How to open Bank Account

According to Dictionary of Banking and finance ” Bank account is a contractual agreement between a bank and it’s customer, allowing the customer to use bank services for fee. Accounts may be established in the name of individuals or firms.They may be time or demand. They may be single name, joint name or trustee name. They may be general or for some specific purposes.”

How to open Association/Club/Trust/Charity Organization/ Educational Institution/Masjid/Madrasa Account in a Bank
1. Account opening form of a bank to be filled in and signed by the account holder
2. Certified copy of the Memorandum of Article of Association/ By-Laws/ Trust Deed
3. Two copies of recent passport size photograph account holder attested by the introducer
4. Certified copy of Registration/ Permission from the concerned Department(S) of the government
5. Tex Identification Number (TIN.) of all Directors
6. Resolution of Board/ Executive Committee/Governing Body for opening  the account and authorization for its operation dully certified by the Chairman/Secretary/ President
7. Registration Certificate (If registered)
8. Permission Letter from Bureau of N.G.O.(in case of N.G.O A/C)

How to open Private and Public Limited Company Account in a Bank

1. Account opening form of a bank to be filled in and signed by the account holder
2. Introduction by an account holder with signature and account number or any person which is acceptable to the bank
3. Two copies of recent passport size photograph account holder attested by the introducer
4. One copy passport size photograph of nominee attested by the account holder
5. Certified copy of the Memorandum of Article of Association of the company
6. Certified copy of Certificate of Incorporation of the company
7. Certified copy of Certificate of Commencement (In case of Public Limited company)
8. Tex Identification Number (TIN.) of all Directors
9. Tex paid Certificate of all Directors
10. Board Resolution of all directors to open the account and authorization for its operation dully certified by the Chairman/Managing Director of the company
11. Copy of updated Trade Lenience
12. List of all directors along with their designation, full address and phone numbers
13. Certified copy of Form-Xii certified by Registered of Joint Stock Company (In case of change in directorship)
14. Certified copy of Registration in-case of Insurance companies
15. Voter’s Identity Card of all directors

How to open a Partnership Account in a Bank

1. Account opening form of a bank to be filled in and signed by the account holder
2. Introduction by an account holder with signature and account number or any person which is acceptable to the bank
3. Two copies of recent passport size photograph account holder attested by the introducer
4. One copy passport size photograph of nominee attested by the account holder
5. Valid Trade license
6. Voter’s Identity Card or National Identity Card (All partners)
7. Registered partnership deed
8. Tex Identification Number (TIN.) of all partners
9. Tex paid Certificate of all partner
10. Resolution of partners to open the account and authorization for its operation dully certified by the Managing Partner
11. Partnership letter dully signed by the all partners
12. List of Partners along with their full address and phone numbers

How to open a Proprietorship Account in a Bank

1. Account opening form of a bank to be filled in and signed by the account holder
2. Introduction by an account holder with signature and account number or any person which is accptable to the bank
3. Two copies of recent passport size photograph account holder attested by the introducer
4. One copy passport size photograph of nominee attested by the account holder
5. Valid Trade license
6. Voter’s Identity Card or National Identity Card
7. Sole proprietorship declaration
8. Tex Identification Number (TIN.)
9. Tex paid Certificate
10. Membership certificate of Business area

How to open a Personal Account in a Bank

1. Account opening form of a bank to be filled in and signed by the account holder
2. Introduction by an account holder with signature and account number or any person which is acceptable to the bank
3. Two copies of recent passport size photograph account holder attested by the introducer
4. One copy passport size photograph of nominee attested by the account holder
5. Valid Passport  (if any)
6. Voter’s Identity Card/ National Identity Card
7. Valid driving license
8. Photo Identity card / confirmation from employer (subject to the bank’s satisfaction)
9. Letter from a recognized public authority or public servant verifying the identity (Photo) of the customer to the satisfaction of bank
10. Confirmation/Letter from employer /other bank verifying there in photograph of the person along with other things.
11. Letter from employer (subject to satisfaction of the bank)
12. Tex Identification Number (TIN.)
13. Tex paid Certificate

Documents require for opening a Bank Account

Most of the people face problems in documentations for opening Bank Account. Basic required documents list are given below:
For Opening Individuals & Proprietors Bank A/C
1.Photograph two copies
2.Valid Passport  (if any)
3.Voter’s Identity Card/ National Identity Card
4.Valid driving license
5.Photo Identity card / confirmation from employer (subject to the bank’s satisfaction)
6.Letter from a recognized public authority or public servant verifying the identity (Photo) of the customer to the satisfaction of bank
7.Confirmation/Letter from employer /other bank verifying there in photograph of the person along with other things.
8.Defense identity card
9.Identity card issued by a government department / government company to its employees which includes the date of birth.
10.Telephone bill
11.Electricity bill
12.Ration card
13.Letter from employer (subject to satisfaction of the bank)
14.Tex Identification Number (TIN.)
15.Tex paid Certificate

