Opening Of Bank Account
What is a Bank Account
A bank account is a financial account that is maintained by a financial institution, in simple words, a bank for the customer. The customer can deposit and withdraw money from his/her account. However, these functions depend on the nature of the account. Banks offer different types of accounts for varied banking operations. Your bank account can be a savings account, overdraft account, current account, credit card account, loan account or a time deposit account.
- Savings accounts are basic bank accounts that are made for people to deposit their earnings and savings. These accounts provide relatively higher interest rates on the deposited amount. Most savings bank accounts have a minimum balance limit.
- Current accounts are generally opened by businesses and companies that have a frequent cash flow. These accounts allow them to make transactions throughout the day. Most current accounts also have an overdraft facility.
- Credit card accounts are the ones specifically opened for the individuals who are issued a credit card by the bank. These accounts act as a database for the cardholder. Credit card bills, enhanced credit limits and many other operations are performed through these accounts.
- Loan accounts are opened for the individuals who have obtained a loan from the bank. It can be a home loan, vehicle loan, personal loan, etc.
- Time deposit accounts are investment accents that are made for investment purposes only. These are usually RD (Recurring Deposit), FD (Fixed Deposit) accounts that offer decent interest rates and are great for saving money for long-term. Some time deposit accounts also have an overdraft facility.
How to open a bank account -
You can open a bank account by visiting any branch of your preferred bank or by doing it online.
Proofs required to open a bank account for an Individual -
Mentioned below are some of the acceptable Identity Proof documents verifying Legal Name:
- PAN card
- Voter’s Identity Card
- Driving License
- Job Card issued by NREGA duly signed by an officer of the State Government
- Letter issued by the Unique Identification Authority of India ( UIDAI) containing details of name, address and Aadhaar number
- Identity card (subject to the bank’s satisfaction)
- Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of bank
Mentioned below are some of the acceptable Identity Proof documents verifying Address:
- Telephone bill
- Bank account statement
- Letter from any recognized public authority
- Electricity bill
- Ration card
- Letter from employer (subject to the satisfaction of the bank)
- A rent agreement indicating the address of the customer duly registered with State Government or similar registration authority.
Proofs required to open a bank account for a resident/NRI/PIO/OCI
If you’re applying for a bank account as an NRI, PIO, or OCI, you can present one of the following documents as proof of your address:
- A recent utility bill (not more than 2 months old)
- Bank statements for the last 3 months, containing at least 2 transactions you initiated yourself
- Correspondence with a government department or authority or your valid, unexpired driving licence (if it bears your address)
Proofs required to open a bank account for a Proprietorship
For opening a bank account for a Proprietorship Firm in the name of the business; address and activity of the business must be provided. In addition, two of the following documents in the name of the Proprietary concern must be submitted.
- Registration certificate (in the case of a registered concern)
- Certificate/license issued by the Municipal authorities under Shop & Establishment Act,
- Sales and income tax returns
- CST/VAT certificate
- Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities
- License issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities,
- Registration/licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority/ Department, etc.
- Banks may also accept IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT as an identity document for opening of the bank account etc
- The complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated/ acknowledged by the Income Tax Authorities.
- Utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern.
Proofs required to open a bank account for a Partnership
For opening a bank account for a Partnership Firm in the name of the Partnership Firm; legal name, address, names of all partners and their addresses, telephone numbers of the firm and partners must be provided. In addition, the following documents must be submitted.
- Registration certificate, if registered
- Partnership deed
- Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf
- Any officially valid document identifying the partners and the persons holding the Power of Attorney and their addresses
- Telephone bill in the name of firm/partners
- Opening a Bank Account for a Company
Proofs required to open a bank account for a Company
For opening a bank account for a Company in the name of the company, principal place of business, mailing address of the company and telephone number must be provided. In addition, the following documents must be submitted.
- Certificate of incorporation and Memorandum & Articles of Association
- Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account
- Power of Attorney granted to its managers, officers or employees to transact business on its behalf
- Copy of PAN allotment letter
- Copy of the telephone bill
- Opening a Bank Account for a Trust / Society / Foundation
Proofs required to open a bank account for a trust / society / foundation
For opening a bank account for a Company in the name of the trustees, settlors, beneficiaries and signatories, names and addresses of the founder, the managers/directors and the beneficiaries and telephone/fax numbers must be provided. In addition, the following documents must be submitted.
- Certificate of registration, if registered
- Power of Attorney granted to transact business on its behalf
- Any officially valid document to identify the trustees, settlors, beneficiaries and those holding Power of Attorney, founders/managers/ directors and their addresses
- Resolution of the managing body of the foundation/ association
- Telephone bill