While opening the Current Accounts for Clubs, Societies Associations, etc. the customers need to submit ‘know your customer’ related official valid documents of the organisations and natural persons behind the operations of such entities. In addition to KYC-related documents, let us now examine, what are the other requirements for opening captioned accounts.
Accounts of Clubs, Societies, Associations, Educational institutions, cooperative Societies, etc. are constituted and governed under the bye-laws of the respective entity. Bye-laws are the local law made by an association, club, or society, in terms of Acts and Rules framed by the State. Every state in India has its own Co-operative Societies Act. The bye-laws framed by a registered association or society will have legal force effectually after verification and approval of the same by the Registrar of co-operative societies of the State. The following documents are generally called for the opening of bank accounts of Clubs, Societies (including co-operatives), Associations, and Educational institutions.
1. Certified true copy of the Rules, Regulations, and Bye-laws (as the case may be Certified true copy of Certificate of Registration or incorporation in the case of registered bodies (originals will be verified and returned).
2. A certified true copy of the Resolution (certified by the Chairman of the meeting of the Governing Board or Managing committee or like body, at which it was passed), authorizing the opening of an account with the Bank and listing out the names of office-bearers authorized to operate the account in accordance with the Rules and Bye-laws of the body.
3. A copy of the balance sheet in the case of a cooperative society, if available.
4. In some States, the Cooperative societies can open an account with a bank other than a cooperative bank only with permission from the Registrar of Co-operative societies. In such cases, a copy of such permission is to be enclosed.
Also read:
IMPORTANT RULES RELATED TO THE BANK ACCOUNT OF A MINOR
HOW DO OPEN BANK ACCOUNTS FOR HOSPITALS, NURSING HOMES, AND PATHOLOGIES IN BANKS?
REQUIREMENTS FOR OPENING SB ACCOUNT IN A BANK
RBI GUIDELINES ON OPENING AND OPERATION OF CURRENT ACCOUNTS AND CC/OD ACCOUNTS BY BANKS
want to open a bank account for a family trust under formation, with d mat ,trading and FD facilities
Mr.V.K.Sharma,
Please read the following article “How to open Trust/foundation account in bank”
https://bankingschool.co.in/deposits/how-to-open-trustfoundation-account-in-bank/
I want to know whether a SAVINGS ACCOUNT canbe opened by a Society registered under the Sociecities Registeration Act 1860 with a Bank. SBI has informed that Savings Bank Account canot be opened as per rules of the RBI. But many Banks are opening SAvings Account. Pl clarify the correct position.
The Associations, Societies, educational institutions and Hindu Undivided Family (HUF) and Trusts, as long as the account not used for trading purpose. To know who are eligible and who are not eligible to open Savings Bank account click the following link
https://bankingschool.co.in/deposits/eligibility-criteria-for-opening-sb-accounts/
Sir, though few banks are opening SB for co-op societies who are into financial trade. Please clarify whether it’s a policy of that bank or RBI has any guideline in this regard. Also, Coop societies should have a right to earn interest on their balances.
Associations, Societies, educational institutions and Hindu Undivided Family (HUF) and Trusts, can open SB account, so long as the account not used for trading purpose. [Government of India Notification dated November 12, 2009- Rule 2 sub-rule (1) clause (ca) defines Non-Profit Organization (NPO). NPO means any entity or organisation that is registered as a trust or a society under the Societies Registration Act, 1860 or any similar State legislation or a company registered under section 25 of the Companies Act, 1956.(RBI circular/2011- 12/72 DBOD. AML. BC. No. 2 /14 .01.001/2011-12 July 1, 2011)]. I don’t remember the reference no. of RBI on SB account opening guidelines
plz sir,
socity oepn current account circular this mail id
[email protected]
mobile no 9335440770
You have to collect it from your bank.
Xyz employee housing society is account title. Will it fall in society accounts?
Housing societies also come under regulations of co-operative societies acts.
Our club has an savings account and now bank is asking for link aadhar with the account .. What to do ?
As the club does not have the aadhar card, the aadhar card number of Authorised signatories may be linked to your account.
Sir,
I have a doubt regarding opening of SB account of goverment school. As per RBI which reads”On a review of the matter, it has now been decided to allow banks to open savings bank accounts in the name of Government departments/bodies/ agencies in respect of grants/subsidies released for implementation of various programmes/schemes sponsored by Central Government on production of an authorization to the bank from the respective Government departments certifying that the concerned Government departments or body has been permitted to open savings bank account. Banks should keep on their record a copy of the authorization issued by the respective Central Government departments”
Who will give authorization to bank to open SB acc of govt school, is it head of the school on schools letter pade or any education dept.
