Apple Savings Account vs Others – Full Comparison

This exciting development has sparked a buzz in the finance community, with many savers considering this new option as a potentially lucrative alternative to traditional savings accounts. So, let’s take a deep dive study to find out where does Apple Savings Account rank and is Apple’s high yield savings account worth it?

To gain a quick understanding between Apple savings account vs others, read this data in a tabular form.

Cross-reference: Here are 8 interest savings accounts offering 5% APY

Now that you have a basic idea, let’s compare Apple Savings Account vs 8 other banks operating in the US.

1. UFB Premier Savings

The UFB Premier Savings Account offers up to 4.81% APY, no fees or minimum deposit, a free ATM card, digital banking tools, and free direct deposit transfers. It’s a flexible and affordable option for those looking to earn interest on savings.

2. Bask Interest Savings Account

Bask Bank Interest Savings Account offers up to 4.75% APY, no maintenance or service fees, and no minimum balance requirements. However, the account may be closed if left unfunded for 15 days.

The bank provides digital tools for remote banking, and free transfers between direct deposit accounts, but no ATM or debit cards.

Also Read: How to Buy Apple Shares in India?

3. Salem Five Direct eOne Savings

With no minimum balance or monthly fees, the Salem Five Direct eOne Savings account offers an industry-leading 4.61% APY rate and $250,000 FDIC insurance.

The account provides digital tools such as mobile banking, text alerts, and external transfers to make saving easy and convenient.

4. Bread Savings High-Yield Savings Account

The Bread Savings High-Yield Savings Account offers a competitive 4.65% APY2 with just a $100 minimum opening deposit. FDIC-insured up to $250,000, it has a maximum deposit limit of $1 million per account and $10 million limit per customer.

There are no hidden fees, and free ACH transfers, online statements, and incoming wire transfers make it easy to manage your money.

5. CIT Bank Savings Connect Account

The CIT Bank Savings Connect Account offers a high interest rate of over 11x the national average, along with digital convenience through online banking and a mobile app.

With easy account opening and FDIC insurance, it’s a smart choice for growing your savings quickly and securely.

6. TAB High-Yield Savings Account

The TAB High-Yield Savings Account is a great option for savers, offering a 4.40% APY, no balance caps or monthly fees, and no minimum deposit required.

With online and mobile banking access and FDIC insurance, it’s a convenient and secure way to grow your savings.

7. LendingClub High-Yield Savings Account

The LendingClub High-Yield Savings Account offers a competitive 4.25% APY on your entire balance and freedom from fees, including no monthly service fees and no minimum balance requirement after an initial $100 deposit.

With a free ATM card, it’s a convenient and cost-effective way to grow your savings. Its APY comes the closest to Apple savings account comparison.

8. Apple Savings Account

Apple savings Account interest rate is 4.15% which is quite impressive even though not the best. If we estimate Apple Savings Account rank among the other high-yielding savings accounts, it will come in at around 7^th or 8^th rank. But this solely depends on user discretion as someone already using Apple card would find it much higher in rank as compared to others.

Recommended: Can You Get CashBack With Apple Pay?

9. Ally High-Yield Savings Account

The Ally High-Yield Savings Account offers a high-interest rate of 3.75%, with no fees or minimums required. Additionally, 24/7 support is available, providing peace of mind knowing that help is always there when you need it.

What do you Need to Open Apple Savings Account?

Since the scheme has been launched for US citizens only hence, the preliminary requirement for the same is that you should be an adult with a physical US residence.

• You should have an active Apple Card account with Apple Card added to your iPhone wallet.
• You need to have your iPhone updated to the latest version of iOS.
• Additionally, you need to set up two-factor authentication for your Apple ID for safety reasons, of course.

If you do not have an Apple Card, you can apply & set it up here.

How to Set up Apple Savings Account?

You can easily set up Apple Savings Account via Apple Wallet & Apple Card settings as follows:

1. Launch the iPhone Settings. Tap on Wallet & Apple Pay option.

2. Next, tap Apple Card added to the account and then, More button.

3. Choose Set Up option for Savings Account & follow the on-screen instructions as displayed.

Is Apple’s High Yield Savings Account Worth It?

