BLL2 - Types of Customers Part 2

1. Different types of customers

There are different types of Customers, namely:

1.1 Illiterates

1.2 Accounts of Physically Impaired Person

1.3 Visually Impaired Persons

1.4 Accounts Of Disabled Persons With Autism, Cerebral Palsy, Mental

RetardationAnd Multiple Disabilities

1.5 Joint Accounts (Two or more individuals payable to any one or more of them
or to the survivor or survivors.)

1.6 Hindu Undivided Family (HUF)

1.1 Illiterates
An illiterate person is one who cannot put his signature. The fact that a person is
illiterate does not make him ineligible for opening an account. However, care should
be taken while opening and operation of accounts in the names of illiterates. Such
precautions include
At the time of accepting the deposit, the depositor should come to the branch in
person with at least one respectable witness who should be literate and known to the
bank.The form of application and the rules governing the deposit should be explained
to the depositor in his/her own language by the Branch officials.
Branches may open joint accounts in the names of illiterate persons with a literate
person or with another illiterate person with suitable repayment instructions. As per
new guideline we should obtain an undertaking from the account holders that
cheques should be issued by only literate account holders.
The thumb impression of the illiterate depositor should be taken on the account
opening form in the presence of the introducer. While opening Savings Bank accounts
in the names of illiterate persons, the branches shall follow the prescribed guidelines.
The present guidelines are as follows:
“The thumb impression of the illiterate depositor should be taken on account opening
Form in the presence of a witness.
There is no legal provision which prescribes which thumb impression is to be
affixed in case of male/ female. There is no law/ rule which prevent a female
from affixing her left thumb impression. The customer is free to put his/her left
or right thumb impression on a document.
However, for clarity, it should be mentioned below the thumb impression whether it
is left hand thumb impression or right hand thumb impression.
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 Identification marks on the person of the depositor such as permanent scar or moles
should also be recorded on the account opening form under the initials of the officer
concerned. The illiterate customer should be advised that he/she should call on the
bank personally for withdrawal of the time deposit.
At the time of making payment of the deposit, the depositor should be required to
attend in person along with a respectable witness known to the bank, but such
witness need not necessarily be the same person who had originally attested the
thumb impression of the depositor at the time of acceptance of the deposit.

1.1.2 Accounts of Illiterate Person :

An illiterate person may open a Savings Bank account in his sole name or jointly with
other person(s). The Bank may at its discretion open deposit accounts other than
Current Accounts of illiterate person.

At the time of withdrawl /repayment of deposit amount and/or interest, the account
holder should affix his/her thumb impression or mark in the presence of the
authorised officer who should verify the identity of the person. The Bank will explain
the need for proper care and safe keeping of the passbook etc., given to the account
holder. The Bank official shall explain the terms and conditions governing the account
to the illiterate person.

1.2 Accounts of Physically Impaired Person :

A physically impaired person may open an account in his sole name or jointly with
other person(s). The Bank may at its discretion open deposit accounts other than
Current Accounts.

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.

• Operation – Singly

• Operation - Singly with the assistance of a reliable person, as per the choice of the

Applicant.

• Operation - Jointly.

