While opening the Current Accounts for Clubs, Societies Associations, etc. the customers need to submit ‘know your customer’ related official valid documents of the organisations and natural persons behind the operations of such entities. In addition to KYC-related documents, let us now examine, what are the other requirements for opening captioned accounts. Accounts of Clubs,…
Let us first understand the meaning of Dormant Account and Inoperative account. Dormant Account A Savings Bank account or Current account becomes ‘Dormant Account’ if it is not operated during the previous 12 months. Inoperative Account An SB or Current account becomes ‘Dormant Account’ if the account is not operated during the previous 12 months.…
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…
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…