Karta (Manager) of HUF have sole authority over HUF account and also on every transaction on behalf of HUF account, made by each member of the family. Therefore, it is necessary to appoint a new Karta to allow operation in the account after the death of the Karta to allow further operation in the same…
The Union government has made Aadhaar number mandatory for opening the bank accounts, as well as conductiong financial transactions of Rs.50000.00 and above.The existing customers of banks who have not linked Aadhar number issued by the Unique Identification Authority of India (UIDAI) to their bank is now required to link the same before December 31,…
There are two possibilities in a bank account maintained by a customer viz. (i) a deposit account is opened in a bank with a valid nomination or with the survivorship clause like ‘either or survivor’, or ‘anyone or survivor’, or ‘former or survivor’ or ‘latter or survivor’ etc. (ii) A deposit account is opened in…
HUF is the acronym for Hindu Undivided Family. A HUF can be formed by members of a family, wherein the members are lineal ascendants or descendants of Hindus, Buddhists, Jains, and Sikhs religions. The eldest member becomes the Karta of HUF. Other members of the family are called coparceners. The coparceners share equally with the…
The foreign nationals on employment in India can maintain accounts in their individual names in the form of SB, Current Account and Term deposit. However, foreign companies are allowed to open and maintain current accounts in the banks. Nevertheless, they may be allowed to keep their surplus money in short-term deposits with a maturity not…
The foreign nationals visiting India on students Visa (including those coming to India for the study of Yoga, Vedic Culture, Indian System of Dance and Music) are allowed to open the bank account in India. For such students, Non-Resident Ordinary (NRO) account will be opened after completion of KYC (Know Your Customer) formalities like verification…
The foreigners who are on a short trip to India on tourist Visa may open their bank account in India. They are facilitated to open SB or Current account in the form of NRO (Non-Resident Ordinary) account. The accounts of tourists opened by the authorised dealer banks after completion of KYC (Know Your Customer) procedure…
The foreign nationals on employment in India are permitted to open and maintain domestic (Resident Rupee Accounts) accounts like SB, Current Account or Term Deposits with the authorized dealer banks in India. The accounts of foreign companies in India can be maintained only in current accounts. Such companies are allowed to keep their surplus money…
The operation procedure for old/sick/incapacitated bank customers is laid down in para 5.6.2 of RBI Master circular. According to the circular, the cases of sick/old/incapacitated account holders fall into the following categories: an account holder who is too ill to sign a cheque/can not be physically present in the bank to withdraw money from his…
The customers, both deposit and borrowal accounts can open the bank account using OTP based e-KYC. The Reserve Bank made the amendments to ‘Principal Directions on KYC ‘(Know Your Customer (KYC)) Directions, 2016 (Master Direction No.DBR.AML.No.81/ 14.01.001/2015-16 dated February 25, 2016) with effect from December 8, 2016. In terms of the e-KYC amendments now made…