable on demand.

• Savings Deposit means a form of demand deposit which is subject to

restrictions to the number of withdrawals as also the number of
withdrawals permitted by the bank during any specific period.
 Demand Deposit & Saving Deposit

Savings and current deposit accounts are a source of low cost funds for the bank hence

termed as Low Cost Deposits

Demand Deposit means a deposit received by the bank and which is withdrawable on
demand.

Savings Deposit means a form of interest-bearing demand deposit which is subject to

restrictions to the number of withdrawals as also the amounts of withdrawals permitted by
the bank during any specific period.

Current Account means a form of non-interest-bearing demand deposit where there are no
restrictions on number of withdrawals depending upon the balance in the account or up to a
particular agreed amount.
 What are benefits of Low Cost Deposit for Bank ?
Bank’s get the following benefits:

• It is a source of Low Cost Deposit

• It gives large Customer Base

• It provide opportunity for Cross Selling

• Optimum uses of Alternate Delivery Channels (A D C) helps in

reducing cost of operation.

 What are benefits of Low-Cost Deposit for Customer ?

The benefits for Customer are many like :

· Easy Liquidity
· Banking Anytime Anywhere
· Having facilities like Debit Card, Cheque book
· Sweep Facility
· Standing Instructions
· Making fund transfers, Bill Payments
· Use of Alternate Delivery Channel/Digital Banking Channels
· Auto credit of salary /wage/ scholarship/pension
· Receipt of Interest on daily basis
 Who can open a SB account?
Individual: Individual who is having the contractual capacity can open the account
for the purpose of saving, wage, salary, scholarship, pension, etc.

Minor under the guardianship: Minor at the age of 10 years or more can open and
operate the account independently with prescribed limits. One time undertaking
from guardians while opening of account is required.

“Non-Profit Organization” : any entity or organization that is registered as a Trust

or a Society under Societies Registration Act 1860 or similar State legislation or a
Company registered under Sec 8 of Companies Act, 2013.

Primary Co-operative Credit Society which is being financed by bank Khadi and
Village Industries Boards
 Who can open a SB account?
Agriculture Product Market Committees

Government Departments/bodies/agencies in respect of grants / subsidies released for

implementation of various programmes/schemes sponsored by Central Govt. subject to
production of an authorization from the respective Government Departments to open savings
accounts

Any trust or institution whose entire income is exempt from payment of income tax

HUF not engaged in business activity: The HUF which is not engaged in any business activity
and only for the purpose of saving are eligible to open the SB accounts

Development of Women and Children in Rural Areas (DWCRA)

SHGs, Farmer’s Club: Self Help Group and Farmer’s Club can open the SB account in which the
contribution from members, interest, donation, etc can be deposited
 Who cannot open SB account?
Any trading or business concern, (e.g. firms of Chartered Accountants,
Lawyers, etc) whether such concern is proprietorship, Partnership, Company
or Association.

Government depts. /bodies depending upon budgetary allocations for

performance of their functions.

Govt. Department, Municipal Corp., Panchayat Samitis, State Housing Board,

State Electricity Board, Industrial Development Authority, Water / Sewerages
/ Drainage Board, State Text Book Publishing Corporation, Metropolitan
Development Authority, Housing Co-operative Society, etc

Regional Rural Banks, Cooperative Banks and Land Development Bank.

Any political party
 Minor’s Account

•Savings Bank, Term Deposit and Recurring Deposit accounts can be opened in the name of minors
which will be called as Minor’s Account

•Savings Bank or Term Deposit Account can also be opened in the name of a minor jointly with natural
guardian or with mother as the guardian or jointly with a major, where minor is represented by
natural guardian

Minors above the age of 10 years will be allowed to open and operate savings bank account
independently with the following conditions:

KYC norms & due diligence of minor should be ensured while opening and operating these accounts.

