STEPS : REQUIRED FOR OPENING A BANK ACCOUNT
While opening a Bank account, the following steps are required to be undertaken / followed: -
1. The style in which the Bank account is to be opened has to be decided and the style can be any one of the following styles: -
- X Y & SONS (HUF)
- X KUMAR Z KUMAR
In the above styles, X denotes the first name of the Karta of the HUF and Y denotes the family nam or title of the Karta. Further, in option d) hereinabove, the style X Kumar Z Kumar represents X as karta and Z as his son. Now that daughters have also become coparceners, there should not be a problem in keeping the name as X Kumar A Kumari, where A represents daughter of X.
2. After having decided the name in which the account is to be opened, the names of the members constituting the HUF is required which is generally as follows:
a) Karta of the HUF
b) Karta’s wife
c) Karta’s son or sons
d) Karta’s son’s wife or sons’ wives
e) Karta’s son’s son or sons
f) Karta’s son’s son’s wife or sons’ Sons’ wives
g) Karta’s unmarried daughters
h) Karta’s father
i) Karta’s mother
The above list is not exhaustive and can further expand or reduce. The constitution of the HUF would depend upon the way HUF has come into existence. If the HUF comes into existence on’ receipt of inherited ancestral property by the Karta from his father, then all the members of his family including his father, son, son’s son, unmarried daughters become coparcener in such property and have therefore to be included as the members of the HUF. However, if the HUF comes into existence withOut any inherited property, but say by way of Gift, then in such cases, the HUF of the Karta would include the Karta himself, his wife, his son or sons, his unmarried daughters.
The names of the members of the HUF are generally required to be mentioned in the Account opening form.
3. The third thing that has to be decided as to who will be the signatory to the account to be opened in the name of the HUF. Generally it is the Karta of the HUF who operates the account. Sometimes, Karta may not want to operate the account and in such cases, it can be operated byany member or members of the HUF. There is no bar/restriction on any member or members of the HUF operating the account, if authorised. Depending upon the signatories who will be operating the account, a rubber Stamp is required to be prepared in the manner as follows: -