Is it compulsory to open the account in banks with initial deposit as cash only? Examine.

Customers offer initial deposit in cash and fulfill certain relative formalities which complete the relationship for opening the account in banks. Generally, banks require customers to deposit an initial amount in the bank. Legally it is not compulsory to open the account with cash only; the initial entry may be by collecting instrument payable to the customer. As per practice, the banks open the account by reflecting cash entry in the account. Further, certain banks allow opening of bank accounts without any minimum deposit. Example, there is no requirement for any initial deposit for opening a Basic Savings Bank Deposit Account under Pradhan Mantri Jan Dhan Yojana.