On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the
account is operated by the natural guardian/ guardian, fresh specimen signature of the erstwhile minor
duly verified by the natural guardian/ guardian would be obtained and kept on record.
 Minor’s Account
Minors above the age of 10 years will be allowed to open and operate savings bank
account independently with the following conditions:

The account will always remain in credit and will not be allowed to be overdrawn under
any circumstances.

Cheque book will be issued to minor account holder. However, the cheque book would
be allowed to be used for the sole purpose of self cash withdrawal from the account.

Minor account holder cannot issue/draw cheques favoring a third party.

An undertaking indemnifying the bank relating to operations in the account by the minor
will be obtained from the father/mother/legal guardian at the time of opening the
account.
 Account of Illiterate Persons

Bank may at its discretion open deposit accounts other than Current Accounts of an illiterate person

The account of such person may be opened provided he/she calls on the Bank personally along with a
witness who is known to both the depositor and the Bank

Normally NO cheque book facility is provided to such SB accounts

At the time of withdrawal / repayment of deposit amount and / or interest, the account holder should
affix his / her thumb impression in the presence of the authorized officer who should verify the identity of
the person.

Illiterate Customer should be explained the need for proper care and safe keeping of Pass Book / ATM-
Debit Card etc.

We should explain the terms and conditions governing the account to the illiterate person.
 Accounts of Visually Challenged Persons
We shall facilitate opening of Savings bank Accounts as well as Term Deposit accounts
to persons of visual impairment

Such accounts will be opened by the account holder personally

Cheque book facility can be made available

Account holder will have to present before the branch official and affix thumb
impression and he/she will be identified through his/ her photograph to facilitate
operations

Bank is also committed in introducing technology banking facilities progressively via

ATM & Internet Banking in keeping with the availability of supporting technology which
will enable visually challenged persons to operate their own accounts
Accounts of Persons with autism, cerebral palsy, mental
retardation & multiple disabilities

Savings Bank and Term Deposits can also be opened in the name of
persons with autism, cerebral palsy, mental retardation and multiple
disabilities by the legal guardian appointed by the District Court under
Mental Health Act, 1987 or by the Local Level Committee set up under
the National Trust for Welfare of Persons with autism, cerebral palsy,
mental retardation and multiple disabilities under Disabilities Act, 1999

Legal guardian, so appointed will furnish an indemnity-cum-undertaking

bond duly stamped as per the local law in force along with Guardianship
Certificate
 Precautions to be taken at the time of opening of account

• Ensure proper filling of account opening forms in all respects

• Use only new set of forms
• Customers should be guided/educated while filling the forms
• No accounts should be opened without the personal presence of the customer
• Customers’ signature should be obtained in presence of the branch official
• Branches should ensure certification by putting a rubber stamp with the words
“Signature of the account holder has been obtained in the presence of branch
official” at the bottom
 Precautions to be taken at the time of opening of account

• Obtain Identity proof, Residence proof and relevant documents as per the type of
accounts
• Aadhar card/Passport/Voter card/Driving License/NREGA job card can be taken for
both identity and residence proof.
• Obtain PAN card/Form 60/15H/15G etc. as per Income tax Rules/Regulations
• All the photocopies of the supporting documents should be verified with the originals
under seal & signature of the branch official with the remark 'Verified with the original
documents'
• Create single Customer-ID for the same customer for multiple accounts
• Get contact details like Mobile/Telephone Nos and Email IDs wherever available
• Nomination should be insisted upon in the best interests of the customer
 Nomination
• Nomination facility is available on all deposit accounts opened by
Individuals and Sole Proprietor
• Nomination so made can be cancelled or changed by the account holders
at any time with the consent of all account holders
• Witness by a third party required in illiterate customer accounts, while
making the nomination and also while cancelling and changing the
existing nomination
• Nomination can be made in favour of a minor also
• The role of nominee comes in the unfortunate event of death of the
account holder/s only
 Impoints related portant to operation in accounts
• Letter of Thanks (Customer & Introducer): The letter of thanks to be sent
to both customers who has opened the account as well as to introducer which
also serve the purpose of address verification.
• Debit Card: It is strictly handed over to the account holder after taking
proper acknowledgement.
• Chequebook: It is issued to the account holder who has agreed to maintain
balance in the account and personalized cheque is issued after placing the
indent in the Finacle.
• E-banking: Customer can use the E-banking facility after the ATM card gets
activated. The customer can be advised for unique feature of self user
creation.
• Passbook/Statement: Banks must offer passbook facility to all its customers.
In case statements are offered and the customer chooses statements, then
statements must be issued monthly.
 What is Dormant account ?