The new high-yield savings account offered by Apple seems like a great opportunity to earn an impressive 4.15% APY without any monthly fees or minimum deposits. Furthermore, the Daily Cash rewards earned with an Apple Card can be conveniently deposited into this account.

However, financial experts advise that there are other comparable or even better high-yield savings accounts available in the market, and it’s essential to conduct personal research to find an account that suits individual financial needs.

There are many accounts providing a higher rate than Apple’s account, as we have already seen. Only one comes anywhere near Apple savings account comparison, and one offers a lower rate than it.

While high-yield savings accounts are generally secure and lucrative, it’s crucial to evaluate one’s unique financial situation and goals before making a decision. Ultimately, the most beneficial savings account is the one that helps reach individual financial objectives.

Source: Apple Newsroom, Apple support

The post Apple Savings Account vs Others – Full Comparision appeared first on Moneymint.

Whether you’re a savvy shopper, a frequent traveler, or someone who values convenience and efficiency in banking, our list caters to all. Each card has been evaluated based on factors like transaction limits, ATM withdrawal benefits, international usage, cashback offers, and additional privileges.

22 Best Debit Cards in India: Features & Comparison

Here are some of the best debit cards in India:

1. ICICI Bank Coral Paywave International Debit Card

Annual fee: Rs. 599 + GST

It is one of the most secured NFC powered Visa Paywave debit cards with contactless payment facility. This card offers many discounts and cashback bonuses on various online purchases and merchant’s shops in India. Customers can also get Payback reward points for online purchasing. This card is suitable for online purchasing, international payments, maintaining lifestyle, and travelling. It was the first bank in India that offered a Contactless payment facility to its users.

Best features of this debit card:

• Bookmyshow, Inox, Carnival Cinema, and others offer free movie tickets to its users.
• International payment facility.
• Various online and offline benefits.
• Low renewal fees with many facilities.
• 2 free Lounge access for users of this card at different airports.
• High withdrawal limit (1 lacs at domestic ATMs and 2 lacs for International).
• High online payment limit.

2. HDFC Bank RuPay Premium Debit Card

Annual fee: Rs. 200 + GST.

This is one of the best Rupay powered card. It is suitable to use for online purchases on Indian websites. After connecting to Paypal, users can purchase on international eCommerce websites. This HDFC debit card provides a very high purchase limit for online and PoS terminals. It also provides Rupay exclusive benefits on different online purchasing sites.

Features of this card:

• Discount offers on different eCommerce sites.
• High Online purchasing limit up to Rs. 2.75 lacs.
• Cashbacks offer such as 5% cashback offer on utility payment bills for selected sites.
• Cashback on booking railway tickets.
• 2 free Lounge access for users of this card at different airports.
• Low ATM renewal fees.
• Most suitable for grocery, utility bills, and online payments.

3. Kotak Bank PayShopMore International Chip Debit Card

Annual fee: Rs. 750 + GST.

This Debit card is one of the most features riched debit cards of Kotak Mahindra Bank powered with Visa and provides many online purchasing offers on Indian sites. This Debit card gives you the facility of international transactions and cash withdrawal anywhere around the globe.

Features of this card are as follows:

• Protection of up to Rs. 2.50 lacs for the lost card.
• Protection of up to Rs. 50,000 for online payments.
• Cashback offers.
• Customize the look of your Debit card.
• Free domestic and international airport lounge access.
• Suitable for travelling and online purchasing.

4. Axis Bank Burgundy Debit Card

Annual Fee: Rs. 3000 + GST

One of the best Contactless premium debit cards powered by Mastercard available in the Indian market. This ATM card has the highest withdrawal limit in India. You require to maintain the least balance of Rs. 10 lacs if you want this debit card or have to pay a renewal fee, which will be very high.

Features of this card:

• High online payment limit.
• High ATM cash withdrawal limit.
• Cashbacks and free tickets offer.
• For this debit card, the daily cash withdrawal limit is 3 lacs, and the online payment limit will be 6 lacs.
• Louge excess with VIP facility at the airports.
• Up to 6 lacs will charge for lost card liability.

