Current interest free Current interest free

Current account instruction:

Ordinary current account: It is a type of interest-free  deposit that is opened by the bank for customers and signing the check, the customer gives an instruction for payment of deposit (partly or entirely) as much as the amount of deposit in the order of bearer or a certain person or to his order to the bank signing the corresponding check.

Core Current Account:

It is like an ordinary current account that is opened at the request of the customer in his name by the bank and issuing a check, the customer gives an instruction for payment of balance, partly or entirely, as much as the amount of account balance in order of bearer, or a certain person or by order for the bank. Payment to and withdrawal from the said account is possible at all branches.

 

General conditions for opening a current account:

  1. Ability to read and to write:

Note: While opening a current account for the blind, illiterate and disabled persons, the applicant should have a seal and introduce one person as trustee.

2. References

Introducing one person who holds a current account or he/she is well-known for the branch manager as reference; the following persons do not require a reference to open a current account in case of obtaining confirmation:

Physicians, lawyers and official experts to the judiciary; they may obtain a confirmation from the I.R. Iran Medical Council, Bar Association and Official Experts Association and open a current account without introducing any person as reference.

Note: For foreign nationals, it is necessary to introduce a reference from among the bank customers and/or an individual confirmed by branch manager or introducing one person from governmental organizations or the corresponding foreign embassy confirming his/her identity and confirmation of the applicant for opening a current account is compulsory.  

3- No record of bounced checks at banking network according to the inquiry from the Central Bank for the applicant and his lawyer;

4- The applicant should be 18 years old or submission of a legal maturity order issued by the court;

5-  Opening an account on behalf of persons by accepting general conditions of account opening is free of impediment.

6- Opening an account for legal entities by authorized signatories is free of impediment.

7- Opening a joint account between two or several persons with the bank is free of impediment.

8- For any natural entity, one current account is opened.

*Tax stamp fee: The corresponding tax stamp fee is borne by the bank. However, in case after opening the account, the customer is willing to transfer the account or make it as a joint account, the corresponding tax stamp fee is borne by the customer.

 

Requirements for opening a current account for natural entities:

The bank may open a current account for a natural entity in case of realization of the following requirements:

  1. The applicant is 18 years old or submission of a legal maturity order issued by the court;
  2. No record of bounced check;
  3. Assurance about fulfillment of contents of Article 21 of Check Issuance Law;

 

Note: Record of bounced check (Article 21 of Check Issuance Law): The corresponding information to bounced checks not nullified is available at information system of the Central Bank.

  1. No current liability;
  2. Introducing an individual as lawyer of a specific person;

The bank is obligated that upon opening a current account for a specific person, it would make arrangements for introducing the seal of the specific person with signature of the lawyer who is authorized to sign the check on his behalf will be introduced to the bank at time of opening the account. In this case, the checks issued by the specific person will bear his seal and signature of the person introduced according to the respective sample. 

Note: For foreign nationals, further to the aforesaid requirements, it is necessary to have a valid passport with permanent residence permit and work permit.

  • The least average for opening the current account for natural entities is given as IRR 100,000.
  • Prohibition from opening over one individual current account and one joint current account (simultaneously or non-simultaneously) is for natural entities only.
  • Opening a joint current account between natural and legal entities or jointly is free of impediment.
  • Opening an account on behalf of individuals and/or using the account is free of impediment according to the governing rules of attorneyship.
  • Concerning the fact that according to Check Issuance Law and Commercial Law, there is no limitation for period of presentation of check and claiming its amount at the bank in whose favor the check is issued, as of corresponding date indicated on each check and at expedient time the beneficiary may refer to bank to cash the said check.

