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What is Bank Account?

Bank Account

A Bank account is the statement of the relationship of a Bank with its customers. The account may be of different types based on the financial transactions as per the agreement of association. Apart from Savings Account & Current account, which we all are very familiar with, following are some types of accounts and the relationships:

Type of Account	Role of Bank	Role of Customer
Deposit Account	Borrower	Lender
Loan Account	Lender	Borrower
Locker Account	Lesser	Lessee
Government Deposit Account (PPF, Senior Citizen Savings Scheme, etc)	Agent	Principal

How to open Bank Account?

To enter into any type of relationship, Bank has to assure itself about the identity of its prospective customer. To establish the identity, the Bank follows a procedure called KYC (Know Your Customer) and asks for the following two documents:

A Photo Identity Card
A Document which establishes the address of the customer.

The procedure is quiet stringent and Bank has to meticulously follow the same as per RBI’s guidelines. The list of documents acceptable to the Bank in establishing the identity and address of the customer is generally available in every Bank’s website. For people who are unable to produce these documents may also maintain a deposit account with a Bank, however, there are several restrictions on the amount and summation of the credit transactions.