Important rules related to bank account of a minor
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 the freedom to fix the minimum age at which they will allow a minor to operate his account in a single name. As a result, a minor…
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Maintenance of Balance in Savings Bank Accounts and Interest Payment
Maintaining a minimum balance in a savings bank account is generally required to receive interest payments and to avoid penalties. Banks may impose charges if the stipulated minimum balance is not maintained. Upon opening a savings account with any bank, customers are often introduced to the concept of Average Monthly Balance (AMB). Banks typically require…
Read article Advantages and Importance of Savings Bank Deposits to Customers
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…
Read article Step-by-Step Guide to Closing a Bank Account in India
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.…
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Transfer of Bank Accounts from One Branch to Another
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…
Opening and Operational Instructions for Current Accounts
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…
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