Banking Awareness 2017 Inwards Uncomplicated Linguistic Communication – Lesson 9

Dear Gr8 Ambitionists, inwards our yesterday’s Banking Awareness 2017 Lesson 8, nosotros stimulate got learnt nigh the Types of Banks. In today’s lesson, nosotros shall larn nigh the Types of Bank Accounts. I know you lot volition hold upwards bored if I croak on on sharing details of 10+ types of banking concern accounts. So, hither I volition endeavour to croak far curt together with uncomplicated inwards banking examine signal of view. But delight re-read the points which are highlighted inwards bold. Those are real of import together with asked inwards previous IBPS together with other banking concern exams. Happy Reading 🙂

Banking Awareness 2017 : Types of Bank Accounts

Current Account :

  • Mainly used for Business past times persons, firms, companies, world enterprises etc.
  • No involvement is paid past times the bank. 

  • No trammel of transaction inwards a day.
  • Banks accept certainly service charges. 
  • Cheque mass faciity available. 
  • Current trouble organisation human relationship becomes inoperative where no transaction is done for terminal 2 years

Savings Account :

  • This trouble organisation human relationship tin hold upwards opened individual, unmarried or jointly. 
  • Bank pays involvement for savings inwards this account.
  • Interest is paid on daily soil from Apr 2010.
  • Savings trouble organisation human relationship becomes inoperative where no transaction is done for terminal 2 years

Recurring Deposit Account (RD A/C) :

  • Opened for regular monthly savings for certainly menstruum for higher charge per unit of measurement of interest. 
  • Fixed amount is deposited for a fixed period. 
  • Minimum deposit term six months, maximum 10 years. 
  • No withdrawals are allowed earlier maturity.

Fixed Deposit Account (FD A/C) :

  • Certain total of coin is deposited for specific menstruum of time.
  • Deposited coin can’t hold upwards withdrawn earlier maturity menstruum but tin hold upwards closed earlier maturity alongside penalty. 
  • Rate of involvement is decided past times banks individually. 
  • Minimum term of FD is vii days together with maximum term is 10 years. 

Joint Account :

This reminds me of a one-time joke….

A guy walked into a banking concern together with said, “I desire to opened upwards a articulation account”.

The cashier was real happy. “Sir, alongside who you lot desire to opened upwards the Joint Account ?”, he asked politely. 

“You demand to state that, who is the richest client of your banking concern ?” asked the guy.

Now you lot got the basic thought of a Joint Account. A articulation trouble organisation human relationship is an trouble organisation human relationship that belongs to to a greater extent than than ane person. Both electrical flow together with savings accounts tin hold upwards opened jointly. There are next options for allowing transactions equally they desire :

  • Jointly
  • Either or Survivor
  • Former together with Survivor 
  • Any one

No-frill Accounts / BSBDA

All the existing no frill accounts opened forthwith treated equally “Basic Savings Bank Deposit Account” (BSBDA) from 22nd August 2012.

  • Minimum residuum requirement is zero.
  • Maximum four withdrawals inwards a month, including ATM withdrawals.
  • No trammel on the number of deposits. 
  • KYS is compulsory. 
    • Note  If such trouble organisation human relationship is opened on the soil of simplified KYC norms, the trouble organisation human relationship would additionally hold upwards treated equally “Small account”.
      •  [By submitting your recent photograph & putting yous sign or pollex impression]
  • Limits inwards BSBDA (Accounts alongside introduction / little accounts) :
    • Aggregate of all credits in a fiscal yr does not hand Rs. 1 lac
    • The aggregate of all withdrawals and transfers inwards a calendar month does not hand Rs. 10, 000.
    • Balance at whatever signal of fourth dimension does non hand Rs. 50,000.
    • Small accounts are valid for a menstruum of 12 months initially which may hold upwards extended past times unopen to other 12 months if the individual provides proof of having applied for an officially valid document. 

PPF Account (Public Provident Fund)

Introduced past times National Saving Institute of Ministry of Finance – 1968

  • Objective : To mobilize little savings together with too render income taxation benefit. 
  • Minimum yearly deposit is Rs. 500 together with maximum 1.5 lac (w.e.f August 2014).
  • Amount tin hold upwards deposit inwards lum total or inwards installment per year. 
  • Interest for PPF a/c is decided past times Government of India.
  • Interest calculated on lowest residuum betwixt fifth 24-hour interval together with terminal 24-hour interval of every month. 
  • Duration of system is fifteen years but tin hold upwards extended 1 or to a greater extent than block of five years each.
  • Nomination facility is too available. 