 

Requirements of opening a current account by legal entities:

  • The bank may open a current account for legal entities in case of fulfillment of the following requirements:
  1. Fulfillment of requirements for opening a current account for natural entities as members of Board of Directors and real entities who are the members of Board of Directors representing other legal entities and natural entities who are authorized signatories representing the legal entities;
  2. Legal entities should be registered with Department for Registration of Companies inside the nation or be under registration process.
  3. Submission of evidentiary documents for establishment and legal duties and responsibilities of authorized signatories of the legal entity rose by specific rules and requires no registration with Department for Registration of Companies;

Note: Legal entities which have been established according to specific rules refer to the entities which are erected according to the law enacted by Islamic Consultative Assembly such as Relief Foundation, Housing Foundation and the ones;

  1. Submission of confirmation of Ministry of Foreign Affairs for embassies and international organizations;
  2. No record of bounced checks;
  3. Assurance about full observance of the contents of Article 21 of Check Issuance Law;
  4. No current liability
  • Opening a current account for branches of companies should be done by their head office. The applicant may delegate right of withdrawal from the account to the representative/s at the company’s branch if prescribed by the company’s articles of association.
  • Opening a current account in the name of the companies representative offices should be done in consideration of entity of the representative (natural or legal entity) within the framework of prescribed criteria.
  • Opening a current account for the institutions or organizations which have not been registered with Department for Registration of Companies is not authorized.
  • Least balance for opening the current account by legal entities is given as IRR 1000,000.
  • Opening a joint current account between natural and legal entities is free of impediment.

 

Process of delivery of checkbook to customer:

  • Delivery of checkbook to the customer is pending on fulfillment of the following requirements:
  1. Receipt of a written or electronic request of customer or his/her lawyer for issuance and delivery of checkbook;
  2. Assurance about eligibility of customer for primary receipt or re-receipt of checkbook only through the core system;
  3. Submission of an official invitation bearing number, date, authorized signatory and seal for receipt of the checkbook at the mailing address of the customer;
  4. Submission of the checkbook to customer or his/her lawyer by the bank after obtaining the said invitation and confirmation of his/her identity;
  • Granting the checkbook to "temporary current account" is not allowed.
  • Delivery of checkbook to the customer with record of bounced check, noncurrent liability and/or those who are subjects to Article 7 of Check Issuance Law is forbidden.
  • Delivery of checkbook to the customer whose current account has been blocked as per judicial order is forbidden.
  • Delivery of new checkbook is pending on return of at least 4/5 of pages of last checkbook of the customer issued or notified to the bank.

Note: Fulfillment of the said 4/5 for all customers (ordinary, specific, accredited and the ones) is mandatory.

 

Cancellation of current interest-free  accounts with revolving, bounced and blocked checks:

  1. Cancellation of current interest-free  accounts which are not blocked and have no bounced checks which have not been nullified, as acknowledged by the account holder, some of checks have been lost or they are not accessed due to any reason, at the request of the accountholder, is free of impediment. In this case, it is obligatory to obtain a letter of undertaking from accountholder/s for accepting the responsibility for his/her revolving checks presented to the bank as well as certificate for non-payment to probable beneficiaries of these checks and submission of the said information to the Central Bank of Islamic Republic of Iran.
  2. Closing the current interest-free  account which is not blocked if certificate of non-payment has been issued for the corresponding account check/s and no pleading has been filed to the corresponding date, is free of impediment at the request of accountholder by obtaining the said letter of undertaking. Obviously, closing the account in this condition does not prevent referral of the beneficiary or check holders to judicial courts and it doesnot release the check issuing party and accountholder from the corresponding responsibility.
  3. In case of issuance of an order by official authorities such as judicial authorities or registration enforcement authorities, the concerned account will be cancelled and the corresponding amount will be confiscated by virtue of the corresponding conditions and criteria.
  4. In case of death of accountholder, as long as the case has not been informed to the branch, payment of the corresponding checks issued is borne by the account of the decedent and no responsibility is assumed by the bank. Immediately upon information of death of the accountholder, the branch shall close the account and eventually, after submission of the legal documents by the heirs (probate and legacy tax payment certificate), the corresponding amounts will be paid to the heirs and the said account will be closed (In accordance with the aforesaid clauses 1 and 2).