Know about Bank Account - How to open, Types, Documents and Eligibility with Web Online CA

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Bank Account - How to open, Types, Documents and Eligibility

India is the second most populous country in the world, approximately 140 crore people live in India and the banking sector in India is one of the largest and most dynamic in the world. Everyone wants to open a bank account for their basic financial needs. Earlier you needed to visit a branch to open a bank account, but in the last few years individuals can open an account online in just a few minutes sitting at their home.
In this article we will talk about how to open a bank account

What is Bank?

A bank is a licensed financial institution that acts as an intermediary in the economy, facilitating the movement of funds between savers and borrowers. Through its various services including accepting deposits, providing loans, facilitating transactions and giving financial advice, the Bank plays an important role in supporting economic activities and promoting financial stability. With the mandate to safeguard deposits and adhere to regulatory standards, banks act as pillars of trust and credibility in the financial system, contributing to the growth and development of individuals, businesses and governments.

How to open bank account?

Read the points given below to open a bank account.

Choose a Bank : Select a bank that meets your needs in terms of services, fees, branch locations, and online banking options.

Select the Type of Account : Depending on your needs, decide what type of account you want to open, such as a savings account, current account, or fixed deposit account.

Visit the Bank Branch or Apply Online : You can either visit the nearest branch of the chosen bank or apply online through the bank's website or mobile app, depending on the bank's procedures.

Fill the Application Form : Fill in the details in the account opening application form provided by the bank. You will need to provide personal information such as your name, address, date of birth, occupation and contact details.

Submit Required Documents : Submit necessary identity and address proof documents as per the Bank's requirements.

Verification Process : The Bank may conduct a verification process to confirm the authenticity of the documents provided and your identity.

Receive your Account Details : Once the account is successfully opened, you will receive account details such as your account number, account type and other relevant information.

Start using your account : Your account is now ready to use. You can start depositing money, making transactions and enjoying the banking services offered by the bank.

Types of Bank Account

There are many types of bank accounts offered by financial institutions to meet the diverse needs of individuals and businesses. Here are some common types:

Saving Account 

A savings account is a financial product offered by banks and other financial institutions that allows individuals to safely deposit money and earn interest on those funds over time. It is a type of deposit account where customers can store their savings for various purposes, such as emergency funds, future expenses or long-term financial goals. Savings accounts generally offer lower interest rates than other investment options but provide greater liquidity and security for deposited funds.

Features and benefits of Saving account 

A savings account is equipped with passbook, Debit card and checkbook facility.

A savings account typically offers modest interest rates but allows customers to withdraw funds as needed, with a limit on the number of monthly withdrawals.

Unlike fixed deposit accounts, savings accounts provide liquidity, allowing account holders to withdraw money when needed without any penalties.

You have the option of using your savings account to send and receive payments.

Many savings accounts require maintaining a minimum account balance to avoid penalties or fees.

Savings accounts provide easy access to funds through various channels such as ATM withdrawals, online banking, mobile banking and personal transactions at bank branches.

Opening a savings account is usually a straightforward process, requiring basic identity documents such as Aadhaar card, PAN card, passport or voter ID card along with address proof.

Savings accounts are usually insured by government deposit insurance schemes, providing a level of protection to depositors in the event the bank fails or experiences financial difficulties.

 Current Account

A current account is a bank account that generally does not earn interest, primarily serving the needs of businesses. Current accounts offer greater flexibility in terms of transaction limits for cash deposits and withdrawals within or outside the city. Individuals, Sole Proprietorship, Partnership Firms, Private and Public Limited Companies, HUF/Specified Unions, Societies, Trusts, etc., are eligible to open a current account.

Features and benefits of Current account 

Unlike savings accounts, current accounts generally offer unlimited transactions, including deposits, withdrawals and transfers, without any restrictions or fees per transaction.

Current account holders receive a separate checking balance which is refreshed monthly. In contrast, savings account holders typically receive a year's supply of checks and may incur a fee for requesting a new checkbook. However, current account holders enjoy monthly allotment of checks without any charges.

Current account is a non-interest earning account.

Transfer funds electronically through online platforms like internet banking, mobile banking etc.

Current accounts often offer checkbook facilities, enabling account holders to make payments through cheques.

The minimum balance requirement fluctuates depending on the type of current account.

Current accounts often come with additional business banking services to suit the needs of businesses, such as cash management services, merchant services, payroll processing and business loans.

