PROHIBITION AGAINST OPEINING OF SAVINGS BANK ACCOUNTS
IN THE NAME OF CERTAIN BODIES/ORGANISATIONS

(Vide paragraph 9.1.3 Manual of Instructions (June 1998): Department of Banking Operations and Development, Reserve Bank of India)

i) Savings deposit account cannot be opened by banks in the name of:

• Government departments
• Bodies depending upon budgetary allocations for performance of their functions.
• Municipal Corporations or Municipal Committees
• Panchayat Samitis
• State Housing Boards
• Water and Sewerage/Drainage Boards
• State Text Book Publishing Corporations
• Societies
• Metropolitan Development Authority
• State/District Level Housing Co-op. Societies, etc.
• Any trading, business or professional concern (e.g. firms of Chartered Accountants, Lawyers, etc.) whether such concern is a proprietary or a partnership firm or a company or an association
• Political Party

ii) The above prohibition will not apply in the case of the following organisations/ agencies :

• Primary Co-operative Credit Society which is being financed by the bank
• Small Farmers’ Development Agencies (SFDA)/Fish Farmers’ Development Agencies (FFDAs)
• Marginal Farmers’ and Agricultural Labourers’ Agencies (MFALAs)
• Drought Prone Areas Programme (DPAP)
• District Development Authority (DDA)
• District Rural Development Agency/Society (DRDA/DADS)
• Integrated Rural Development Programme (IRDP)/Development of Women and Children in Rural Areas (DWCRA)/Self-Help Groups (SHGs), registered or unregistered, which are engaged in promoting savings habit among their members/Farmers Clubs-Vikas Volunteer Vahini (VVV), informal groups of rural farmers or entrepreneur.
• Integrated Tribal Development Agency (ITDA)
• Agricultural Produce Market Committees
• Khadi and Village Industries Boards
• Societies registered under the Societies Registration Act, 1860 or any other corresponding law in force in State or a Union Territory.
• Companies governed by the Companies Act, 1956 which have been licensed by the Central Government under Section 25 of the said Act, or under the corresponding provision in the Indian Companies Act, 1913 and permitted, not to add to their names the words ‘Limited’ or the words ‘Private Limited’
• Institutions other than those mentioned in clause (i) above and whose entire income is exempt from payment of income-tax under the Income-Tax Act, 1961.
• Zilla Parishads/Gram Panchayats only in respect of Jawahar Rojgar Yojana Funds
• Nagar Panchayats, Nagar Palikas and Municipal bodies in relation to funds (Central assistance + State share) given under Nehru Rozgar Yojana towards the components of (i) Subsidy and (ii) Training and Infrastructure of the Scheme of Urban Micro Enterprise (SUME) and Scheme of Urban Wage Employment (SUWE) and interest earned on deposits under both the components of SUME and on deposits under SUWE subject, however, to the condition that no such account shall be opened with a bank other than public sector bank.