How to open an Indian bank account? www.deekpay.com

IndiaWith the world's largest population base and a large economic market, some multinational companies do business in the Indian market. This article explains the details of opening a bank account in India, including the required documents, account opening process and related fees.

Can a foreigner open a bank account in India?

Foreigners can also open accounts in Indian banks. Depending on the Residential Status, there are different types of accounts available in Indian banks. Although the Indian banking system is complex and there are many different types of accounts, there is only one type of account for foreigners. The requirements for opening an account vary slightly from one Indian bank to another, but generally speaking, a person who lives in India for more than half of the year is considered a resident and can open a local resident account such as a Basic Savings Account. On the other hand, foreign tourists can open NRO accounts for up to 6 months during their stay in India.

Information required to open a bank account in India

Documents required to open a 'Local Account' in an Indian bank include:

Proof of identity: passport,PAN cardStudent ID card, etc. Proof of address: food bill, utility bill, tax bill, lease, etc. Residence Visa Two photographs of documents Proof of employment/study (if applicable): employment contract/enrolment letter PAN Card (if applicable): Permanent Account Number (PAN) is an identification number issued by the Indian Revenue Department to local tax residents.

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Indian Bank Account Opening Process

To open an account with an Indian bank, most foreigners visit a branch, as opening an account online generally takesAADHAARand PAN number, which requires a separate application. However, the steps for opening an account at a branch are very simple, as long as the required documents are prepared and the bank account opening form is filled in, which can be downloaded from the internet or collected at the branch. Applicants do not need to make an appointment in advance, they just need to bring the original copies of the above documents and present them to the branch staff during business hours. The staff will check the form and documents instantly and then may ask the customer to deposit a small amount of money for opening the account first. Upon completion, the debit card and other documents will be sent to the customer's designated mailing address within a few days.

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Common Banks in India

1. State Bank of India (SBI Bank)

SBI Bank is the largest bank in all of India and is a statutory body designated by the Government of India for banking and financial services. SBIOver 24,000 branches and 60,0000 ATMs in India.

SBI Bank offers the following common account types:

Basic Savings Account: There is no minimum or maximum account balance and deposits earn interest at 2.7% per annum (tax deductible). No cheque book, only a local debit card (Rupay ATM-cum-debit card) with 4 free ATM transactions (withdrawals/transfers) per month. Non-Resident NRO (Current/Savings) Account: Rupee account (INR) with a local debit card, cheque book and internet banking services. Deposits are mainly made by local transfers or overseas remittances. There is no opening fund requirement but there is a minimum balance limit and the amount is based on MAB criteria.

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Industrial Credit and Investment Bank of India (ICICI Bank)

ICICI Bank is an Indian private multinational banking and financial services company and is the largest private sector bank in the region with over 5,000 branches and 15,000 ATMs.

ICICI Bank offers the following common types of accounts:

Basic Savings Account: No account opening funds are required, no minimum account balance requirement, and deposits earn interest (3 - 3.5% p.a.). Equipped with only one local debit card, plus free passbook and mobile/internet banking services on request. Daily withdrawal and spending limit of Rs.10,000 with no ATM charges. Non-Resident NRO Savings Account: Rupee Account (INR) with a minimum opening amount of Rs.15,250 and a minimum monthly balance of Rs.10,000 with interest earned on deposits (3.5 - 4% p.a., tax deductible). The account comes with a local debit card (cannot be used for online purchases) and mobile/internet banking services. Daily withdrawal limit of Rs.25,000 and spending limit of Rs.30,000 at shops. 5 free ATM transactions (withdrawals/transfers) per month.

HDFC Bank

HDFC is a private sector bank owned by the Housing Development Finance Corporation of India and is the fourth largest bank in India. HDFC Bank is also engaged in licensed commercial banking in Hong Kong.

The following account types are offered:

Basic Savings Account: No opening fund or minimum account balance required, deposits earn interest (3 - 3.5% p.a.). Comes with free passbook, local debit card, mobile/internet banking services. Free cash deposits at branches and ATMs. 4 free ATM transactions (withdrawals/transfers) per month. Free issue of 25 cheques per year.

Indian Bank Charges and Considerations

Below are the special charges that may be involved in banking services in India, and you should carefully check your bank's fee policy before opening an account. You can avoid many unnecessary charges by choosing the type of account that best suits your needs.

Account maintenance fees

None of the "Basic Savings Accounts" described above has any opening fund requirement or minimum balance limit. However, if you wish to open other levels of savings accounts to enjoy more banking services such as safe deposit box, insurance, personal cheque book, more advanced debit cards, etc., you have to pay attention to the minimum balance requirement of the account, or else you will incur account maintenance fees.

ATM Card / Rupay Card

A Rupay card is a debit card that can be used at ATMs and brick and mortar merchants in India, whereas an ATM card is just a bank card for withdrawing money from the Bank's ATMs. The number of free withdrawals varies depending on the tier of the account, whether it is a Rupay card or an ATM card. Generally, a 'Basic Savings Account' provides only a limited number of free ATM transactions (not limited to withdrawal operations), after which additional charges will be incurred.

International remittance fees

Generally, these Indian banks have their own remittance services under their umbrella, such as Fxout/SBI Express by SBI Bank, Money2World by ICICI Bank, RemitNow by HCFC Bank, and each of these platforms varies in terms of the countries to which you can send money, the upper and lower limits, and the cost of the service. If you need to send money overseas from India, you do not necessarily need to have an account with the bank to use its remittance platform, but you can compare the details of services offered by different banks and other e-money transfer tools before sending money.

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