Describe the procedure to be followed to open a savings account in a bank.

The procedure for opening a savings account in a bank consists of the following steps:

1. Application in the Prescribed Form — The applicant collects the prescribed application form for a savings account from the bank (free of charge) and fills in details such as name, occupation, full address, telephone number, and specimen signatures. The bank may also ask for the names of references.

2. Introduction of the Applicant — The bank insists that the applicant be introduced by an existing account holder of the bank or a reputed person. The introducer signs on the application form and writes his full address. The purpose of introduction is to verify identity and reduce the scope for fraud.

3. Specimen Signatures — The applicant is asked to give two or three specimen signatures on a prescribed signature card. These are filed alphabetically and are used to verify signatures on cheques. If the signatures on a cheque do not tally, the bank can refuse payment.

4. Photographs and KYC Documents — The applicant has to submit photographs, which are affixed on the signature card. He also submits Know-Your-Customer (KYC) documents — proof of identity (PAN card, Aadhaar) and proof of address (Aadhaar, electricity bill, etc.). The bank verifies these documents.

5. Initial Deposit — The applicant deposits the minimum initial amount as required by the bank for opening a savings account (the minimum balance varies from bank to bank).

6. Issue of Pass Book, Cheque Book and Pay-in-Slip Book — Once the account is opened, the bank issues:

• A Pass Book showing the customer's account details.
• A Cheque Book for making payments and withdrawals.
• A Pay-in-Slip Book for depositing cash and cheques.

The customer can then operate the savings account by depositing money, withdrawing through cheques, and earning interest on the minimum balance during a month.