Also Read: 10 Best Credit Cards For Freelancers In India

5. SBI Platinum International Debit Card

Annual Fee: Rs. 175 + GST

This is one of the few cards of SBI with international facilities and offers many other facilities. The wide network of SBI gives you the facility to withdraw cash anywhere. This debit card of SBI comes with both Visa and Mastercard gateway network.

Best features of this card:

• International payments.
• High online payment limit.
• High cash withdrawal limit.
• EMI on Debit card purchases for selected users.
• Low card renewal charges.
• Free lounge access facility at the airports
• Reward points with the online purchase.

6. HDFC Bank EasyShop Platinum Debit Card

Annual Fee: Rs. 750 + GST

HDFC Bank EasyShop Platinum Debit Card is one of the most popular debit cards offered by HDFC Bank. This debit card helps customers save money in several ways. It offers 1% cashback as a reward when you pay using this debit card online or at any retail store. This card has a daily cash withdrawal limit of Rs. 1 Lac, whereas, for online shopping, the limit is Rs. 5 Lacs.

Features and Benefits:

• It offers a high cash withdrawal limit and an online shopping limit.
• Customers earn cashback and rewards when payment is made using this card on Supermarkets, Groceries, or any online stores.
• International transactions can also be availed once activated using HDFC Bank Net Banking
• You can avail EMI facility from some popular eCommerce sites like Amazon and Flipkart if your card is eligible.

7. ICICI Bank Coral Debit Card

Annual Fee: Rs. 599 + GST

ICICI Bank Coral Debit Card showers you with a lot of exciting offers and rewards. It has multiple offers for your dining, entertainment, shopping, and every transaction. Moreover, you get offers and gift vouchers when you apply for this card.

Features and Benefits: 

• The customer receives a bonus of 1000 PAYBACK reward points when they use their card for their first transaction, either for online shopping or retail purchasing.
• The card comes with Emergency Assistance and Fraud Protection.
• It covers some insurance, such as – Air Accident Insurance worth Rs. 20 Lakhs, Personal Accident Insurance worth Rs. 10 Lakhs, and Purchase Protection for Rs. 2.5 Lakhs for goods bought from this card.
• A 20% discount is offered on hotels for a minimum stay of 2 nights.

Also Read: What Are The Types Of Credit Cards & How They Work In India?

8. IDBI Visa Signature Debit Card

Annual Fee: Rs. 799 + GST

IDBI Bank offers a number of debit cards for its customers, and IDBI Visa Signature Debit Card is one of them. This card lets the customers avail of many privileges and offers in shopping, fine dining, health, and fitness, etc. These are issued on the Visa Signature platform.

Features and Benefits:

• Customers using the Signature debit card get the privilege of free access to airport lounges, which are limited to two lounge visits every year.
• The insurance coverage offered with this card is – Air Accident Insurance worth Rs. 25 Lakhs, Personal Accident Insurance worth Rs. 5 Lakhs, Fire, and burglary worth Rs. 50,000, etc.
• The online transaction limit per day for this card is Rs. 3 Lakhs, where you can use this card to book travel and movie tickets online and avail maximum discounts.

9. Bank of India RuPay Platinum Debit Card

Annual Fee: Rs. 200 + GST

Bank of India RuPay Platinum Debit Card offers different reward rates at multiple levels where you get to select your most preferred category to avail several rewards. The offers that make RuPay platinum card more profitable and attractive is the Airport Lounge access and also cashback on bill payments.

Features and Benefits:

• This chip-based card is available for both domestic as well as international usage.
• The daily limit for online transactions is Rs. 100000.
• The ATM transaction limit per day is Rs. 50000.
• Bill payments made using the RuPay Platinum card are eligible for availing 5% cashback up to Rs. 50 per month.

10. Central Bank of India RuPay Platinum Debit Card

Annual Fee: Rs. 100 + GST

Central Bank of India RuPay Platinum Debit Card is an EMV chip-based card that can be issued under the RuPay platform. This card is accepted domestically as well as internationally. It offers a reward rate of 0.375% and also the domestic airport lounge access for two lounge visits in a year.

