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Sumit (Employee)     06 May 2011

VALIDITY OF CA CERTIFICATE FOR CURRENT ACCOUNT OPEN

I want to know the following:- 1. Whether Chartered Accountant's Certificate "certifying that he knows a particular person carrying on a particular business for the last so many months and the bank may open current account based on this certificate" is acceptable as the second document in addition to registration with the Govt. Authority or will this CA Certificate comes under the Customer Acceptance Policy of the bank? 2. Whether CA Certificate comes under one of the mandatory documents to be taken by the bank for opening of current account OR the bank has to take other documents as well as mentioned in the said circular issued by RBI? 3. In case this CA Certificate is acceptable by the banks for opening of current account then in case if it is written in the CA Certificate that he knows that particular person for the last 1 month then whether Bank can open the current account only on one month basis or bank has to check whether the CA knows the person for atleast 6 months since in case of introducer, the introducer should be having account with the bank for atleast 6 months? You are requested to kindly reply at the earliest for which i shall be highly thankful to you. Also provide the relevant case laws if any on similar issues. Regards Sumit


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 3 Replies

V. VASUDEVAN (LEGAL COUNSEL)     06 May 2011

If a person is carrying out a business, he would have at least one of the following documents: - Service Tax Regn (if engged in service) or VAT Registration in case of trading and Trade License, if the local law provides for this! - One of these document can support. Also how was the business transactions carried so far - even if it was through savings bank, the documentations can be provided in support!

Vasudevan

Sumit (Employee)     07 May 2011

Thanks for writing. I want to clarify that this is a case of new business and secondly in addition to VAT/Service Tax registration whether CA Certificate can be accepted as valid document for current account open. Please reply from the point of RBI and not the individual banks since they accept the CA Certificate.

RAJU O.F., (Advocate)     08 May 2011

Any respectable person known to the bank can introduce a new customer opening a Current a/c; the person is not necessarily be a Chartered Accountant.


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