Savings Bank account (SB Account) is a form of demand deposit account, opened mainly for the purpose of saving and not for any business purpose. Banks are permitted to credit the interest to the account on a regular basis, with regard to the savings bank accounts frozen by the enforcement authorities.The acceptance of interest free deposits in…
A savings /fixed / recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian. Banks in India have freedom to fix minimum age at which they will allow a minor to operate his account in the single name. As a result, a minor can open and…
Dealing with accounts of mentally ill or lunatic or an insolvent persons remains a delicate job for bankers. Whenever bankers learn that one of their customers is incapable of operating the account due to mental incapacity the operation in such a customer’s account shall be immediately suspended. While dealing with such accounts, bankers need be…
RBI has been imposing heavy penalties on banks who have not complied or the account opened in contravention of various directions and instruction issued by it, which includes failure to obtain adequate documents for opening accounts, failure to carry out identification procedures, failure to examine control structure of entities. The process of identification of person/s…
FCNR (B) deposits and NRE deposits can be opened by Non-Resident Indians or persons of Indian Origin (PIO). The difference between FCNR (B) deposits and NRE deposits is that the FCNR-B (Bank) deposits are maintained only in Foreign Currencies term deposits and maturity of these deposits are payable in terms of Foreign currencies including interest accrued…
EEFC (‘Exchange Earners’ Foreign Currency) Account is a facility available to all categories of exchange earners including SEZ developers (except SEZ Units). In this scheme of bank accounts, the exchange earners (resident of India) can maintain their account in any of the permitted foreign currency viz. USD, GBP, Euro, JPY etc. In the other words…