Joint Accounts

It is also possible that more than one individual come togetherand open a bank account. These are called joint accounts. In these cases, for practical reaons, the account holders will have to give instructions to the bank about who would be operating the account. Such accounts con be operated by one of the account holders or jointly by two or more account holders. The operating instructions given by the joint account holders should be explicit, unambiguous and would be accepted as per the original wish onfirmed at the time of opening of the account. Normally the type of instructions could be

(i) ‘either or survivor’, wherein the account can be operated by any one of the joint holders (this means that both of them have the right to operate and it is enough if one of them signs the cheques etc) and, in the event of closure of account, the deposit can be repaid to any one or the survivor’,

(ii) ‘former or survivor’, wherein the account will be operated only by the first named depositor and the balance will be payable to only the first named depositor or if the first named is deceased, the survivor as the case may be,

(iii) ‘both ointIy or survivor’ wherein the account will be operated jointly and the money repayable to both jointly or the survivor, if one of the joint holders is deceased

(iv) ‘any two jointly or last survivor’ wherein the number of account holders is more than two and any two will operate the account etc.