How TO open Letter OF Credit

Letter of Credit

LETTER OF CREDIT (LC)  is an undertaking given by a Bank on behalf of its customer to pay a certain sum of money to a certain person ( Beneficiary ) on the fulfillment of certain terms and conditions as laid down in the letter of credit. Or-It is instrument issued by a Bank undertaking the payment on the fulfillment of certain terms and conditions as laid down in that letter of credit addressed to a beneficiary.
To be more precise, L C is nothing but giving advances (Investment ) to the customers.
The Uniform Customs and Practice for Documentary Credits, 2007 Revision Article– 1,ICC Publication No. – 600 ( UCP), are rules that apply
to any Documentary Credit (“ credit”)(including to the extent to which they may applicable, any “ Stand by Letter of Credit” when the text of the credit expressly indicates that it is subject to this rules. They are binding on all parties there to unless expressly modified or excluded by the credit. As per article -2  credit means any arrangement, however mean or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation.

TYPE OF LC :

1) Clean / Open L C
2) Documentary L C

CLEAN / OPEN L C :

Where there is no reference to the attachment of some papers / documents under an L C it is called clean / Open L C
DOCUMENTARY L C :
If the presentation of specified documents is obligatory / mandatory then the credit is called a documentary L/C. In practice, the Bankers deal with the documentary credits.

CLASSIFICATION OF L C :

L C may broadly be divided in to two –
(a) Revocable L C  &
(b) Irrevocable LC.

REVOCABLE L/C

It is that type of L / C which may be revoked / cancelled at any moment. There is no existence of this type of  L/C in the World. According to UCPDC, a revocable credit L/C may be amended or cancelled by the issuing bank at any moment and without prior notice to the beneficiary  before shipment of consignment against the L/C.

Irrevocable L/C:The L/C which cannot be revoked/cancelled/amended without the consent of all the parties involved in a letter of credit is called irrevocable L/C.Irrevocable L/C may either be Confirmed L/C or unconfirmed L/C:
Confirmed L/C : When an L/C is confirmed i.e. Add-confirmed is made by the 3rd Bank it is called Confirmed L/C. (Note – Add-confirmation is
the additional guarantee given by the 3rd Bank in addition to that of L/C issuing Bank.)
Unconfirmed L/C : The L/C which is not add-confirmed by the 3rd Bank, it is called Unconfirmed L/C.
L/Cs may be classified further as under in accordance with their nature of use and purpose. So, documentary credit according to payment methods be –
a) Sight credit
b) Acceptance credit
c) Deferred payment credit
a) Sight Credit: If the payment terms stipulate the presentation of sight draft it is called sight credit and the beneficiary (the seller) receives payment against the credit upon presentation of the documents, if found otherwise in order. The negotiation bank after making payment to the exporter sends the documents to issuing bank.
b) Acceptance Credit (Credit covering time drafts) : In case of acceptance credit the exporter draws a time draft either on the issuing
bank or on the importer or on another bank depending upon the credit terms. The payment date may be for example 90 days after the invoice date or the date of transport document. When the documents are presented the drafts is accepted by the drawee for payment upon maturity in terms of credit.
c) Deferred Payment Credit : The deferred payment credit differs only slightly from the acceptance credit in its effect on the beneficiary.
The main difference is the lack of a draft. Upon presentation of the proper documents the bank so authorized (the issuing or confirming bank) issues a written promise.

Step One:

If any importer wants to open a L/C, the importer is to be a customer of the bank and the importer will maintain a Current Account.


Step Two:
Importer submits an application requesting for opening L/C for US$. …….. for import of …………… (goods name) which H.S. Code ……… from India at 50% cash margin.


Importers name: M/S. Maisha Trade Syndicate
Address: 52/7,West Raja Bazar, Dhaka-1215.
Phone: ……………………………………..

