Opening of Bank Accounts 📝

Process: How to start a relationship with a bank.

Steps to Open an Account 🛠️

1. Application Form 📄

• Fill the Account Opening Form (AOF).
• Details: Name, Address, Occupation, Annual Income, Type of Account (Savings/Current).
• Nomination: Must nominate someone (who gets money if you die).

2. KYC Compliance (Mandatory) 🆔

• Submit Officially Valid Documents (OVDs).
• Proof of Identity: PAN, Aadhaar, Passport.
• Proof of Address: Aadhaar, Driving License, Utility Bill.
• Recent Photograph.

3. Introduction (Optional now) 🤝

• Earlier, an existing account holder had to "introduce" the new customer.
• Now, with Aadhaar/PAN based KYC, introduction is not mandatory for individuals.

4. Specimen Signature ✍️

• Customer signs on a Specimen Signature Card.
• Bank scans this signature.
• Used for verification: When you issue a cheque, bank matches signature with this specimen.

5. Initial Deposit 💰

• Deposit the minimum balance amount (e.g., ₹1000 or ₹5000).
• Bank gives you: Passbook, Cheque Book, Debit Card.

Types of Accounts 🏦

1. Savings Bank Account (SB)

• For: Individuals to save money.
• Interest: Low (3-4%).
• Restrictions: Limit on number of withdrawals.

2. Current Account (CA)

• For: Businessmen, Companies.
• Interest: ZERO (0%).
• Benefits: Unlimited transactions, Overdraft facility.

3. Fixed Deposit (FD)

• For: Lump sum investment for fixed period.
• Interest: High (5-7%).
• Withdrawal: Only after maturity (penalty for premature withdrawal).

4. Recurring Deposit (RD)

• For: Monthly savings (e.g., ₹1000 every month).
• Interest: Similar to FD.

Nomination Facility 👨‍👩‍👧

Section 45ZA of Banking Regulation Act.

• Nominee: Person who receives money in case of depositor's death.
• Trustee: Nominee receives money as a trustee for legal heirs (Nominee is NOT the owner, unless he is also the legal heir).
• Rule: Only one individual can be a nominee (no joint nominees).

Quiz Time! 🎯

💡 Final Wisdom: "Opening an account is the first step to financial freedom. Ensure your KYC is clean and nomination is done!" 📝✅

Next up: Minor Accounts - Can a child open a bank account? 👶