A Savings Bank account, commonly referred to as an SB account, is a type of demand deposit account designed to facilitate frequent financial transactions. These accounts are primarily used by individuals to securely store their money while maintaining convenient access for daily expenses and other financial requirements. Savings accounts also offer interest on the account…
The closure of a bank account requires adherence to specific procedures to ensure compliance with banking regulations and institutional protocols. The following outlines the steps and requirements involved in the process: 1. Submission of a Written Request A written application must be submitted by the account holder to the branch where the account is maintained.…
Current accounts or SB accounts may be transferred from one branch of a bank to another without incurring any charges. When an account holder wishes to initiate such a transfer, a written request must be submitted—either to the current branch or the branch to which the account is to be transferred. Any unused cheque leaves…
Every applicant for opening current account must provide specific documents relevant to their entity type. Additionally, banks are required to perform a comprehensive Know Your Customer (KYC) verification for the entity and its key stakeholders, such as the proprietor, partners, or directors. KYC involves several steps to (i) establish customer identity (ii) understand the nature…
Generally, anyone who is of legal age (18 years or older) and meets the bank’s eligibility criteria can open a savings account. Minors can also open savings accounts, usually through a guardian or jointly with a parent. Entities like associations, trusts, and societies may also be eligible, but they must meet specific requirements. Savings Bank…
Current accounts or SB account not operated during the past six months will be treated as dormant accounts. In March every year all dormant accounts in which there had been no operation for a total period of two years or more (including the period reckoned to classify them as dormant) will be transferred to inoperative…
The documentation necessary to open a current account varies based on the legal structure of the business entity—whether it is a sole proprietorship, partnership firm, company, trust, society, or government body. Each applicant must provide specific documents relevant to their entity type. Additionally, banks are required to perform a comprehensive Know Your Customer (KYC) verification…
Settlement of Claims in Respect of Missing Persons Presumed Dead: A Formal Overview Banks in India typically settle claims related to missing persons who are presumed dead by adhering to established legal provisions and regulatory guidelines, primarily those issued by the Reserve Bank of India (RBI). When a person has been missing for a legally…
Government departments or semi Government departments need a bank account to carry out the financial transactions of the departments. Government business like Salary payments, Pension payments,Fee collection, tax collection,PPF, Sukanya samriddhi, Senior citizen savings scheme,etc.are routed through banks.Most of the public sector banks eying for government business as they they get huge amount of deposits…
There are two possibilities in a bank account maintained by a customer viz. (i) a deposit account is opened in a bank with a valid nomination or with the survivorship clause like ‘either or survivor’, or ‘anyone or survivor’, or ‘former or survivor’ or ‘latter or survivor’ etc. (ii) A deposit account is opened in…