• An account will be classified as dormant, if there are no transactions in the accounts

for a period of 2 years (24 months). At the end of 21st month, suitably letter will be
generated by the system at the time of CSOLOP (MNDTRPT). Similarly, at the end of
24 months, also, the system will similarly generate the letter on account being
classified as dormant.

• INACTIVE A/C- Branch official has to take declaration from customer & enter the
Cdeclare (Menu) in system with transaction in particular account on same date also,
otherwise account again recategorized as same status.
 What is Mandate?

The Joint Account opened by more than one individual can be operated by single
individual or by more than individual jointly. The mandate for operating the account
can be modified with the consent of all account holders.
The joint account holders can give any of the following mandates for the operation of
the account:

• Either or Survivor: If the account is in the name of two individuals say, A & B, the
balance along with interest, if applicable, will be paid to either of account holders
i.e. A or B, on date of maturity or to the survivor on death of any one of the
account holders.
• Former or Survivor: If the account is in the name of two individuals say, A & B, the
balance along with interest, if applicable, will be paid to the former i.e. A on date
of maturity and to the survivor on death of any one of the account holders.
 What is Mandate?

• Latter or Survivor: If the account is in the name of two individuals say, A & B, the
balance along with interest, if applicable, will be paid to the latter i.e. B on date of
maturity and to the survivor on death of any one of the account holders.

• Jointly: The account will be operated by all the account holders jointly.

• Anyone or Survivor: If the account is in the name of two or more individuals say, A, B
& C, the final balance along with interest if applicable, will be paid to any of account
holders i.e. A or B or C, on the date of maturity. The account will be operated by any
one
Customer Information / Secrecy of Customer’s Account

•The information collected from the customers shall not be used for cross selling of
services or products by the Bank, its subsidiaries and affiliates

•If the bank proposes to use such information, it should be strictly with the consent of
the account holder

•The bank shall not disclose details/ particulars of the customer’s account to a third
person or party without the expressed or implied consent from the customer

•Exception to the above, disclosure of information under compulsion of law, where

there is a duty to public to disclose and where interest of the bank requires disclosure
 DICGC COVER

• As per present DICGC rules, each depositor in a bank is insured up to Rs 5

lakh for both the principal and interest amount on deposits held by him in
that particular bank. This includes all deposits held by a person in current
account, savings account, fixed deposits and so on

• If the total of all the deposits held by an individual in a single bank

exceed Rs 5 lakh, then he/she will be able to get only Rs 5 lakh inclusive
of principal and interest amount if the bank goes bankrupt
 Dormant & Unclaimed Accounts

• RBI has established the DEAF. All the unclaimed deposits shall be
transferred to DEAF within a period of 3 months from the expiry of 10
years

• The deposit is however is entitled to claim from the Bank his/her deposit
with interest and Bank would be liable to pay the amount to the
depositor/claimant and claim refund from the Fund.
Account Opening Process

❑ Improvements in Online Account Opening of Savings Bank Account through Web

❑ pre-requisites for opening of the account through online mode
❑ Process of flow of Online Account Opening
❑ Online Account Opening Through Tablets and Mobiles
❑ Features and SOP
❑ Implementation of Union Scan - Mobile Application for Scanning of Documents for
Accounts Opened through DMSACOPN
❑ Standard Operating Procedure (SOP) for using Mobile Application for scanning
documents
❑ Pilot Launch of Video KYC (VKYC) for Account opening

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Thank You