How do Development Banks contribute to the development of a country

 

In  places  like  BD,  a  majority  of  the  applicants  for  financial  assistance  from  the  DFI‘s  in  the

initial  stages  were  existing  large  industrial  houses,  or  Managing  agency  firms.  These  institutions had   resources   of   men,   material   and   money   and   were   therefore,   able   to   conceive,   plan   and implement  new  or  expansion  projects  successfully.  Therefore,  there  was  no  problem  of  arrears. In  the  wake  of  socialist  policies  pursued  by  these  newly  independent  states,  further  growth  of large   industrial   houses   and   managing   agency   firms   through   DFI   assistance   was   considered monopolistic   and   exploitative   of   the   majority   by   the   minority.   These   were   conceived   as institution  reminiscent  of  the  former  British  regime.  This  attitude  led  to  a  greater  intervention  of the state in the regulation and operation of DFI‘s, which in almost all cases were state owned.

Describe the procedure for opening the following types of accounts, Joint Stock Company, Partnership Firm

 Joint Stock Company

   Bank’s prescribed Account Opening application form,

   Certified copy of the Memorandum & Articles of Association of the Company,

   Certificate of incorporation,

   Certificate of commencement of Business (For Public Limited Companies only),

      Extract of the Board resolution sanctioning the account opening and signing authority,

   List of the Director with address in specified from,

   Photograph of the signatories,

   Copy of valid Trade License,

   Introducer’s signature in the A/C opening form and at the back of the photograph(s) of Account holder(s),

   List of names with Appointment letter and Specimen Signature of the Persons authorized to operate the Account, and

      The personal identity of all the directors or beneficial owner(s) proprietor of the Firm has to be

established by any of the documents as mentioned in Individual or Joint Customer category

 

Partnership Firm

 

          Bank’s prescribed Account Opening application form signed by the partners in front of

respective bank personnel,

          Certified copy of Partnership Deed/ Agreement,

          List of the Partners with Address,

          Extract of resolution of the partners Meeting,

          Copy of valid Trade License,

          Photograph of the signatories/ Partners,

          Specimen signature card (To be signed by the signatories in front of respective bank personnel,

          Introducer’s signature in the A/C opening form and at the back of the photograph(s) of Account

holder(s),

     Identity of all Partners/ Directors must be verified in line with the requirements for personal customers. Where a formal partnership agreement exists, a mandate from the partnership

authorizing the opening of an account and conferring authority on those who will operate it should be obtained,

          Evidence of the trading address of the business or partnership should be obtained and a copy

of the latest report and accounts (audited where applicable), and

     An explanation of the nature of the business or partnership should be ascertained (but not necessarily verified from a partnership deed) to ensure that it has a legitimate purpose.

Customer

 A person who has some sort of account with the bank (may be fixed, current or savings). Frequency of

transaction is in the account is not essential. One single transaction is good enough. Banker-customer relationship is a contractual. Availing of DD/TT facilities and depositing valuables for safe custody and other services occasionally without having any account with the bank are not enough to become a customer.

 

Banker-Customer: General Relationship.

A banker, in course of his day to day business, enters into different kinds of relationship with his customers

and clients. These relationships may be broadly categorized as (a) General Relationship and (b) Special Relationship. The General Relationship between a banker and customer differs depending on the basis of types of dealing they undertake between themselves. Banker-customer is contractual relationship. Generally the following are the major forms of relationships between a banker and his customers: (a) Debtor-Creditor, (b) Principal-Agent, (c) Trustee-Beneficiary,  (d) Bailor-Bailee and (e) Lessor-Lessee.