Because when i ask for authorization, the school principal says that they dont have any such authorisation letter from dept.
What to do in this case.?can we open acc based on authorization of principal/headmaster…or something else required other than kyc documens of authorised signatories?
If a school is opening the SB account for the purpose of subsidy schemes sponsored by Central Government, (such as Sarva Shiksha Abhiyan, Mid Day Meal, RMSA etc.) the school has to produce an authorisation letter issued by ‘Department of School Education and Literacy’, (Ministry of human resource), Delhi. In the cases of state Government sponsored schemes, authorisation letter to be issued by Directorate of Primary education or Department of Primary and Secondary Education of concerned states.The concerned Government department or body are also been permitted to open savings bank account.
we had formed a Resident Welfare Association 3/4 years back. this Assn had one S.B.Account with a Scheduled Bank. Now, since the Association has stopped functioning, this Account has to be closed. pl suggest the procedure for this along with specimen of any resolution or statement to be given to the Bank for this .
thanks
Pass a resolution to close the account from the bank (Mention name of the bank and branch) and give an application to the bank for closure of the account and pay cash. The authorisedsignatories shall sign on the cheque.Copy of the resolution signed by the president of the association and countersigned by Hon.Secretary or some other office bearers. Unused cheque leaves may be surrendered to the bank.
Sir,
We had a whatsapp group name ( lamit alumni) our college senior & junior we have 170 + members we want to open a account to deposit money monthly and the money is used for helping the group members for medical problems or in case of death of a member to the family
How I can do thi please suggest
Regards
Om soni
Bank acccount canot be opened in the name of whatsapp group. You can form an association or club in any name style and open the bank account.
dear sir,
i am prathap singh, now working in IOB @ Vanasthalipuram Branch, I want TRUST Account opening form and what are the documents required for opening the bank account.
please advise,
with Regards,
Prathap Singh
9948223333
In IOB seperate account opening form for Trust account. If you dont have the form in your branch, you may down load or collect from nearby branch. For opening Trust account you have to take permission from RO-Law department. I’m sharing the link here on how to open Trust account.
https://bankingschool.co.in/deposits/how-to-open-trustfoundation-account-in-bank/
Sir,
I am a Branch Manager in a State co-operative Bank. I am currently facing a problem related to Savings A/C of a Club. One of signatory out of three denied that signature in specimen (A/C opening form) is fake. And verbally told me to stop transaction in that account. Rest of Two signatory want to transact and want clear a cheque of another bank through this account (Rs. 2 Lacs). what is your opinion?
It’s an embarassing situation now, if the signature is really fake. Please ask the person to identify which authorised signatory’s signature is fake, and call that person to confirm his signature. Lest, you may send a letter to the club and call for the documents afresh for KYC compliance. In the process you verify the signatures of all the authorised signatories.
Ours was a registered society in Chennai from 1990 to 2002 . From 2002 the registration charges was never renewed by society committee and eventually the govt of tamil nadu passed an official gazetted notification revoking the registration number of our society.
The TNSC bank where our society’s bank account is – is still operating the bank account. Technically we are unregistered society and also the PAN card is deemed invalid. TNSC bank hasn’t carried out an KYC from 2002 till date.
What can i as a resident of society ask the bank to do so that they relook at the wrong doings done thus far ?
Please help on high priority.
In the absence of registration, all the trustees in charge of the fund have alone a legal status and the society has no legal status, and, therefore, it cannot sue and be sued. A non-registered society may exist in fact but not in law. It is immaterial under the Act whether the society is registered but where the benefit is claimed, the registration of society under the Act is required. An unregistered society cannot claim benefits under the Income-tax act.Banks do not interfere with internal problems of the society. You may consult a lawyer for the purpose if you wish to stop the operation of bank account.
Whose PAN should be fed in KYC while opening SB account of non trading registered society?
KYC of principle office bearers/Authorised signatories
PAN details of Authorised signatories for KYC purpose if the society does not have the PAN no.
Hello sir how to open bank account hostel name
You may open a current account as it is considered as commercial activity. Generally banks insisit ond following details for opening hostel account.
1. a trade license for carrying on the business of the hostel,
a No-objection certificate from the local municipal corporation, the municipality, or the local panchayat, as the appropriate body may be.