NRI Account

NRI is a person who is domiciled in India but resides outside the country with the intention of staying abroad indefinitely for employment, business, education or other reasons. These accounts provide convenient banking solutions to NRIs, including remote account opening, currency conversion and tax benefits on interest earned, promoting financial connectivity with India while living abroad.

Features and benefits of NRI account

NRI accounts provide convenient banking solutions for individuals living abroad, allowing them to effectively manage their finances from anywhere in the world.

International banking provides access to a wide variety of investment opportunities, enabling NRIs to build a diversified investment portfolio.

NRI Banking Services provides secure and convenient banking solutions.NRI accounts provide access to a wide range of banking services including online banking, mobile banking, international debit cards and special investment options, ensuring comprehensive financial management and flexibility.

Salary Account

Salary account is a special bank account offered by employers for disbursement of salaries and other employment-related payments to their employees. These accounts come with a variety of features and benefits to meet the financial needs of employees.Employees have the option to select their preferred type of salary account as per their desired features. Additionally, the bank that hosts your salary account also manages reimbursement accounts, where your allowances and reimbursements are deposited.

Features and benefits of Salary account 

Many salary accounts do not require maintaining a minimum balance, ensuring that employees can receive their full salary without worrying about maintaining a minimum balance.

Can be opened only by an employer.

Salary accounts typically come with a debit card that provides access to ATM services, allowing employees to withdraw cash, check account balances, and conduct other banking transactions with ease.

Banks provide instant access to various types of loans to their salary account holders.

Banks often provide special offers, discounts and benefits to salary account holders.

Salary account holders often have access to online banking services, enabling them to check account balances, transfer funds, pay bills, and conduct other transactions electronically through Internet banking platforms or mobile apps. Is.

Fixed Deposit Account

Fixed deposit account, commonly known as FD account, is a type of investment offered by banks and financial institutions where individuals deposit a lump sum of money for a fixed period at a predetermined interest rate. Fixed deposit accounts provide a safe and stable investment option, which is ideal for individuals who want to earn higher returns on their savings while reducing risk.

Features and benefits of Fixed deposit account

On maturity of a fixed deposit, investors have the option to reinvest the principal amount as well as the interest earned for another term.

Investors can choose the tenure of their fixed deposits ranging from a few days to several years, depending on their financial goals and liquidity needs. Long term fixed deposits usually offer higher interest rates.

Fixed deposits are considered a safe investment option as they are backed by the reputation and stability of the issuing bank or financial institution.

Fixed deposit returns are not affected by market fluctuations, making them stable investment options, especially during volatile market conditions.

Eligibility to open a bank account

Applicant's age should be more than 18 years.

Valid identification documents such as passport, driver's license, Aadhaar card, PAN card, or voter ID card are required.

Proof of address, such as a utility bill, rental agreement, or government-issued document, is required.

Applicants must comply with regulatory requirements such as Know Your Customer (KYC) norms

Documents required to open a bank account

Aadhar card

Pan Card

Driving License

Passport size Photo

FAQ's

What are the advantages of e-filing?

E-filing is a fast, convenient, secure, and sometimes free way to file taxes. E-filing is processed quickly, even if you wait until the last submission date.

If you file electronically and direct deposit your refund, the funds will be transferred to your bank account within a few days of receiving and processing your return. If you have a balance, you can pay by direct debit. And with e-filing, you don't have to worry about making mistakes, as errors are corrected immediately.

How does Online Income Tax Return Filing work in India?

Taxes imposed on the income of individuals, corporations, and other legal entities are formally called income taxes. There is no uniform tax rate for all income ranges, and it varies by industry and region, and in some cases, lower incomes are eligible to pay income tax.

There are two types of taxes: direct and indirect. A direct tax is a tax that is collected directly from the taxpayer, whereas an indirect tax is a third-party tax such as a value-added tax.

An Indian Income Tax Return (ITR) is a form for filing income and tax details with the Income Tax Authority. The tax eligibility of the taxpayer is calculated based on income. Sometimes, taxpayers are bound to get refunds from the Income Tax Department if their income tax returns show excess tax paid during the previous year.

All registered taxpayers with taxable income must file their Income Tax Returns online. However, people over 80 who do not have income from regular business or profession can also file paper returns.

 What is a GST return, and how many GST returns are filed?

GST Return is a document giving details of income that a registered GST dealer must submit to the Government of India's tax authorities. This return confirms the payment of the registered GST dealer and calculates the tax liability.

GST returns are filed monthly or quarterly, or annually by GST-registered dealers depending on the nature of the business and whether there is an option to file returns monthly or quarterly. 25 GST returns should be filed in a year.