Features and Benefits:

• Customers get 5% cashback up to Rs. 50 per month on making utility bill payments using this card.
• Some of the Insurance Coverage offered by this card is – Personal Accidental Death Insurance worth Rs. 2 Lakhs, Personal Air Accident Insurance worth Rs. 8 Lakhs.
• You can avail Buy 1 Get 1 offer at Café Coffee Day and also Rs. 1500 off on some mobile phones at The Mobile Store.

11. IDFC First Visa Signature Debit Card

Annual Fee: Nil

IDFC Bank launched the IDFC First Visa Signature Debit Card after merging with the Capital First. This card does not offer any reward points yet, and to get this card, an average monthly balance of Rs. 25,000 is mandatory.

Features and Benefits:

• It offers cashback of Rs. 250 per month on BookMyShow when you book your tickets using this card.
• Customers using this card can be eligible for some free Insurance Coverage like Permanent Disability Insurance, Death Insurance, etc.
• Other benefits of this card include a 1% fuel surcharge waiver, which is relatively lower and no annual fee.
• Domestic Airport Lounge Access.

12. SBI Platinum Debit Card

Annual Fee: Rs. 175 + GST

Issuance Fee: Rs. 100 + GST

SBI Platinum Debit Card gives you the convenience of experiencing cashless shopping with SBI while you earn SBI Rewardz for it. This card earns 1 SBI Rewardz for every purchase of Rs. 200/-, be it shopping, dining, or travel. These SBI Rewardz Points earned can be collectively redeemed for gifts and offers.

Features and Benefits:

• The card offers insurance coverage of Rs. 5 Lakhs against accidental death.
• The SBI Platinum Debit Card enables International Usage, which lets you travel the world and make transactions anywhere using this card.
• This card is also associated with VISA and MasterCard.
• This card can be used to make a purchase of Rs. 2 Lakhs per day, whereas you can withdraw up to Rs. 1 Lakh per day.

13. Yes Bank Prosperity Platinum Debit Card

Annual Fee: Rs. 599 + GST

The Yes Bank Prosperity Platinum Debit Card comes with many advanced benefits and privileges to make your daily transactions much easier. The card offers greater security and reliability. Moreover, it provides a huge number of reward points on international transactions. The default reward rate on this card is 0.125%.

Features and Benefits:

• The card offers 1 reward point on every purchase of Rs.200.
• The reward rate is accelerated 4 times on international spends; that is, it becomes 0.5%.
• If you book your movie tickets on BookMyShow using your Platinum debit card, you will be eligible to avail Rs. 100 off twice in a month.
• Domestic Airport lounge access.

14. Axis Burgundy World Debit Card

Annual Fee: Nil

Axis Burgundy World Debit Card is a perfect choice if you are someone who travels a lot. This card gives you a variety of travel benefits. Its new contactless feature lets you experience faster and safer shopping in selected stores. It comes with the best banking solutions and some enhanced features like high transaction limits and free ATM withdrawals from any bank’s ATM.

Features and Benefits:

• The card offers many exciting offers, which include discounts at some restaurants, movie tickets, insurance covers, and fuel surcharge waivers.
• You will earn 2 edge royalty points for every Rs. 200 spent within India and 6 edge royalty points for every Rs. 200 spent internationally.
• It offers complimentary lounge access at some selected airports in India to make your travelling more comfortable.

15. HDFC Women’s Advantage Debit Card

Annual Fee: Rs. 150 + GST

HDFC has launched this card exclusively for women. The HDFC Women’s Advantage Card mainly focuses on your shopping needs as it offers great cashback on insurance, mutual funds, fuel, and more. You will earn 1 reward point on every purchase of Rs. 200 on SmartBuy, Telecom, PayZapp, Utilities, Groceries, Supermarkets, etc. The points earned are valid for a year.

Features and Benefits:

• The card offers protection against fire and burglary of up to Rs. 2 Lakhs.
• The customer enjoys a 50% discount on locker fees for the 1st year.
• It offers Insurance Coverage against death by air/ road/ rail worth Rs. 5 Lakhs.
• This card supports contactless payment, which helps you facilitate fast, easy, and secure transactions at any retail outlet.

