Clarification on Types of Accounts and Conditions Under Which Customer Signature Is Not Required

Bank of Israel
Banking Supervision Department
Bank–Customer Division
Regulation (Bank–Customer) Unit
January 4, 2015
Circular Number C-06-2449
To:
The banking corporations
Issue: Types of accounts and conditions under which the customer’s signature on an agreement is not required

1. Section 3(a) of the Banking (Service to the Customer)(Proper Disclosure and
   Provision of Documents) Rules, 5752–1992 (hereinafter—the Proper Disclosure Rules) details the types of agreement between a banking corporation and a customer that the banking corporation must put in writing and make available to the customer to review before signing.
2. In accordance with Section 3(a1) of the Proper Disclosure Rules, the Supervisor of
   Banks is permitted to set out the types of account and conditions under which the customer’s signature on the agreement is not required from among the types detailed in the aforementioned Section 3(a).
3. In view of the foregoing, we hereby clarify that regarding the agreements enumerated
   below, the customer’s signature will not be required, provided that the customer is able to confirm—in the appropriate place on the banking corporation’s website—that he has been given the required opportunity to view the agreement:
   a. The agreement on general terms of business as stated in Section 3(a)(1) or the agreement to open and administer a current account as stated in Section 3(a)(2) of the Proper Disclosure Rules, including the stated agreement that includes general terms for the provision of various banking services enumerated in Section 3(a) of the Proper Disclosure Rules, which is opened online in accordance with Proper Conduct of Banking Business Directive 418; b. An agreement to deposit funds for a set period, for a period that exceeds one￾year, as stated in Section 3(a)(3) of the Proper Disclosure Rules;
   c. An agreement regarding telephone instructions, as stated in Section 3(a)(9) of
   the Proper Disclosure Rules.
4. In regard to Circular 2396-6 “Form of General Conditions for Administering
   Accounts”, in the circumstances of opening an online account, in accordance with

Bank of Israel
Banking Supervision Department
Bank–Customer Division
Regulation (Bank–Customer) Unit
Proper Conduct of Banking Business Directive 418, instead of the customer’s signature, it is possible to obtain the customer’s approval as stated in Section 3 of this Circular.
5. This Circular is effective from the date of its publication.
Sincerely,
David Zaken
Supervisor of Banks