Client Account Agreement Template for India

The Client Account Agreement serves as the foundational document governing the banker-customer relationship in India. It is essential for establishing new banking relationships and is required by regulatory authorities including the Reserve Bank of India (RBI). This agreement encompasses comprehensive terms for account operations, banking services, compliance requirements, and customer obligations. It incorporates mandatory provisions under Indian banking laws, including KYC norms, anti-money laundering requirements, and customer protection measures. The document is designed to protect both the bank's and customer's interests while ensuring compliance with Indian banking regulations, financial laws, and RBI directives. It is typically used when opening new accounts, updating existing account relationships, or establishing additional banking services.

1. Parties: Identification of the bank and the client, including registered addresses and registration details

2. Background: Context of the agreement and brief description of the banking relationship to be established

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Account Opening and Operation: Terms governing account opening, maintenance, and operational procedures

5. KYC and Due Diligence: Requirements for customer identification, verification, and ongoing due diligence as per RBI guidelines

6. Services and Features: Description of basic banking services, account features, and facilities provided

7. Fees and Charges: Structure and details of applicable fees, charges, and minimum balance requirements

8. Client Obligations: Client's responsibilities, including information updates and compliance requirements

9. Bank's Rights and Obligations: Bank's duties, responsibilities, and rights in managing the account

10. Security and Access: Security measures, access protocols, and authentication procedures

11. Communications: Methods and protocols for communications between bank and client

12. Privacy and Data Protection: Handling of client information and data protection measures

13. Anti-Money Laundering Compliance: AML requirements and reporting obligations

14. Termination: Conditions and procedures for account closure or agreement termination

15. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

16. General Provisions: Standard clauses including force majeure, severability, and entire agreement