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Huf bank accounts

SHASHANK SHEKHAR DASH (CHIEF MANAGER) (56 Points)

15 January 2012

In a Bank Account opened by a HUF, can the major co-parcerners be allowed to operate the account in addition to KARTA of HUF.

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3 Replies

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 16 January 2012

It is the mutual understanding of HUF, however, Karta is generally allowed to do so.what you mean for "operate the account"any one can deposit the money..any one can withdraw money through atm card..only one problem is issue cheque/issue withdraw slip. surely its can do by the account holder only.,if its huf also there should be a account holder. whole family can not be as "account holder" otherwise whole family should be come to every transaction.

It is the mutual understanding of HUF, however, Karta is generally allowed to do so.

SHASHANK SHEKHAR DASH (CHIEF MANAGER) (56 Points)
Replied 16 January 2012

I mean in a HUF account maintained in Bank, can major co-parceners along with the Karta be allowed to draw cheques or withdraw money.

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 17 January 2012

The bank will allow the such persons to operate the bank account, as per the instructions given by the instruction of the karta.

HUF concept is not known to most of the bankers and hence they allow only karta to operate.

If any person is Depositing money, taking money in ATM are not called as operating the account.If some other person is doing the same it is deemed that it is done in the name of the account holder, who is authorized to operate.