Taxpayers who have opted for Quarterly Return and Monthly Payment Plan (QRMP) must file eight quarterly returns and one annual return. Hence, 9 GST returns are to be filed in a year.

What is the role of a Digital Signature Certificate?

A certificate serves as proof of a person's identity for a specific purpose. For example, a driving license identifies someone legally driving in a particular country. Similarly, a digital certificate may be presented electronically to identify a person, access information and services online, or digitally sign certain documents.

A licensed Certificate Authority (CA) may issue a digitally signed certificate. Certificate Authority (CA) means a person licensed under section 24 of the Information Technology Act, 2000 of India to issue Digitally Signed Certificates.

How do I register for MSME Udyam Online in India?

MSME stands for Micro, Small, and Medium Enterprises. There was no clear definition of MSME till the Atma Nirvana package was announced by the Finance Minister in May 2020. These companies were classified based on manufacturing and service industries. But after the Atmanirbhar package, this distinction between manufacturing and service industries has disappeared. The classification of these companies is currently based on investment and sales. Earlier, this process was known as Aadhar Udyog Registration.

MSMEs can register through MSME Govt Portal only. Users can register for a new MSME through this portal or re-register an already registered Udyami Aadhaar Memorandum Part II (EM-II) or Udyog Aadhaar Memorandum. The Ministry of Small and Medium Enterprises manages and operates this portal, so it is safe and reliable.

What are the benefits of having a FOSCOS/FSSAI License/Registration?

Consumers are becoming more aware of food quality, standards, and hygiene in this information age. It is more convenient for online grocery stores to be personally FSSAI certified before buying anything from outside, as it provides better assurance of food quality without contamination or foreign ingredients.

Legal Benefits: Most people still believe that getting a food license is a slow and challenging process with lots of paperwork and paperwork. There is also a need for clarification that getting a food license costs much money.

Use of FSSAI Logo: FSSAI licenses only those businesses that meet minimum hygiene standards. If you have a food sales license, you can display it on menu cards, pamphlets, packaging bags, etc. The FSSAI logo on the food will show the products in the competition.

Business expansion: All newly established companies want to expand their operations to all other places and explore new markets and consumer bases.

Customers should feel comfortable buying new products as they set up their business in recent locations. A valid food license also makes expanding your business to new places or opening new stores easier.

Quality upgrade: An FSSAI License/Registration facilitates the provision of high-quality food products and improves the overall performance of your food business.

What is a Store or Establishment License?

A shop and establishment license is a legal document issued by a state government that allows a business owner to operate legally. This license indicates that the owner has complied with the labor laws, welfare rules, and safety rules related to the store or establishment. Employers can also avail of benefits provided by the government, such as employee wages, insurance, and sick leave.

Who should apply for a Stores and Facilities License?

A store and convenience license is a mandatory registration that all businesses operating at a physical location must obtain. The specific requirements for obtaining a license may vary depending on the state in which your business is located. Generally, companies such as stores, restaurants, hotels, cafes, theaters, and other commercial establishments operating in physical locations must apply for a store and establishment license. Businesses that work from home offices or coworking spaces may also require this license. Standard documents required to obtain a store and facility license include proof of address, identity, and PAN card. Getting a license usually involves completing an application and submitting the required documents to your local municipal or state labor office.

Why is it essential to obtain a trademark registration?

Public Notice of Trademark: A registered trademark is a visible expression of ownership of a brand. Trademark registration also establishes a brand's reputation and lets consumers know that the products or services associated with the trademark meet the brand's quality and control standards. It is an acronym that helps consumers make purchasing decisions by quickly identifying and differentiating their products and services from those of their competitors.

National Validity and Ownership Estimates: Trademark registration applies nationwide and provides a presumption of trademark validity and trademark ownership. Under federal trademark law, all registered trademarks are deemed to meet all critical USPTO registration requirements and have actual requests with the trademark registration owner.

Resistance Against Trademark Infringement: Trademark registration allows us to stop competitors from infringing our trademarks and tells the police how our brands are being used. You can ask the infringer to stop using your marks or use the social media provider or online marketplace to remove the infringing content.

What is company registration?

Before filing for company registration, let us understand the concept of a company. What is a company? A company is a business entity having at least two directors and employees/shareholders. It is a legal business entity established under the Companies Registration Online Rules established under the Companies Act 2013.

So how do you register a company in India? Although the process is simple, it requires the assistance of a company registration service provider. Web Online CA provides end-to-end support, guiding you through every step required to register your company in India.

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