DEMAT Account (Dematerialized Account) :

It is the trouble organisation human relationship inwards which investor gets facility to accept possession of shares inwards electronic shape non physical form.

With the assist of Demat a/c a individual tin alone shop his shares but if he wants to purchase or sell shares he needs to stimulate got trading trouble organisation human relationship also.

Difference betwixt DEMAT together with Trading accounts
In curt demat trouble organisation human relationship is storage facility of shares piece trading trouble organisation human relationship is transaction medium to purchase or sell the shares.

Dematerialisation :
It is the procedure of converting physical shares into electronic format. An investor who wants to dematerialise his shares needs to opened upwards a demat a/c alongside depository participant.

Depository Participant (DP)

It is the marketplace intermediary through which investors tin avail the depository services. DP provides fiscal services together with include arrangement similar banks, brokers, custodians together with fiscal institutions.

HUF Account (Hindu Undivided Family)

KARTA or a HUF is the senior most manlike individual fellow member of the identify unit of measurement together with inwards fiscal price he tin too hold upwards called director of family. Signature of Karta volition hold upwards required for every transaction from the bank.

Benefits :

  • Tax rebate available nether sections lxxx C, 88 together with lxxx L for HUF Accounts. 
  • Gift collected upwards to 50,000 Rs. volition hold upwards taxation free. 

Features :

  • HUF volition stimulate got unique PAN Card along alongside PAN Card of Karta. 
  • KARTA has sole say-so over HUF trouble organisation human relationship together with each transaction on behalf of HUF, made past times each identify unit of measurement fellow member volition hold upwards principle past times Karta. 

Bank Account for Minor

Minors are the people of little historic menstruum grouping (0 to eighteen years).
A youngster tin stimulate got an trouble organisation human relationship nether guardianship equally good equally self operate. According to RBI, bankss are advised to opened upwards deposit accounts alongside Natural Guardian (Mother / Father) or Legal Guardian for its operation.

Features :

  • Minor inwards a higher identify historic menstruum 10 years may hold upwards allowed to opened upwards together with function savings banking concern accounts independently. It is called Sole Minor Account. 
  • Banks tin offering youngster ATM, banking concern check books facility etc., but can’t render them overdrawn facility. 
  • Minor tin hold upwards partner inwards a trouble solid but cannot hold upwards liable personally for deed of firm.
  • A youngster cannot appoint nominee nevertheless minor tin hold upwards appointed equally nominee
  • Important Note : A youngster can’t give halt payment instructions on a banking concern check issued past times partnership. 

Nostro & Vostro Accounts

The price nostro & vostro are used, mainly past times banks, when ane banking concern keeps coin at unopen to other bank.

  • A Nostro a/c is trouble organisation human relationship of Domestic Bank exterior the Earth (Our trouble organisation human relationship alongside you). 
    • Example : SBI opens a electrical flow a/c alongside CITI Bank inwards New York.
  • A Vostro a/c is trouble organisation human relationship for foreign banking concern inwards Domestic Territory (Your trouble organisation human relationship alongside us). 
    • Example  CITI Bank opens electrical flow trouble organisation human relationship alongside SBI inwards Delhi. 
  • Important Points to Note
    • A NOSTRO a/c volition hold upwards inwards a unusual currency. 
    • A VOSTRO a/c volition hold upwards inwards a local currency of the banking concern where the coin is beingness held. 

Correspondent Account

It is an trouble organisation human relationship (often called a nostro & vostro a/c) established past times a banking establishment to have deposits from, brand payments on behalf of or grip other fiscal transactions for unopen to other fiscal institution. These accounts are established through bilateral agreements betwixt 2 banks.

Commonly these are the accounts of unusual banks that require the mightiness to pay & have the domestic currency. Such accounts are necessary for International Trade.

Nomination :

The banking concern asks their trouble organisation human relationship holders to brand nomination which hateful that, they should nominate persons to whom the coin lying inwards their accounts should croak inwards the resultant of their death.

Note : Minor can’t nominate whatever individual inwards the Bank.

That’s all for forthwith friends. In our side past times side Banking Awareness lesson, nosotros shall larn nigh Know Your Customer (KYC) together with Basic Banking Services. Keep visiting. Good Day 🙂

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