1.3 Visually Impaired Persons/Blind Persons

At times, visually impaired persons may approach branches for opening accounts
either singly or jointly with another person or persons. The bank should take extra
care while opening such account. Even though there is no legal bar against visually
impaired persons entering into contracts or for that matter, opening of accounts,
there are certain risks involved while opening/operation of accounts.
Banks should not equate visually impaired customers with illiterate customers. They
must provide the same facilities to a visually impaired customer / prospective
customer as it would to any other customer. But at the same time, the customers
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should be made aware of the risk involved in some of these facilities which may be
higher than that for a normal customer. [H.O Circular No. 116/2009 Dt. 06.03.2009]
The blind person intending to open a Bank account should personally call on the Bank
for opening the account either singly or jointly with any other person. At the time of
opening the account, the Rules of Business and other terms and conditions for
opening and operating the account should be read out and explained to the blind
person by an Officer or the Branch Manager in the presence of a witness known to the
Bank. The signature of the witness should be obtained on the Account Opening Form
or on a sheet of paper attached thereto, confirming this.
As a blind person may not be in a position to sign consistently, a thumb impression of
the blind person should be obtained in addition to his signature, on the Account
Opening Form, Two photographs of the blind persons should be obtained and a copy
each should be affixed on the Account opening Form and Pass Book. The signature or
the left / right hand thumb impression of the blind person should be obtained on each
of the photographs and should be duly countersigned by the Officer / Branch
Manager.
The fact that the account holder is a blind person should be clearly noted so as to
enable the concerned staff to act with caution while allowing operations in the
account. Blind persons may be allowed to operate their accounts on their own in
cases where the Branch Manager is satisfied about the capacity of the person to
operate the account himself.
Considering the merits of the case, branches may allow at their discretion, the next
of kin of a blind account holder to operate the account as a representative of the
blind person. However necessary precautions such as obtaining a letter of mandate,
and duly explaining the provisions of the letter to the account or as a better
alternative, getting a Power of Attorney is required.
Cheque books need not be issued to blind account holders. However in exceptional
cases, the Branch Manager may consider issuing cheque books. For withdrawing
money, the blind person should call personally on the Bank. However, if he is
incapacitated or where the circumstances warrant it, the Branch Manager may
authorize payment of cash to a third party also, after satisfying himself with the
genuineness of the transaction.
Cash payments to a blind person should always be made in the presence of a person
known to the Bank who should be asked to sign the instrument as a witness to the
transaction. While such witnesses should preferably be customers of the Bank, an
official of the Bank other than the cashier or the officer authorizing the payment
should also sign as a witness.
The Pass Book should always be brought by the blind person while making a
withdrawal and the entries made and the balance outstanding should be read out to
the customer in confidence.
Blind persons should not issue third party cheques. An undertaking letter on the same
lines as that obtained in the case of illiterate depositors should be obtained.
Cash deposits should be received in the presence of a witness (a customer or official
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of the Bank other than the cashier receiving payment). The amount deposited should
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be entered in the Pass book and should confirm to the blind person orally.
 1.3.2 Accounts of Visually Impaired Person

All banking facilities such as cheque book, ATM facility, INB, lockers, retail loans

etc. are offered to visually challenged persons without any discrimination.

1.3.3 Procedural Guidelines For Banking Facilities To Visually Impaired Persons

I. General Instructions

Banking facilities for visually impaired persons should be offered at all branches of
the bank. Additional facilities like reading and filling up of forms, slips, cheques
should be provided to a visually impaired customer, if required.

Banks should not deny any services to visually impaired customers including visually
impaired. A visually impaired customer must not be forced to operate the bank
account jointly with any person or in the presence of any person.

Visually impaired customers may be allowed to appoint a person/persons as their

Power of Attorney or Mandate Holder to operate their bank account if the visually
impaired customer so desires.

II. Opening of Bank Accounts

All banking products offered by the bank should be made available to visually
impaired persons. The bank must follow the same procedure for opening the
account of a visually impaired person as it does for its other customers.

He / She must be allowed to open the account either singly or jointly with others.

The Bank must allow the visually impaired customer to open a joint account with
anybody that he/she chooses including person(s) who is/are visually impaired. The
Officer / Manager of the branch should read out the rules of business and other
terms and conditions in the presence of a witness, if required by the customer.

The bank branch manager must inform a visually impaired customer/prospective

customer of his rights and liabilities before opening the account. The documentation
requirements of a visually impaired customer must be the same as any other
customer.

The account has to be clearly marked as "the account holder is visually impaired".

III. Withdrawal of cash / Cheque book facility

Facilities for withdrawal of cash as are provided to all customers regarding cash
payments must be provided to visually impaired customers.

In case a visually impaired customer makes cash withdrawals at the bank then the
payment must be made in the presence of another bank employee/officer. No
outside witnesses are required unless the visually impaired customer requests that
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such witnesses be present.

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 Operations should not be restricted to self-withdrawals. Cheque book facility should
not be denied to visually impaired person.

All procedures pertaining to the use of such cheque books by visually impaired

customers must be in accordance with that the other customers.

Cheques issued by visually impaired persons to third parties should be honoured, if

otherwise in order.

IV. Credit Cards /Debit Cards

Visually impaired customers must be issued credit cards/debit cards on request.

All rules and regulation regarding credit/debit card must be available on the web-
site of the respective bank in accessible format. These should be read out to visually
impaired persons and perceived risk factors explained to them. Banks may consider
issuing Credit/Debit Card with Photograph. This Photograph will work as an
identification/verification.

V. ATM/Debit Cards

Visually impaired customers must be permitted to avail of ATM facilities.

Banks should also ensure that the ATMs are accessible to other categories of persons

with disabilities such as the orthopedically disabled.

VI. on Line Banking / Mobile Banking and Tele Banking/Phone Banking

All Banks must have accessible websites and conform to international accessibility
standards.

All customer facing applications such as web applications, desktop applications and
mobile applications should be accessible to visually impaired persons. The banks
should have alternate methods of user authentication/password verification.All
features especially those related to customer security must be accessible visually
impaired persons.