2. Registration under Sarai act 1867
Sarai” means any building used for the shelter and accommodation of travellers, and includes, in any case in which only part of a building is used as a sarai, the part so used of such building.
3. Completion KYC norms applicable for proprietor/Partner/Limited Companies etc.Click the following URL
https://bankingschool.co.in/deposits/kyc-documents-for-current-accounts-of-all-varieties/
Our residential apartment association is registered under West Bengal Societies Registration Act. Few months bank the bank manager seized our account due to want of PAN Card and told that PAN Card of your Residential Welfare association is required for KYC purpose as per RBI guidelines. Is it true?
The co-op hsg society is supposed to file the reutrn of income by virtue of provisions of Sec.139(1) of the Act if its income is chargeable to tax. As such, it will have to obtain PAN as well for compliance of Income Tax Rules. As mentioned, the society needs to file the return if its income is chargeable to tax. As far as housing society is concerned, the income by way of contributions from the members will be governed by the concept of ‘principle of mutuality’ & will not be charged to tax. It however also implies that any other income like interest earned on society’s deposits kept in a bank or any other income earned by the society will be charged to tax.Ex: If the open space or terrace is rented to members of the society it falls under the concept of mutuality, but if rented to non-members or outsiders the rental income thus becomes fully taxable income under the head Income .
Sir ,We want to open an account for construction of our flats. Builder is not in condition to construct flat. We want to construct our flats by adding 25-30 buyers remianing amount . Builder is ready for registry without taking any remaining money from us.
We are thinking to open an account as for our Buyers union. We will deposit our remaining amount in this account and builder will do registry process after our confirmation .
We don’t want to form society now because builder is not paying any taxes . We just want to complete our floor from inner side. It will be unsafe to give our money directly to builder .Builder will digest everything and no work will be done in our flats.
Kindly suggest how can we open an account for construction of flats from remaining amount of our 25-30 buyers.
How can we avoid any TDS on this account.
I do not have clear-cut about how you have to proceed in the given situation. In my opinion, you may form a Flat Purchasers’ welfare association and open a bank account. Regarding tax/GST etc.you may consult a charted accountant and his guidance in the matter.
what are the procedure to make a bank account for the purpose of puja committee in our village.
Best option is to register the Puja committee under society act to get statutory advantages from govt. maintenance of books, including interest gain on deposits. etc.
Sir – We have registered our apartment owners association as an AOP. We are working on opening a bank account and the Bank is recommending to open a trust account. I understand AOP and Trust have different legal statuses, but I’m not very sure if the trust account is same as a savings account. Any insights?
I don’t know why a bank is recommending you to open a Trust account in lieu of Association account. In fact, Trust accounts are ordinarily not opened by the Bank without the approval of their Law department. Operation of the bank account under association bye-laws is easier.
I have a query – we have an association of persons for which we also have a PAN Card. We are an unregistered association. our main committee is in Delhi and using this PAN we have a bank account. We also have some members in East covered under East Zone. Till recent they had a bank account and had used our PAN. Of late their account has been made non-operative. They want them to register the Association under West Bengal State – my question is whether it is a must to register our association and if East Zone registers under West Zbengal State then what about us – is it necessary to register also in Delhi. Please clarify and what are the implications of registering and not registering??
If the association at the east zone is a different entity, you need not register the association at the west zone.
SBI is refusing to continue the SB A/Cofour housing association which is not trading,is non profit organisation.They are quoting RBI .I do not find any such instruction in the RBI circulars. Please clarify
Ask them to show the circular if they have received any such circular. As per my knowledge, a large number of co-operative housing societies and Residents welfare associations are maintaining SB accounts in the bank.
i am kalaimani sekar i have opening account in 22 banks. any problems can be raised for my side
What is the purpose of opening so many accounts? As per RBI guidelines, in addition to seeking NOC from the existing bankers of the prospective current account customer, banks should seek information from CRILC and verify the data received from the CRILC, whether the prospective customer is enjoying credit facilities from another bank.
WHY THEY DONT ALLOWED TO OPEN AN ACCOUNT OF APARTMENTS IN SBI ???????
Savings Bank (SB) accounts are opened in the bank mainly for saving purposes. Customers cannot open an SB account for business purposes. The accounts of Trusts, housing societies, panchayat samitis, Government boards, etc. are treated as business purposes accounts and permitted to open only current accounts in the bank. Some banks are ignoring this rule of RBI and allow the opening of SB accounts, to retain the accounts of those who maintain a sizeable balance in the account.