Bank branches have now turned into financial supermarkets where all monetary products are available. To ensure a smooth banking experience, knowledge of some key facts is essential. They include the following:
1. KYC: The two most important KYC (Know your customer) documents are PAN card and Aadhaar card. Ensure that these two are linked to the back account. Otherwise, your account may be frozen.
2. Zero balance account: A basic savings account in which only zero balance needs to be maintained can be opened in any branch of all banks. There will be no fine if the balance falls below a limit, as in the savings bank account. However, there are several limitations in carrying out transactions. People who engage in minimum dealings every month can choose the zero balance account.
3. Advantages of SB account: Each bank stipulates a minimum balance for the savings bank account. Any number of transactions is possible with an SB account and all banking facilities will be available.
4. Temporary address: You can open a bank account anywhere in India at a bank branch near your present residence. It does not matter if your permanent address is at another place. All you need to do is present an affidavit which includes your present address.
5. Nomination is compulsory: When opening a new account, you have to suggest a nominee. This would help avoid uncertainties that may emerge afterwards. Moreover, nomination has been made compulsory now.
6. Six-month deadline: Carry out at least one transaction every six months. Otherwise, your account may be frozen.
7. Reviving an account: If your account is frozen for some reason, approach the bank branch directly to revive it. Submitting KYC documents is necessary.
8. Form 15 G/H: While opening fixed deposits, submit form 15G/H if your annual income falls below the tax limit. This helps avoid deducting the tax at source. When the fixed deposits are renewed every year, submit the form again.
9. Replace old cheques: If you still retain old cheque leaves, check whether they meet CTS-2010 specifications. On the left side of the cheque leaf in small letters the words ‘CTS-2010’ could be seen. If the words are absent, the transaction with the cheque leaf may be blocked. So, apply for a new cheque book.
10. Reduce cash transactions: The banks are aiming to reduce cash transactions. Ask for money transfers through your payment account. For funds transfer between two banks, facilities like RTGS and NEFT are available. They can be resorted to if the beneficiary’s name, account number, bank branch and IFSC code are known.