Date: 03-11-2012

The Manager
ABC Bank Ltd.
Moulvi Bazar Branch,
Dhaka


Subject: Request for opening L/C for US$. …………… for import of …………… (goods name) from …………….. (Country of Origin) at ……. % cash margin.
Muhtaram,
Aslamu-Alaikum.
We like to inform you that we are maintaining a Current Account No. ……………. with your Branch. Now we like to open an L/C for US$. ………………. for import of ……………. (goods name) from at 15% cash margin  and subsequently post import   at 25% margin on landed cost.
Kindly open the L/C by 29.11.2001 as urgent basis.
Ma-assalam.
Yours faithfully

For Maisha Trade Syndicate

Enclosed: 
(1)  Proforma Invoice
(2) Insurance cover note with money receipt and VAT.

Step – Three:

Receiving the parties application, Manager refers:
(i) The application to F.Exchange Incharge, and
(ii) F.Ex-change to the import incharge (Dealing officer)

Step – Four:  
Receiving the party’s application (Party’s own Pad), the concern dealing officer supply a prescribed printed L/C application form, LCAF, IMP Form, and a set of charge documents.

Step – Five:
 To obtain the following papers/documents, importer duly filled in, signed and submitted the document to the L/C opening Bank.
       Importer submitted papers are as follows:
a)                  L/C application form with Tk.150/- adhesive stamp.
b)                  LCAF
c)                  Proforma Invoice / indent / purchase order / contract having details of merchandise, price delivery & payment terms etc.
d)                 Marine Insurance cover Note with money receipt issued by approved Insurance Co. in Bangladesh in favor of the bank covering the usual marine risk. Marine Insurance should cover the L/C value plus 10%.
e)                  IMP Form.
f)                   Murabaha agreement & other Charge Documents.
g)                  Valid Trade Licence.
h)                  Valid IRC (Import registration certificate)
i)                    Income Tax Clearance Declaration with TIN.
j)                    Membership Certificate from Trade Association.

Other Papers Required:
i)                    Photo of the Party (Directors) in case of Ltd. Co.
ii)                   Resolution of the Board in case of Limited Co.
iii)                Article & Memorandum of Association in case of Limited Co.
iv)                Statement of Assets & liabilities of Limited Co.
v)                  Three years Audit Report of Limited Co.
vi)                Partnership Deed in case of partnership firm.
vii)              Credit report of the Importer.
viii)            Confidential Report on financial of the Foreign Supplier.
ix)                Undertaking to arrange foreign currency for payment.
x)                  Ownership documents/ rent receipt of place of business.

Confidential Report of Beneficiary:
According to exchange control regulations Bank is required to obtain confidential report of the beneficiary before opening L/C, if the amount is exceeded by Tk.5.00 lac against indent & over Tk.2.00 lac against proforma invoice. Bank can write to their foreign correspondents to supply the Confidential Report.

Step – Six:
To scrutinize the submitted documents, if the banker satisfied, the dealing officer made a L/C proposal for opening an L/C.

Step: Seven :
 If the branch Manager agreed to open the L/C, the dealing officer posted in a L/C opening register and write the controlling L/C No. to the L/C opening application Form and others related papers.
                       Columns of L/C Opening Register:

•      Name & Address of Applicant

•     Name & Address of Beneficiary

•     Amount(F.C. & Taka)

•     DescriptionOf goods

•     Validity Rate of Margin & Amount Charges (Commission,Postage, Telex, FCC, Others, Total)

•      Liability Amount

•     LCAF No and Regd. No.

•     Remarks

•     Initial of dealing officer

Step: Eight :
After posting in the L/C opening register, we shall have to endorse the LCA Form.
Endorsement of LCAF:
LCAF Value:
L/C No. ………………….. date: ………………..
Amount ………………….
Rate …………… (B.C.selling rate)
Tk. …………….
……………
Authorised officer

Step: Nine:
    Voucher to be Passed:
(1)       Dr.  Customers Liability for opening L/C (Cash)
Cr.  Banker’s Liability for opening L/C (Cash)
(2)     Dr.  Assets as per contra on L/C General (Cash)
Cr.  Liability as per contra on L/C General (Cash)

Banking Diploma procedure

Banking Diploma Examination Under The Institute of Bankers, Bangladesh

For first time an applicant need to fill up both Banking Diploma Enrollment Form and Banking Diploma Exam Entry Form with 3 copies of passport size photograph (1 for enrollment, 2 for exam entry) and a photocopy of H.S.C Exam Certificate.

After first time enrollment an applicant need to fill up only Banking Diploma Exam Entry Form and mention the previous passed records (subjects) and the subjects intended to appear in

Fees Details:

1. Banking Diploma Enrollment Form                               =20.00 BDT
2. Banking Diploma Exam Entry Form                              =20.00 BDT
3. Banking Diploma Examination Fees                              =1000.00 BDT
4. Late Payment Fees                                                          =50.00 BDT