What is a recurring deposit (RD)?
The major characteristics of the RD account can be described as “a variant of term deposit offered by the banks with fixed monthly investment, fixed duration, and a fixed rate of interest throughout the tenure of the deposit”. Under the scheme, the account holder has to deposit a pre-decided fixed amount every month to his…
Read article Services Offered in Savings Bank Accounts
Savings bank accounts offer a secure and reliable method for safeguarding funds, thereby providing account holders with peace of mind. Deposited amounts are protected against theft and loss, ensuring a high degree of financial security. Services Offered in Savings Bank Accounts: 1. Convenient Access to Funds:Savings account holders benefit from convenient access to their funds,…
Read article Restrictions on Transactions in Savings Bank (SB) Accounts
Savings Bank (SB) accounts are subject to various restrictions concerning cash deposits, withdrawals, and general account usage. These restrictions, guided by the Reserve Bank of India (RBI) and individual bank policies, aim to prevent misuse of funds and ensure financial transparency. 1. Cash Deposit and Withdrawal Limits Daily Cash Deposit LimitTypically, a daily cash deposit…
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Meaning of different operation mandates in Joint accounts
Joint accounts are accounts that are in the name of two or more persons. The operation instructions in joint accounts in banks like ‘either or survivor’, former/latter or survivor’, ‘anyone or survivor’, ‘both or survivor’, or ‘all or survivor’ are actually a mandate given by the joint holders of the account. Every above operation instructions…
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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…
Where the revenue stamp is required to be affixed?
A revenue Stamp can be explained as a receipt given by the Government in the form of small adhesive stamp in lieu of separate document stating that the tax/fee has been paid to the Government. The receipt for above certain amount shall be mandatorily acknowledged by the receiver affixing and cancelling the revenue stamp. Under…
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