Types Of Bank Accounts In India Pdf
Interest Checking Accounts also called dividend checking accounts are basically a combination of checking and savings accounts. You invest a certain amount of money for dedicated terms. So there are no frill accounts for them. There is a wide variety of bank accounts for you to choose from. The Central bank of any country supervises controls and regulates the activities of all the commercial banks of that country.
Co-operative banks are also mutual savings banks meant essentially for providing cheap credit to their members. There are times when people wish to keep their identity a secret and so put their money in numbered accounts.
Foreign banks in India are required to adhere to all banking regulations, including priority-sector lending norms as applicable to domestic banks. Within this article, you will find definitions of the most common bank accounts.
Scheduled & Non-Scheduled Banks
These banks are located at district headquarters or prominent towns. But still these accounts are not popular among the public and the traditional four accounts are considered above all. Who uses Saving Bank Accounts? These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of transactions in a day. There are quite a few flavors of checking accounts out there that offer bonuses in specific areas.
These are accounts where you are able to pay for things without actually giving away your bank details. Public sectors banks are those in which the government has a major stake and they usually need to emphasize on social objectives than on profitability. Who uses current accounts? Linked accounts mean you can make purchases and have the money drawn from your bank account without having to load the money in advance. You can also submit your article by sending to article caclubindia.
The fee is also refundable. They hold a fair amount of risk because you are lending money to the public with the hopes they pay it back with the agreed interest. And you might not need to pay taxes on any growth on those investments, depending on the account and the situation. They are accounts that may have money withdrawn from them directly without limits or restrictions.
4 Types of Bank Accounts in India
Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or endorsed in their favour by third parties. There are very few of these types of banks in developed countries, valerio massimo manfredi libri pdf though there are a few that are known as secret banks. They accept deposits and make mortgage and other types of loans to its members. Private Indian banks can be further classified as old and new private sector banks.
Money Market Accounts usually have a higher account balance requirement as the minimum balance. With this account, you are encouraged to save your money for a period of time.
The present trends indicate that private sector and foreign banks offer higher rate of interest. These accounts gain interest on the amount available in your account. It provides more acceptability and liquidity of securities. Another type is credit unions, which are cooperative organizations that issue share certificates and make member consumer and other loans. Such accounts can be opened only by the non-resident himself and not through the holder of the power of attorney.
They are more or less same as Current Accounts. Being linked allows a third-party company to act as an intermediate party. It ensures faster payment on sale of shares. No stamp duty is paid on transfer of shares.
They exist in a number of countries and are considered the safest type of saving option because they are backed by the treasury of the government that issued them. The transaction facility to this account is so flexible that you can make innumerable transactions in a day. It also acts as a government banker. This ensures safety of public deposits entrusted with such institutions and they are also regulated by guidelines issued by Central Banks from time to time. Remember Me Forgot Password?
Joint accounts are often set up by couples that are living together or people who have finances that are closely linked. This means the money is always readily available for the account holder to use. Co-operative banks get their resources from issuance of their shares, accepting public deposits and also taking loans from the state cooperative banks. However, such resident Indian close relative, now being made eligible to become joint account holder shall not be eligible to operate the account during the life time of the resident account holder. State Bank of India does not charge any account opening charge while other maintenance and transaction charges apply.
Private sector banks are owned, managed and controlled by private promoters and they are free to operate as per market forces. It ensures faster communication to investors. Who use Recurring Deposit Accounts? Before you open a checking account, you want to make sure you take advantage of a good checking account promotion to get the best deal.
They usually offer interest-free overdrafts up to a certain limit to help students cope with the debts that often accumulate while studying. Most players levy this when re-opening a demat account.
This is also known as folio maintenance charges, and is generally levied in advance. But the interest rate on these accounts varies from bank to bank. The private-sector banks are banks where majority of their ownership is held by private shareholders and not by the government. Under Shariah law, interest is prohibited so Shariah compliant accounts provide a return on your money that is not interest. As stated in the introduction, a bank account may be a number of different things, and most checking accounts are also transactional deposit accounts.
It is the apex bank and the statutory institution in the money market of the country. It is charged on annual or monthly basis.
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