How to open a bank account in India www.deekpay.com

India is the world's most populous country and attracts countless investment dollars, so let's explore how to open a bank account in India today.

Requirements for opening a bank account

In India, where the government is working to digitise the entire banking infrastructure with the help of IndiaStack, the world's largest open API-based technology, having a bank account has become a necessity for accessing any financial service or purchasing financial products.

To open a bank account in India, the applicant needs to have a list of documents listed by all state-owned and private banks in India, which are required to fulfil the Know Your Customer (KYC) requirements.

Below is a list of what is required:

Aadhaara checkpost

The first step is to apply for an Aadhaar card (if you don't already have one).

Aadhaar, the backbone of IndiaStack, is a verifiable 12-digit identification number issued by India's sole identification agency based on the biometric and demographic data of its customers, and plays an important role in helping the federal government to help citizens open bank accounts.

At the time of opening a bank account, the Aadhaar card has become the only valid proof of identity, proof of residence and proof of telephone number of the bank account holder.

Find the Registration Centre

In order to enroll yourself or your family members in Aadhaar, you need to visit an Aadhaar enrolment centre. Visit the Unique Identification Development Authority of India (UIDAI) of the Government of India to find the nearest centre.

Appointment with the Unique Identification Development Authority of India Aadhaar Seva Kendra

This Aadhaar Enrolment Appointment will help you register for a new Aadhaar card and also help you update your name, address, mobile number, email address, date of birth and biometric information. Any incorrect information can hamper your bank account opening process; therefore, it is important to verify and recheck all information before applying for a new bank account.

Check Aadhaar status

You need your Enrolment ID (EID) to check your Aadhaar status. The EID is displayed at the top of your Registration/Renewal Confirmation Form and consists of the 14-digit Registration Number and the 14-digit Date and Time of Registration. These 28 digits together form your EID.

If you are unable to retrieve your EID, you can retrieve a lost or forgotten EID using your registered mobile phone number.

Download your Aadhaar

You can download an electronic copy of your Aadhaar card. e-Aadhaar is a password protected electronic copy of Aadhaar, digitally signed by UIDAI.

Your enrolment centre can also send a physical copy of your Aadhaar card.

If you wish to reprint your Aadhaar, you can request a reprint using your Aadhaar number or registration ID.

After printing your Aadhaar card and filling in all the details correctly, you can open your bank account in four simple steps.

Permanent Account Number (PAN)

Permanent Account Number (PAN) is a 10-digit unique alphanumeric number issued by the Income Tax Department of India. PAN enables the tax department to identify and link all transactions such as tax payments, income returns and specified transactions of the PAN holder.

The PAN card must be presented when applying for a new bank account. The steps to purchase a PAN card include:

Application through the PAN Application Centre

The Income Tax Department has allowed UTI Infrastructure Technology and Services Limited (UTIITSL) or National Securities Depository Limited (NSDL) to manage PAN service centres.

For anyone wishing to obtain a PAN, a PAN application form (Form 49A/49AA) is required to be submitted at the PAN Application Centre of UTIITSL or NSDL along with other relevant documents and prescribed fees.

Indian citizens can apply for PAN in Form 49A and non-resident persons (including foreign companies) have to apply for PAN in Form 49AA.

Individual applicants must affix two colour photographs on the application form.

The prescribed documents for proof of identity, address and date of birth need to be sent together with the completed application form.

online application

You can apply for a PAN card online by visiting the NSDL website. There are five simple steps to be followed:

Applicants are required to register by submitting Form 49A/49AA available through the website.

A token number will be generated for the applicant before completing the form.

This temporary token number will be sent to the applicant's email ID and will help the applicant to complete the application form.

The applicant needs to check the details submitted before final submission. After all the checks are completed, the form should be submitted.

The amount of payment depends on whether the applicant wishes to receive a physical PAN card or an online version.

While Aadhaar and PAN cards are necessary to create a bank account, other documents that can be used include a driver's licence, the applicant's passport, voter's identity document, and a ration card issued by the government. The Government of India allows citizens to purchase subsidised foodgrains through the public distribution system.

Steps to open a bank account

Once you have all the documents ready, follow these four steps to open an account:

Apply in person at a bank branch or online

To open any type of bank account, you will need to visit a bank branch or visit the bank's website to obtain a bank account opening form.

The form requires you to fill in personal details such as your name, permanent address, date of birth, parents' or spouse's names and your signature to commit to the bank's basic terms and conditions.

Submit KYC supporting documents

The Reserve Bank of India, the Central Bank of India, has authorised Indian banks to authorise the opening of bank accounts only on production of certain documents as proof of identity.

At the time of opening a new account, customers are required to submit mandatory documents such as Aadhaar or PAN card and two recent photographs of themselves. Other supporting documents vary from bank to bank.

Waiting for the bank to assess the documents

Banks usually take one to two days to approve new accounts. After submitting your documents, wait for the bank to contact you to validate or clarify any errors they find in the KYC documents you have submitted.

Collect your account details, debit card and online banking details

Once the bank approves your account opening documents by analysing the proof submitted, the new account opening is approved and the bank issues you with your bank account number as well as a customer ID to enable online banking. Internet banking is a way of conducting banking transactions electronically using the internet instead of face-to-face transactions at a physical bank branch.

We also provide you with a debit card to start accessing your bank account and making financial transactions. A debit card is a plastic card issued by a bank that enables you to make payments using the card instead of paying in cash.

As a mandatory requirement, you need to change your ATM PIN by visiting your bank's ATM and selecting a new PIN for your debit card.

We also provide you with a cheque book that can help you sign cheques to transfer funds from one bank account to another. A cheque is a paper document that instructs the bank to transfer funds from one account to another account that issued the cheque.

It is only with the concerted efforts of the Government, the corporate sector and other industry stakeholders that the country will be able to move from being unbanked to taking bold steps to increase banking.

India can lead the nationwide race for financial inclusion only if its citizens decide to empower themselves. Having a bank account has proved to be the first step towards this goal.