Banks are required to extend financial services to all sections of society, including illiterate and visually impaired individuals, while ensuring operational safety and compliance with regulatory norms. The following guidelines outline the procedures and limitations applicable to the opening and operation of accounts by such customers.
1. Joint Accounts Between Two Illiterate Persons
Ordinarily, banks do not permit the opening of joint accounts between two illiterate persons.
However, as an exception, banks may allow the opening of joint accounts between closely related individuals—such as an illiterate husband and wife—at their discretion.
In such cases, the account shall be jointly operated, meaning that both account holders must be present at the branch for any account operation or transaction.
2. Joint Accounts Between Illiterate and Literate Persons
Banks may allow an illiterate person to open a joint account with a literate person who is closely related to them.
However, the account must be operated jointly. Modes of operation such as “Either or Survivor”, “Former or Survivor”, or “Latter or Survivor”* are not permitted in such cases. ( Read: MEANING OF DIFFERENT OPERATION MANDATES IN JOINT ACCOUNTS)
Banks are expected to exercise due diligence and carefully examine each request, including the purpose of the account and the nature and source of the customer’s income.
3. Cheque Book Facility for Illiterate Account Holders
The cheque book facility shall not be extended to illiterate depositors, whether they maintain single or joint savings bank accounts. This measure is intended to prevent operational risks and potential misuse.
4. Issuance of Debit/ATM Cards to Illiterate Persons
Banks generally do not issue debit or ATM cards to illiterate customers.
Since such customers may face challenges in operating ATMs or Point-of-Sale (POS) terminals independently, this restriction ensures the safety and integrity of their funds.
5. Opening of Current Accounts by Illiterate Persons
Banks may, at their discretion, allow illiterate customers to open deposit accounts (such as savings accounts).
However, the opening of current accounts in the name of illiterate persons is not permitted.
6. Banking Facilities for Visually Impaired Persons
Visually impaired customers are entitled to all standard banking facilities available to other customers. These include:
* Cheque book facility
* Locker facility
* Retail loans
* Credit cards, and other related services
Banks must ensure that visually impaired customers are not subjected to any form of discrimination in availing banking services.
7. Procedure for Opening Accounts for Visually Impaired Customers
Banks are required to follow the same account opening procedures for visually impaired persons as they do for other customers. No additional documentation or procedural barriers should be imposed solely on the grounds of visual impairment.
8. Distinction Between Illiterate and Visually Impaired Customers
Visually impaired customers must not be equated with illiterate customers.
They are entitled to all normal banking services, including the use of a thumb impression for operating accounts, under the same conditions applicable to literate customers.
9. Cheque Book Facility for Visually Impaired Customers
Visually impaired persons shall be eligible for cheque book facilities.
All procedures governing the issuance and operation of cheque books for such customers must be identical to those applicable to other account holders.
10. Joint Accounts Involving Visually Impaired Customers
A visually impaired person may open an account individually or jointly with other persons, including those who are also visually impaired. Banks must not impose any restrictions on such joint account arrangements.
11. Use of ATMs by Visually Impaired Customers
As per the Reserve Bank of India (RBI) guidelines, banks are required to ensure that at least one-third of all ATMs are designed as “Talking ATMs” equipped with Braille-enabled keypads.
These features enable visually impaired persons to use ATM services independently and securely.
Conclusion
While certain operational restrictions are placed on accounts of illiterate persons to safeguard their financial interests, visually impaired customers are entitled to full access to all banking facilities.
The regulatory framework seeks to promote inclusive banking practices while maintaining security, accessibility, and fairness for all categories of customers.
