In this article, we give information about how to open a bank account in India. Opening a bank account in India can be done in one of two ways: online or offline. One can either seek a new bank account in a nearby branch or begin the process online by going to the bank’s website. Selecting a bank based on your preferences, submitting appropriate paperwork, and financing your account are all steps in opening an account. You can start using your account after the formalities are completed, saving time and money.
Furthermore, the individual must guarantee that he has all of the necessary supporting documents to open a bank account. Although some paperwork may differ from one bank to the next, there are some standard criteria for opening a bank account.
-PAN card, Voter ID, Passport, Driving License, or Aadhaar Card as the documents of proof of age and identity.
-Banks and financial institutions require recent passport-sized pictures.
-A driver’s license, a utility bill in the applicant’s name, a voter ID card, a passport, and other documents as residential proof.
In this article, we will be providing their insights on various things that you need to know and understand before deciding how to open a bank account in India. This article shall help you make an informed decision about choosing a bank and opening an account and how you can use it to its full extent without any hassles.
Table of Contents
What is a bank account?
A bank account helps keep a record of how much money you have at a given time. When you go to deposit or withdraw money, your account details are updated accordingly. Upon opening a bank account, you also get a debit card and mobile banking facilities. This removes the need to go to your bank branch every time you need to make a transaction. Want to withdraw money? Simply visit any ATM and use your debit card for the same. Debit cards, credit cards, and banks’ own UPI also help you make cashless payments whenever you purchase anything.
Different Types of Banks In India
Financial institutions, like banks, deal with deposits and loans in a country. There are several different types of banks in India, each with its own roles and responsibilities. Below-mentioned is the different types of banks that are present in India:
Central Bank
The Reserve Bank of India is our country’s central bank. Each country has its own central bank, which is responsible for overseeing all of the other financial institutions in the country. The principal roles of a central bank are to serve as the government’s bank and to supervise and regulate the country’s banking system. The functions of the central bank of a country are as follows:
- Guide other banks in their regulation.
- Issuing currency in the country.
- Implementing monetary policies
- Supervising the financial system of the country
Cooperative Banks
Cooperative banks are governed by the laws enacted within the state by the state government. They are responsible for providing short-term loans for agriculture, business, and other purposes. The principal objective of a cooperative bank is to enhance social welfare by providing low-interest margin loans. Cooperative banks are arranged in a three-tiered system:
- Tier 1 (State Level): State Cooperative Banks
- These banks are funded by the RBI, the government, and NABARD.
- Concessional CRR @ 3% and SLR @ 25% apply to such banks.
- Owned by the state government.
- Tier 2 (District Level): Central/District Cooperative Banks
- Tier 3 (Village Level) – Primary Agriculture Cooperative Banks
Commercial Banks
Commercial banks are those banks governed by the Banking Regulation Act of 1949. Their basic business motive is to earn profits. They receive deposits from individuals, businesses, and governments and use them to generate loans for those in need. They can either be owned by the government, the state, or any private company.
Links for opening India’s Top 16 bank accounts online/offline
- ICICI Bank Digital Savings Account online
- Axis ASAP Digital Account Online
- Kotak Mahindra Zero Balance Account online
- Online HDFC Bank Account
- PNB account online
- Online SBI saving account
- UCO Bank Account online
- Online Bank of Maharashtra Savings Account
- Indian Bank Savings Account
- Bank of Baroda Savings Account
- Bandhan Bank Savings Account
- Online Federal Bank Savings Account
- IOB Savings Account Online
- IDBI Bank Small Account Online
- Online CBI Savings Account opening
- Union Bank of India Savings Account online
Eligibility Criteria to Open a Bank Account in India
Customers must meet certain requirements to open a savings account in India.
- Indian nationality status.
- To be eligible, the person must be at least 18 years old.
- If an account is to be opened for a child, their parents or legal guardians can open the account on their behalf.
- A legitimate identity and address proof that the government has approved are required of the applicant.
- Following bank approval, the applicant must make an initial deposit, which will be determined by the minimum balance requirement of the savings account they have chosen.
Documents required to open a bank account in India
- Two recent passport-size pictures
- Documents proving your address and identity. If the document is included under both address and identification evidence, just one copy is required.
- If the addresses are different, you must supply address proof documentation for both your mailing address and your permanent address.
General Knowledge, to Open a Bank Account in India Online?
Step 1: Choose a bank with which you want to open your account.
You can pick a bank based on the services it provides that other banks may not. Few private sector banks provide interest rates higher than the current 4%.
Step 2: Visit the bank branch or the bank’s website.
Once you’ve chosen a bank, you can open an account by going to the bank during business hours with your identification credentials and a small deposit. You can, however, open an account online by going to the bank’s website, which you can do at any time and from any location.
Step 3: Choose a suitable banking product.
A bank account offers a variety of accounts and services from which to pick depending on your needs. For example, if you operate a business, you may choose to open a current account rather than a savings account to meet your fundamental banking needs.
Step 4: Provide relevant information and documents.
You must complete the form, attach a photograph, and supply your Know Your Customer (KYC) information. Photo identification evidence in the form of your PAN card, passport, or Aadhar card, as well as “address proof’ in the form of your passport, Ration card, Voter ID card, or Aadhar card, is required. Furthermore, you can utilize your passport or Aadhar card to satisfy both photo and address-proof purposes.
Step 5: Agree to the terms and conditions of the bank.
Before signing, make sure you read all of the terms and conditions thoroughly, and if you have any questions, you can contact the person in charge.
Instructions for Opening a Bank Account by Visiting the Nearest Bank Branch?
Customers must follow the steps outlined below to open a savings bank account at any bank by visiting the nearest branch.
- Pay a visit to the branch that is most convenient for you.
- Request an account opening form from the bank executive.
- Applicants must complete both parts of the account opening form.
- Form 1: Name, address, signature, and other information, as well as assets.
- Form 2: If the customer does not have a PAN card, they must fill out this section.
- Make sure that all of the fields have been filled out correctly. The information provided in the application form should match the information provided in the KYC documents.
- The consumer will now be required to make an initial deposit under the bank’s policies.
- The account holder will receive a complimentary passbook and chequebook once the bank has completed the verification process.
- Customers can also submit the internet banking form at the same time.
Having a bank account is a crucial part of living in this age and day. You can link your bank account with a digital wallet and pay bills or recharge your phones from your phone. There are many myths and misconceptions surrounding banks and bank accounts. People often refrain from opening a bank account thinking that their money can be looted by hackers. But, banks do have strict policies regarding safeguarding client money and data. Hence, you can open a bank account with an easy mind.
Lifeinawind will publish more information about top banks in India and also share knowledge about banks and their services. We always share correct knowledge with the Internet world through our articles.
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