Wadiah-Demand Deposit Account, also called Wadiah-Current Account or Wadiah-Checking Account, is a non-interest-bearing deposit account that is opened and operated by literate customers whose trading activity and cash movement justifies the need for such account. It is an account that is regarded as trusts or safekeeping and offers the depositors’ safety of their money against the bank’s guarantee to return their funds on demand.
Features of Wadiah Current Account
- Bank gives the guarantee to return the full amount on demand at its own risk (depositor will not share the risk).
- Bank can invest this deposited fund with the permission of the depositor.
- During banking hour multiple deposit & withdrawal by cheque is permitted and it will not have any impact on profit calculation, as it is a non-profit bearing product. In this regard, all clauses of Negotiable Instrument Act will be applicable
Eligibility for opening the account
- Individual above 18 years of age
- Two or more persons jointly
- Sole Proprietorship Concern
- Partnership Firm
- Govt. / Semi-Govt. Offices / Corporations / Autonomous bodies.
- Limited Companies (Both Private and Public)
- Societies / Clubs / Associations / Local Bodies