Account opening process in Banks for Clubs, Societies or Associations

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