One of the key roles of public and private banks is to enable clients to open accounts to hold money. The length and other features of the bank account number are not at all random and have a certain legal basis.
Bank account concept
Officially, a bank account is a legal agreement between a bank and an individual or legal entity, the main subject of which is money. In accordance with the agreement, the client receives the right to accumulate his own finances in the current bank and the ability to refer to them at any (or certain) moment. Funds are placed among the internal assets of the organization, which in turn obliges to maintain the confidentiality of the concluded agreement.
The bank account opening agreement has several characteristics. First of all, it is intended for accounting and circulation of the client's funds, which acts as their full owner. In this case, the agreement reflects the bank's obligations to the owner of the "cell" for the funds placed in it. These obligations depend on the type of account, and in modern banking practice there are many varieties of the corresponding service.
Types of bank accounts
Individuals are most often given the opportunity to open accounts of two types - current and deposit. The first ones are intended for settlement operations, and the second ones - for the accumulation of funds. Free access is provided to the current account, while deposit "cells" imply a long-term preservation of money with the possibility of receiving it after a certain period, including interest accrued by the bank.
Legal entities can open a checking, temporary or current account. The function of the first one is the crediting of income and other receipts, as well as transfers of funds for various purposes. The second is usually intended to accumulate the authorized capital of a newly created company. As for the current one, it is the main checking account for non-profit organizations.
There are also budget accounts, the right to open which have enterprises that receive targeted funds from government agencies. Finally, there are correspondent accounts owned by the bank and placed with various credit institutions, including those abroad. International money transfers are made through them on special conditions.
The generally accepted condition in the world is that a bank account must be twenty digits long. Most of them are not chosen randomly, but for a specific purpose. First of all, it is necessary for the banks themselves, which are able to record data about each client. In addition, knowing the procedure and specifics of assigning a number, it becomes more difficult to make a mistake when using an account to make payments and other financial transactions.
Features of assigning an account number
Any bank account number consists of five blocks. The first includes five digits indicating the type of owner of the "cell". For example, the number 40702 means that the owner is a non-governmental commercial organization, and 40802 is an individual entrepreneur. The relevant rules are governed by a special internal regulation of the bank on accounting (302-P).
The next three-digit combination indicates the currency that is stored in the account. The most common values in Russian practice are 810 (ruble), 840 (dollar) and 978 (euro). Next comes the key digit (check digit) for uniqueizing the account and checking it by electronic systems. The four digits immediately after it indicate the bank branch number. Finally, the final seven digital characters are most often the serial number of the current personal account, however, credit institutions have the right to independently choose their order and purpose.