16. JetPrivilege HDFC Bank World Debit Card

Annual Fee: Rs. 500 plus GST

JetPrivilege HDFC Bank world Debit Card is one of the best debit cards in India. It is intended especially for tours and travels. All the money spent on travelling per month can be transformed to JP Miles through this card, that can be then used in flights, free of cost. It also comes with various features, such as Free Personal Accidental Death Insurance, savings for buying fuel at any domestic petrol pump, etc.

Features and Benefits:

• 3,000 JPMiles as Welcome Benefit.
• Discount vouchers for flight tickets when you book on the official website of Jet Airways.
• Earn 2000 JPMiles as well as discount vouchers on renewal.
• JPMiles Programme: Earn 2 JPMiles for every Rs. 150 that you spend when you purchase tickets at Point-Of-Sale.
• 5% discount for booking any domestic ticket through Jet Airways.
• Insurance cover worth Rs. 25 lacs.
• 0% Surcharge for filling fuel at any petrol pump in India.
• The MasterCard Lounge Access Program allows access to many lounges in Airports anywhere in India.

17. HDFC Times Points Debit Card

Annual Fee: Rs. 650 plus taxes

It is an online Debit Card, and a popular one, available for both residents and NRIs. It is available with a several benefits for aspects like online shopping, dining grocery partners, etc. You can earn Times Points for every shopping you do and obtain maximum rewards.

Features and Benefits:

• Insurance amount of Rs. 2 lakhs in case of fire and burglary.
• Transactions above Rs.5,000 can be converted to EMIs at no additional cost, for purchasing smartphones, apparel, furniture, and electronics.
• Daily domestic Shopping Limit of Rs. 3.5 lakh
• Daily domestic ATM Withdrawal Limit of Rs. 1 lakh
• Complimentary lounge access at all airports in India.

Also Read: 28 Best Credit Card in India

18. Axisbank Prime Titanium Debit Card

Annual Fee: Rs. 150 plus taxes

This card is a coveted basic debit card provided by Axis Bank, and there are many reasons for this. It gives the liberty of having money in your hands at all points of time, without carrying a heavy wallet while shopping, eating out, etc. It allows smooth and easy transactions and offers several perks as reward points for transactions using this card.

Features and Benefits:

• Debit Card PIN can be created anywhere and anytime.
• ATM withdrawal limit of Rs. 50,000.
• Shopping transaction limit of Rs. 1 lakh.
• With MyDesign, create your individual style by getting your desired picture printed on your card.
• eDGE Loyalty Rewards Program for transactions, swiping your card, etc.
• Insurance coverage of Rs. 3 lakhs in case of accidents or death.

19. Axis Priority Platinum Debit Card

Annual Fee: Nil

Axis Bank has designed this card especially for its Priority customers. This is a unique debit card, created to highlight exclusivity, is filled with various thrilling and rewarding features and benefits, that are available with transaction by this card.

Features and Benefits:

• Earn cashback when you spend on movies.
• Daily cash withdrawal limit of Rs. 1 lakh.
• Daily limit of Rs. 4 lakhs for purchasing using this card.
• No charge or fee required for withdrawing cash from any domestic ATM.
• Axis Bank Dining Delights program allows discounts of more than 15% at over 4,000 restaurants in India.
• Fuel surcharge waiver amounting to Rs. 200 each month.
• Insurance coverage of Rs. 5 lakhs in case of accidents or death.

20. Indusind Signature Exclusive Debit Card

Annual Fee: Rs. 5000 plus taxes in first year, Rs. 1500 plus taxes from the next year

IndusInd Bank Signature Debit Card offers exciting features and benefits, greater convenience in terms of usage, and choice of not carrying a wallet heavy with money, for shopping, entertainment and dining purposes. It allows customers to make payments and transactions just by one swipe of the card.

