How to Open a Bank Account – If you’re looking to start your own business or take the next step in your career, opening a bank account is an essential part of the process. In this blog post, we’ll explain everything you need to know about opening a bank account and how to go about doing it. We’ll explore the different types of bank accounts available and help you choose the one that’s right for you. We’ll also provide tips on how to make the process as smooth and easy as possible. So whether you’re just starting out or you’ve been wanting to open a bank account for years, this is the guide for you!
It is not as straightforward as simply approaching a bank teller and handing over your cash to open an account. Preparation and thought are required when creating a new account. You’ll need to decide, for instance, what kind of account you want and how you want to use it. Fortunately, once you understand a few fundamentals of banking, this procedure is not difficult, despite the fact that banking jargon can be intimidating. To set up your first account, just follow along.
How to Open a Bank Account?
Despite the government’s national mission for financial inclusion, the Pradhan Mantri Jan-Dhan Yojana scheme, which increase the percentage of people in India with a bank account to 80%, India has the second largest unbank population in the world, and women account for nearly 60% of unbanke adults in the country.
The World Bank publishes its Global Findex Database on financial inclusion every three years; the most recent edition was publish in 2018. Despite having a relatively high account ownership rate, this 2017 Global Findex Database state that India claims a significant portion of the global unbanke population due to its sheer size. With 48%, India has the highest proportion of inactive bank accounts in the world. Every Indian must first have a bank account before they can actively participate in the banking system. Let’s examine the procedure for opening a bank account in India.
How to Open a Bank Account Details
| Scheme | How to Open a Bank Account |
| Category | How To Guide |
| Year | 2023 |
| Official Website | Click here |
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What is KYC (Know Your Customer) in Banking?
- Know Your Customer norms apply to everyone who wishes to open a bank account.
- KYC is certain basic information that the banks need to have about the applicant. This information is backed up by necessary documents submitted by the applicant to authenticate his/her identity.
- This is basically to weed out potential frauds and monitor suspicious high value transactions that may be related to illegal trades, money laundering or other financial scams.
Requirements to Open a Bank Account
With the help of India Stack, the largest open API-base technology in the world, the government of India is working to digitize the entire banking infrastructure. To access any financial service or purchase a financial product, one must have a bank account. In order to fulfill the Know Your Customer (KYC) requirements, an applicant in India must possess a list of documents in order to open a bank account. These documents are require by all state-own and private banks in India.
Aadhaar Card
If you do not already have an Aadhaar card, the first step is to apply for one.
Aadhaar, a verifiable 12-digit identification number issued by the Unique Identification Authority of India base on a customer’s biometric and demographic data, has been assisting the federal government in making it possible for citizens to open bank accounts. India Stack’s backbone is Aadhaar. The Aadhaar card is now the only valid proof of identity, residence, and the bank account holder’s phone number to open a bank account.
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Permanent Account Number (PAN)
The Income Tax Department of India issues the Permanent Account Number, or PAN, which is a unique alphanumeric number with ten digits. The PAN enables the tax department to identify and link all transactions involving the PAN holder, including tax payments, income tax returns, and specific transactions. At the time of applying for a new bank account, you must present your PAN card. To obtain a PAN card, follow these steps:
Steps to Open a Bank Account
To open your account, follow these four steps once you have all of your documents ready:
Visit Bank Branch or Apply Online
You must either visit the bank’s branch or its website to obtain the account opening form to open any type of account. In order to agree to the fundamental terms and conditions of the bank, you are require to sign this form and provide personal information such as your name, permanent address, date of birth, and the names of your parents or spouse.
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Submit Documents of Proof for KYC
The Reserve Bank of India, India’s central bank, has mandate that only certain documents serving as proof of identity will be accept by Indian banks for account opening. Customers are require to submit mandatory documents, such as an Aadhaar Card or PAN Card, as well as two recent photographs of themselves, in order to open a new account. Other supporting documents will differ from bank to bank.
Wait for Bank to Assess Documents
New account approval typically takes one to two days from the bank. Wait for the bank to contact you after you have submit your documents for verification or clarification of any errors they discover in your KYC document submissions.
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Collect Your Account Details, Debit Card and Internet Banking Details
Your bank account number and a customer ID, which you can use to access online banking, will be given to you once the bank examines the evidence provide and approves your account-opening documents. Instead of going to a physical bank branch to make a transaction, you can use online banking to do it electronically over the internet.
Additionally, a debit card is provide to enable you to begin making financial transactions and gaining access to your bank account. A debit card is a plastic card that your bank gives you so that you can pay for things with it inset of cash. You are require to change your ATM pin by selecting a new pin for your debit card at an ATM operated by a bank.
Additionally, a cheque book is provide to assist you in signing checks and transferring funds between accounts. A cheque is a piece of paper that tells a bank to transfer money from one account to another in the person’s name. Only through the combine efforts of the government, the business community, and other stakeholders in the industry has the nation been able to move from not having access to banking services to taking bold steps to expand banking options. Only if its citizens make the decision to empower themselves will India be able to lead the race toward nationwide financial inclusion. The first step toward achieving that objective is likely to be having a bank account.
Conclusion
If you’re considering opening a bank account, there are a few things to keep in mind. In this blog post, we’ll discuss the main points of consideration when opening a bank account, and provide some tips on how to make the process as smooth as possible. We will also explore some of the different types of bank accounts available and help you decide which one is best for you. So whether you’re looking to open a basic savings account or invest in property or stocks, this blog has everything you need to know.
FAQ’S
How much money is required to open a bank account?
HDFC Bank Savings Account: HDFC zero balance account opening online can be done at 3%-3.5% interest rate. The HDFC minimum balance for savings account can be Rs 2500, Rs 5000, Rs 10,000 or Rs 25,000
Can we open bank account online?
Open your SB account at your convenience without the need to visit the Bank Branch. This is an end-to-end online account opening process through Video KYC. This is a full fledge KYC account for all your Banking needs. 100 % paperless Process.
Is Aadhaar card enough for opening bank account?
UIDAI has also updated their website and has clearly mentioned that Aadhaar is a preferred KYC document. But you don't have to submit it mandatorily and can submit any other document as prescribed by the RBI in their list of Officially Valid Documents.
Can I get a bank account without a job?
So you'll need a steady job, a Social Security payment or another form of income. Otherwise, you could get slapped with fees or end up owing the bank money before you put anything in your account.
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