Operation method of joint account in bank.

what are the procedures to maintain a joint bank account?

The mode of operating a joint account can be any one of the following types-

Both jointly:

both the customer have to sign for withdrawl. Any instruction to the bank should also carry signature of both the customers.

Jointly or survivor:

while the account will be oeparted by both the account holders, on the death of any of them,the balance becomes payble to the survivor

Either or survivor:

any one of the customer can sign and operate the account can be opened in this mode, if A,A and C opena joint account with operation by "anyone or survivor", the bank will pass cheques signed by any one of the three customer

Former or survivor:

Only the first of the two account holders can operate the account, on the death of the first account holder, the balance in the account is payble to the survivor

Special instructions for joint account holders:
Where there are more than two joint account holders,operating instructions such as " any two or survivor" or "first two or survivor" may eb given. The account holders may also like to specify the powers of the joint account holders with specific instructions

Examples of such instructions are:

Cheques upto Rs 10,000 can be signed by any one.

Cheques in excess of Rs 10,000 to be signed by any two.

Cheques upto rs 1lakh to be signed by 1 or 2 only

Cheques above Rs 1 lakh to be signed by 1 or 2 and any above of the others.

Operating instructions that put onerous responsibilities on the bank should not be accepeted. When an operating instruction has been accepted, it must be followed scrupulously.

The customer open joint accounts for the following reason

Accounts are opened with the survivor clause for:
Convinience of operation.

Easy settlement in acse of death of the account holder.

Joint operation is choosen when both account holders need to have control over the use of funds.


Author: Mohammed Julfekar Haider20 Aug 2010 Member Level: Gold   Points : 1

Hi Swastika,

As you have already given a good information about the article. Could you please tell us that this facility is applicable for every bank or with some certain banks.

With regards,

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