Features and Benefits:

• Along with cashback on transactions, you can get IndusMoney points.
• Bonus points of 500 for first swipe, 200 for activating the card at any IndusInd Bank ATM, 100 for activation of mobile banking.
• Daily cash withdrawal limit of Rs. 1.5 lakhs.
• Daily limit of Rs. 3 lakhs for purchasing using this card.
• Fuel surcharge waiver amounting to Rs. 250 each month.
• Insurance coverage of Rs. 2 lakhs in case of accidents or death.

Also Read: CRED Credit Card Apply Process Explained

21. SBI Global International Debit Card

Annual Fee: Rs. 125 plus taxes for annual maintenance

This card is one of the best debit cards in India. It provides several benefits such as cashless transactions, easy bill payment, access to merchant outlets in India, etc. You also get access to more than 43,000 ATMs all over India. Cashbacks and discounts on online purchases on websites like Flipkart and Amazon are also available, along with SBI Rewardz points.

Features and Benefits:

• Shopping at 52 Lakh merchant outlets in India, and more than 30 million international outlets.
• Purchasing movie tickets, paying for bills, travelling and other online purchases and online transactions.
• Cash withdrawal from 43,000 SBI ATMs or other ATMs, both domestic and global.
• Safe and secure online shopping and e-commerce transactions.
• Maximum 5 daily transactions without pin can be conducted using NFC enabled Card in NFC terminal, up to Rs. 5000.
• Daily cash withdrawal limit of Rs. 40,000.

22. HSBC Premier Platinum Debit Card

Annual Fee: Nil

HSBC Premier Platinum Debit Card comes with numerous privileges and is perfect for your daily purchasing needs. The HSBC ATMs, as well as the affiliated ATMs, give you access to a number of merchant outlets In India as well as worldwide. You can also earn extra loyalty points as you make your expenses. These points can later be redeemed at merchant outlets.

Features and Benefits:

• Daily cash withdrawal limit of Rs. 250000.
• Access to best dining privileges in metro cities of Mumbai, Bangalore, Delhi, and Kolkata.
• 24-hour access to concierge services and advantages as a HSBC Premier Platinum Debit Cardholder.
• Earn reward points for purchases at specified merchant outlets and banking transactions.
• The Lost Card Liability Feature gives insurance against loss of a card, if it is reported within 30 days.

Recommended: 11 Best Forex Cards in India

You may get a huge variety of debit cards to choose from, as every bank offers several debit and credit cards of different categories. All the debit cards mentioned above are best and preferable, but it depends on you, as a customer, to consider every aspect of it before opting for one. You should first calculate your requirements and then check for the option that meets most of them. Also, make sure you trust the bank before opening a bank account.

The post 22 Best Debit Cards in India: Features & Comparison appeared first on Moneymint.

If you are a salaried person, you probably want to preserve your savings with the banker; this would require you to open a savings account. Whereas, for businessman, you need to make several payments every day and also require to deposit your cash receipts, make cash withdrawals with an upper limit, and make use of cheque extensively. In this case, the savings bank account will not solve the intended purpose, and you would need the current account to meet your business requirements.

The government of India had also launched the Jan-Dhan Yojna scheme five years ago, which was aiming at opening/maintaining at least one bank account at every household in the country. Due to which ample wagers/laborers across the country opened their bank account and government successfully able to bring banking services to the wide-ranging rural sector. The savings bank account was opened comprehensively under this scheme.

Savings Account vs Current Account: Difference & Benefits

What is a Savings Account?

Savings Account is a basic type of bank account owned by a majority of people in a country. A savings account acts as a safe storage place that allows you to deposit your money and withdraw it anytime while earning a nominal amount of interest. Numerous banks, financial institutions, credit unions issue the opening of savings account.

You can choose among a plethora of bank accounts as some savings accounts have a higher interest rate than others. Usually, the average interest rate you earn on your deposits in savings accounts ranges between 4% to 6%. 6% is considered to be an excellent interest rate if any financial institution or bank offers it.

A savings account can be opened individually or jointly. Almost all the banks require an account holder to keep a minimum deposit into their salary savings or regular savings bank accounts to keep it operational and to avoid any extra cost. However, senior citizens, minors, or women can opt for another option that is a zero balance savings account. In this type of account, you are not required to keep any minimum balance in your account.