VII. Lockers

Visually impaired customers should be provided with locker facility on request.

Suitable lockers conveniently located for operations may be allotted. Bank

procedures for issuing a locker to a visually impaired customer must be the same as
to any other customer.

A visually impaired customer may be given the following options for operation of
locker:

• Operation – Singly

• Operation - Singly with the assistance of a reliable person, as per the choice of
the Applicant.
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• Operation - Jointly.
 A visually impaired customer may request the person in-charge of the locker to
be present when the locker is opened or to check if nothing has been left behind or
fallen after the locker is closed.

VIII. Loans

Loans must be made available to visually impaired customers as are offered to

other customers and their impairment of vision should not be a criterion for
sanctioning/denying a loan.

No additional burden of interest payment, collateral and other terms should be

imposed on the visually impaired customer.

1.4 Accounts Of Disabled Persons With Autism, Cerebral Palsy, Mental Retardation
And Multiple Disabilities

Guardianship certificate issued either by the District Court under Mental Health Act,
1987 or by the Local Level committees under the National Trust for the welfare of
persons with Autism, Cerebral Palsy, Mental retardation and Multiple Disabilities
Act, 1999 is required for the purpose of opening / operating accounts of such
disabled persons. Branches should give proper guidance to the guardians/managers
of the disabled persons with autism, cerebral palsy, mental retardation and
multiple disabilities so that they do not face any difficulties in opening of an
account.

1.5 Joint Account (Two or more individuals open the account with payable to any one
or more of them or to the survivor or survivors instructions)
An account opened in the name of two or more persons is a Joint Account.
In the absence of any instructions to the contrary, operation in case of a joint
account/ repayment of a deposit standing jointly in the name of two or more persons
is required to be made jointly to all of them.
To overcome this practical difficulty, specific instructions as to the operation of the
account also known as the mandate of operation, should be obtained. Similarly the
repayment clause should also be obtained. The operations in the account and
repayment at the time of closing the account should strictly be in accordance with
the mandate.
While opening the account, the instructions should also carefully be recorded. Any
subsequent variation or revocation should be in writing and signed by all the parties
to the account under the authentication of the Branch Manager.
Authority to operate the account does not extend to borrow, overdraw or discount
bills of exchange, for which there should be a special agreement between all joint
account holders on the one hand and the Bank on the other hand.
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 In the event of any dispute notified to the Bank, the mandate will stand revoked and
in such cases the account should be operated jointly until a fresh mandate, duly
signed by all parties is obtained. The mandate of operation can be revoked by anyone
of the joint A/c holders, irrespective of the mode of operation. A cheque drawn by an
authorized signatory can be countermanded by another one who is or is not
authorized to operate the account.
While there are no restrictions on the number of account holders in a joint account,
it is incumbent upon branches to examine every request for opening joint accounts
very carefully. In particular, the purpose, nature of the business handled by the
parties and other relevant aspects relating to the business / financial position of the
account holders needs to be looked into. Care should also be taken when the number
of account holders is large.

1.6 Hindu Undivided Family (HUF) A Joint Hindu Family

A Joint Hindu Family also known as Hindu Undivided Family is a relationship arising
out of status of having been born in a family, owning ancestral property, the Karta
being the head of the family. The Karta and the male members, known as co-
parceners carry on the business. A Hindu Undivided Family (HUF) is not a partnership
firm.
The Karta is vested with the right to manage the property. He/she can create charges
over the ancestral property for the benefit of the family. He/she can contract, give
receipts, discharge claims and draw bills of exchange etc., for carrying on the
business. He/she can pay general family debts and government’s dues including
revenue. He/she can incur legal expenses in a suit affecting the family property and
expenses for maintenance of the family members and the marriage of co-parceners
and of female members.
The Karta cannot however, while acting on behalf of the family, make a contract
which binds the other members personally. They will be liable only to the extent of
their share in the joint family property. A minor member cannot be made liable
beyond his/her share unless he/she ratifies the contract on attaining majority.
On the death of a co-parcener intestate, his share will devolve on his sons, wife,
daughters, mother and other relatives, since they acquire their right by succession.
After the commencement of Hindu Succession [Amendment] Act 2005 which removes
the discrimination against daughters as contained in Section 6 of the Hindu Succession
Act 1956, the daughters are entitled to equal rights as coparceners like sons. The
Amended Act substitutes Section 6 of the Succession Act. As per the substituted
Section 6, the daughter of a co-parcener shall by birth become a co-parcener in her
own right in the same manner as the son, and the daughter shall have the same rights
and liabilities as that of the son. [HO Circular No.147/2006 dated 07.04.2006].
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