Meaning of Pass Book

Pass book is an important book in the operation of a bank account. It contains a copy of the customer’s ledger account as it appears in the banker’s books. It is an exact extract or copy of the customer’s account in the bank’s ledger, as on a particular date. It is, in other words, a record of dealings between the customer and the bank. It is written by the bank from its own records. It is supplied by the bank to its customer free of charge. It is meant for the information of the customer. It indicates to him the “state of his account” in the bank. The customer sends it periodically to the bank so that upto date entries may be recorded by the bank. As it passes periodically between the banker and the customer, it is called a “Pass Book.”

Every entry made in pass book is signed by a responsible official of the bank. Some big banks supply periodical statements of account in place of the pass book. In case of foreign accounts, some banks make use of photography to save the labor of writing statements of accounts. The photo copies of the customer’s account are sent to the customers for their approval.