What is a Current Account?

The current account is particularly meant for people who are owning a business and want to keep effortless day to day transactions. Usually, the current account is opened by business entities such as LLPs, firms, sole proprietorship, partnership firms, and many others.

You might be thinking, why is it not feasible for a business person to open a savings account? The sole reason is the current account has a lesser number of restrictions in regard to the number of cash deposits and withdrawals. It offers significant liquidity to its users; however, unlike a savings account, it does not offer any interests on the deposits made within the current account.

The current account can be used for cheque as well as electronic transactions, similar to the savings account. Also, the bank does not deploy funds kept in current accounts as account balance tends to fluctuate extensively depending on the nature of business and its cash needs.

Savings Account vs Current Account: Difference

Both the accounts are equipped with different features and are designed for diverse purposes. Savings account intended to an individual needs, whereas the current account caters to the needs of firms and companies to carry out persistent banking transactions.

The current account is unlike Savings account in various ways and aspects. Both the accounts address the different financial needs of a user and manage money more efficiently. Listed below are the leading points that will brief the difference between a savings account vs current account:

1. Purpose

The first thing to identify is your purpose of opening the account. Once you have determined your needs, you are all set to open an account in the bank.

Primarily, the savings account is designed to promote and encourage the savings of individuals. If you intend to carry out limited transactions and just want to keep your deposits/income/salary in your account and use it for your monthly expenditure, then a savings account is the most feasible option you can go for.

If you are running a business and you need to carry out multiple transactions daily, just like trades, retailers, industries, companies, or service organizations, current account contemplate solving all your purposes.

2. Balance

Apart from a zero balance savings account, you are required to maintain a minimum balance in your account. Usually, the minimum balance amount for a savings account is nominal. However, users are required to keep a larger minimum balance in their current account as compared to the savings account.

Savings account minimum balance ranges between Rs. 1000 to Rs. 5000. There are a plethora of current accounts that you can open, which depends on the category of the current account you are opting for and the bank you are choosing to open your account in. One current account can be opened, keeping a minimum balance of Rs.10,000 and the other account may need you to keep a minimum of Rs. 5 lakh in your account.

3. Overdrawing

The first essential thing to know is what is overdrawing or overdraft facility? This facility is provided by the banks to their customers who are holding an account and allow you to withdraw more money from your account than what is actually remaining. If you avail of such a facility, it will be said that your account is overdrawn.

In the case of Savings account, banks do not offer an overdraft facility. However, current account users are eligible to avail overdraft facility as numerous transactions are conducted in the current account each day. Sometimes, it may happen that the remaining funds in the account are not adequate to meet cheque payments. To avoid the situation of the cheque being dishonoured, the bank grants a short period loan to the current account holder and lets his account to be overdrawn to meet the payments.

4. Interest

The savings account offers interest on funds deposits to all customers. The interest rate is not very high, as usually it 4.5% per annum on the deposits within your account. Although, interest is calculated on the daily outstanding balance, the interest you have earned is paid by the bank after every 3 months or 6 months, depending on the bank.

As the Current account has fluid nature that allows frequent transactions, it is used for business purposes, and the deposits are not entitled to earn any interest. However, some banks offer a sweep-in facility. It means once you reach a certain limit of funds, the amount itself transferred to the fixed deposit, that is entitled to earn interest.

Note: If you are looking to avail of higher interest rates, it is recommended to invest your money in fixed deposits rather than keeping in a savings account as the interest rate is low.

5. Withdrawals

Savings account users get a specific number of free withdrawal transactions monthly. The bank charges some amount for making every withdrawal if you cross the limit of the free transactions. Whereas, current accounts allows its users to carry out seamless transactions for a business.

Both the accounts have their own pros and cons; it cannot be considered that which one is better or superior. It is entirely up to the account holder and depends on the individual’s needs and suitability based on which they need to decide to open their account as savings or current.

