1. To submit an application : When a new account is opened the bank usually requires an introduction. The introduction may be by an existing customer or by some reputed person who is well-known to the bank. The purpose of correct introduction is to establish applicants correct identity and honesty so that frauds could be avoided in future.
2. To take specimen signature : After getting a proper introduction, the bank opens the account and the specimen signature of individual persons who are authorized to operate the account are obtained. In case of partnership the specimen signatures of all partners who are authorized to operate the account are obtained.
Applicants are, generally, asked to give two to three specimens of their signatures on a card which is kept safely in the bank's record. When the customer signs any cheque/withdrawal form for withdrawing money from the bank his specimen signatures are compared with his signatures on the cheque or withdrawal form.
If his signature do not tally with his specimen signatures, his cheques and withdrawals are not honoured.
3. To deposit initial amount : Initial amount is the minimum amount which the applicant is required to deposit in the bank for opening a new account. In case of a saving account it is Rs. 500 to 1000. After receiving the initial amount the bank opens an account in the name of the applicant.
After the completion of all these formalities, account can be opened. When a new account is opened the bank supplies the depositor a Cheque Book and a Pass Book.
