Skip to main content

Furnish more data for new bank account

OPENING new accounts with banks requires the submission of various details and documents for an individual. One time when a new bank account has to be opened is when they join a new employer or change jobs as the employer will require this for the direct credit of salary each month.

The situation is difficult especially for those who are posted out of their home towns because there are many cases where they would not have all the documents needed for meeting the know your customer (KYC) requirements. Now, there is a change in the position with the guidelines being made stricter.

Change: Earlier many banks used to open salary accounts by accepting a letter or a certificate from the employer stating details of the employee concerned.

There is now a change in the situation as the Reserve Bank of India has given new guidelines to the banks with respect to the opening of the salary accounts with them.

The process of ensuring that there is just a letter or certificate from the company about the employee for the purpose of the account opening will not be possible anymore. There will have to be an additional documentation that has to be collected so that there is some additional proof that will confirm the details of the employee.

This will make the production of an additional document important if the account is to be opened and this is to ensure that there is no fraud that is taking place.

Restriction: Although banks have been given guidelines that they should not rely on just a letter or certificate issued by the employer for the purpose of opening the account, there are two things that they will have to be alert about here.

The first is that such certificates and letters should be from companies or entities of repute. The other thing that has to be taken into consideration is the fact that the bank will have to decide about the competent authority who can issue the certificate.

This means looking closely at the person giving out the certificate along with their designation in the company.

Additional document: One of the main problems that has been found seems to be that banks until now have only relied on the letter or certificate from the company for completing the KYC requirements. To tackle this, another requirement is that apart from the letter or certificate the bank will have to rely on at least one additional document for the purpose of opening of the account.

There is a long list of documents that are useful and this list needs to be considered carefully. One additional document is the minimum that the bank should ask for and there can be situations where the bank can ask for an identity as well as address proof according to their internal systems.

For many people this could result in a tough time in case they do not have the documents. The list of documents will include passport, driving license, PAN card and voters identity card among others. The good part is that most of the employees will have a PAN card because this is essential for tax deduction at source on the salary that they receive.

Utility bills: Another way in which a part of the documentation can be completed is by using the utility bills for the purpose of the KYC requirement.

The utility bills have the address of the person and hence this becomes the proof because there is some check that is also undertaken by the utility before the address is added to the bill.

This becomes a document that can be used, but whe ther this will be enough is a tough question as these bills do not have a photograph so it might have to be used with some other proof again.




Popular posts from this blog

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...

Birla Sun Life Mutual Fund Launches Birla Sun Life NIFTY ETF

Birla Sun Life has launched a new fund namely, Birla Sun Life Nifty ETF, an open ended exchange traded fund. The new fund will be open for subscription from 4th July to 18th July 2011, at an offer price of Rs 10 per unit. The investment objective of the scheme is to generate returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. No exit load will be charged under the scheme. The performance of the scheme will be benchmarked against S&P CNX Nifty and will be managed by Satyabrata Mohanty.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Birla Sunlife Mutual Funds: http://prajnacapital.blogspot.com/2011/...

Short-Term Bond Funds

These are schemes that invest in fixed income instruments of short durations. Short-term bond funds with less than one year duration are good investment options provided you have a one-year investment horizon. Lower average maturity of the fund ensures that the fund NAV is not hit much when short-term interest rates move up. We expect the RBI to hike the policy rates by 50 to 75 basis points in this calendar year. That makes it a bit tricky for short-term bond fund investors. Check the average maturity and exit load before you invest in a short-term bond fund. As a rule of thumb, the average maturity should be less than your investment time frame. Some funds do charge an exit load if you log out early. To avoid such a cut in the returns earned, it is better to check at what threshold of time the fund charges an exit load. The funds have a wide range of 'exit load' thresholds. Some charge an exit load if you were to redeem units within 90 days, while there are some that let ...

Short-Term Investment Options in Mutual Funds

Mutual funds offer liquid funds and ultra short term funds in the debt category, which are suitable for short investment periods. Ultra short-term funds were earlier known as liquid plus funds. Liquid funds invest in money market instruments with a maturity of 91 days or less. However, there are no such restrictions for ultra short-term funds. Who should invest in these? These are open-ended schemes. Investors with a short investment horizon or with surplus cash and low risk appetite should look at these. These could include corporate as well as retail investors. Those interested in staying invested for less than 15 days can opt for liquid funds. Retail investors who want to remain invested for two-four months, can look at ultra short-term funds. The short duration for both liquid and ultra short-term funds shields them from any interest rate volatility.   What kind of returns do they offer? In terms of an investment period less than 15 days, these funds are comparable to a ba...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now