Banks offer commercial service to individuals, business organizations and other organizations like church, club, mosque, library etc. Among these services bank checking account is one.
Bank checking account means depositing money into bank by clients.
Bank uses documentary records for keeping account of deposits and withdrawals as per necessity of the depositors.
Signature Card: The bank supplies a signature card to a new depositor. The depositor fills up the signature card and puts his specimen signature on it. The depositor can withdraw money from bank by putting his specimen signature of this card on the cheque.
Bank retains this card and at the time of payment of cheque verifies the signature of the depositor with the signature recorded in the signature card. But in all cases the bank does not verify the signature of the cheque with that of the signature card.
Generally in case of any suspicion or payment of big amount, the signature on the cheque is verified with the specimen signature of the signature card.
Deposit slips: Depositors are to fill up deposit slip or ticket for depositing money into bank account. A deposit slip is a printed sheet of paper containing multiple columns.
The depositor fills up this deposit slip properly and deposits it along with cash or cheque to the bank.
At the time of filling up the deposit slip a depositor has to write down bank account number, amount, date in the deposit slip very carefully. The bank gives him a receipt stating the date and the amount of deposited money.
Cheque: A cheque is a written order to the bank by the issuer of the cheque to pay a certain amount of money to a party or a payee. Therefore, each cheque transaction involves three parties – bank, payee and issuer.