What does mode of operation mean on a bank form?
Mode of operation specifies how a Bank account will be operated and by whom. When you are opening a savings bank account, you can specify either you can operate it by yourself or do it jointly with some one. If you mentioned mode of operation as Single, the money can be drawn by only you. If you mentioned as joint, both you and your partner have to sign jointly on any cheques.
There are different types of mode of operation of accounts available in Indian Banking system. We will see them one by one.
- Single Account
- Jointly or Survivor
- Either or Survivor
- Any or Survivor
- Former or Survivor
- Latter or Survivor
Single Account :-
As seen earlier, when an account is opened in the name of an individual it is known as single account. The mode of operation for a single account is SINGLE. Only the account holder can instruct the bank for different transaction.
The bank account will be operated by both or all account holders jointly. For any transaction to take place in jointly account all the joint account holders needs to be signed. If any of the account holder dies, then the jointly account is closed after paying the balance to the survivor. Survivor cannot continue the same account.
Jointly or Survivor :-
It is same like Jointly above, except if any of the joint account holder dies, Joint Account cannot be closed and all the rights to operate account will be given to the other account holder. Alternatively, the proceeds of the account can be transferred to his/her name.
Either or Survivor :-
It is the most popular modes of operating joint account. In this Mode of account both can access the account and transfer the funds. on death of anyone account holder, the surviving can continue the account or get the balance transferred to his name.
Any or Survivor :-
This is similar to Either or Survivor option above. Only difference is such accounts are opened when there are more than two account holders. In case of death of anyone of the account holders, the remaining survivors can continue to operate the account. All the rules applies same as “Either or Survivor”.
Former or Survivor :-
In this type of joint account, only the primary account holder can operate the account till his death. The second account holder can operate the account only on death of the primary holder . The survivor can also get the balance transferred to his/her name.
Latter or Survivor :-
It is similar to Former or Survivor, except that only Secondary account holder will have rights to operate the account till his death.
Note:- All the information provided above is taken from various sources. Please check with your bank for more accurate details before making any decision.