Savings Bank (SB) accounts are opened in the bank mainly for saving purpose. Customers cannot open an SB account for business purpose. Let us find out who are eligible and who are not to open SB accounts.
The following entities are eligible to open SB accounts in a bank:-
(i) SB Accounts may be opened in the name of Individuals (Resident or Non-Non-Resident)
(ii) Associations, Societies, educational institutions and Hindu Undivided Family (HUF) and Trusts, so long as the account not used for trading purpose.
(iii) Primary co-op society which is being financed by the bank.
(iv) Khadi & Village industries Board.
(v) Agriculture Produce Marketing Committee.
(vi) Societies registered under Societies registration Act.
(vii) Companies registered under companies act which have been licensed by Central Government under corresponding provision of section 25 Companies Act 1913 and without permission to add the word “Limited” or “Pvt. Limited” to their names.
(viii) Government Departments/bodies/agencies in respect of grants/subsidies released for implementation of various programmes /schemes.
(ix) Institution other than mentioned above and whose entire income is exempt from payment of Income Tax under IT Act.1961
(x) Development of women and children in rural area (DWCRA). (xi) Self Help Group. (SHG) registered or unregistered (xii) Farmers Club- Vikas Volunteer Vahini (VVV) (xiii) Any other institution permitted by RBI from time to time
The following entities are not eligible to open a SB account in a bank:-
- Any trading or business concern.
- Government department/bodies depending upon budgetary allocation for performance of their functions.
- Panchayat Samitis/ Municipal Corporation/Committees
- State Housing Boards
- Industrial Development Authorities
- State Electricity Boards
- Water/Sewerage/Drainage Boards
- State Text Book publishing corporations/Societies
- Metropolitan Development Authorities
- State/District level co-operative Societies
- Other banks including Regional Rural Banks, Co-operative Banks and Land Development Banks
- Political Parties