Also Read: 10 Best Current Bank Account For Small Business In India

Benefits of Savings Account

Listed below are the top advantages of having a savings account in a bank:

1. Easy Money Access

The savings account has made it very convenient for its users to access money anytime, anywhere in case of an emergency. The funds that are already deposited in your bank account can easily be withdrawn to cover an unforeseen expense. All the users of savings account have 24X7 access to their account through net banking. You just need to activate it on your mobile or any other electronic device.

You can effortlessly withdraw your money by using ATM, online banking, bank teller, etc. However, you need to know that most of the banks allow six free electronic transfers and five free ATM withdrawals per month. Once you cross the limit, you get charged extra for each transfer or withdrawal you make.

Some banks also allow you to link your savings account to another account that facilitates the transfer of funds and help you save money by avoiding costly overdraw fees. You can even transfer the funds even in non-banking hours.

2. Accrue Interest on Deposits

Saving account makes you earn interest on your deposits that are made in your account. The interest rate keeps on fluctuating as per the economic and financial factors. For instance, the rate of interest in 2012 was 8%; however, in 2020, it has dropped down significantly, which is circa 3.5%. Your account is credited with the interest every quarterly or half-yearly.

The interest rate is calculated on the amount of money deposited and maintained in your bank account. Even though the interest rate is too little looking over at the current situation, still you have better-earning potential than keeping your money at your home.

3. Money is Safe

It is safer than keeping it at your own home as if any natural calamity occurred or your home catches fire by any chance or might become a target of a well-planned robbery; you could lose all your cash.

Even though your money is held by the third party, your money is kept safe in the savings account. As National Credit Union Share Insurance Fund insures credit unions and Federal Deposit Insurance Corporation insures banks that ensures your money remains in the safe hands.

4. Open an Account with Smaller Amount of Money

Opening a savings account is very easy, and you can open it with very little money. It does not require a huge minimum balance. Even the banks offer no or very low initial deposits options. Many banks also offer a waiver on fee waiver and interest advantages if you open your savings account in their banks. They may also attract you with additional options and services that are advantageous for you.

It is also feasible for a young person or non-earner to open a savings account, as it may help them to save their money and deposit them into their account in bits and pieces, rather than keeping it into a piggy bank.

5. Set Automatic Deposits and Payments

Savings accounts have made automated payments viable. Many financial institutions allow the deposits to be made and payments to automatically deduct from your account on a particular date. It immensely saves time as you do not need to spend your valuable time in low-value activities such as making bill payments, EMI’s, or any other monthly loan payments. This will also help you save late fees as you are not likely to miss or forget your upcoming payment.

You need to ensure that there should be sufficient funds in your account before the date on which the payment is deducted each month. If not, your credit score will be adversely affected, and you would be charged extra by the bank for dishonoring the payment.

This account also lets you set monthly or weekly automatic deposits from your checking account into your savings account. It will help you save your money, not letting you incurring any unnecessary or avoidable expenditures. Even if you would spend extravagantly, you won’t need to worry about your savings as it will already be procured if you have activated automated deposits.

6. Facilitates the Saving Process

Savings account entirely solves your purpose of keeping your deposits separate from your other money, such as long term investments, cash in hand, or money in current accounts. Savings account motivates you to save and make frequent deposits as you see your money growing in it with time.

Savings account emerges as a significant asset if you are saving for a specific purpose, no matter whatever your goal is; wedding, children’s education, buying a new house, investing in gold, or some other valuable asset.

Furthermore, you are fully secured as all your deposits are being accumulated in your savings account for worst-case scenarios such as if you lose your job, or your business has incurred heavy losses, your savings account will act as a backup or an insurance policy for these tough and unforeseen times, and will also help you come out of that situation.

7. Can be Linked With Your Current Account

Several financial institutions and banks provide this facility of connecting it with a savings account to your checking account. It has proven out to be very useful for various account holders.

If both your accounts are linked, you can easily transfer the funds from your savings account to your current account in case of an emergency or you are experiencing a lack of funds in your current account. This will help you avoid incurring overdraft charges, late payment fees, and can cover other shortfalls.

Benefits of Current Account

The current account has ample advantages for its users, which are mentioned below:

1. Segregate Business Finance from Personal Finance

A current account helps in bringing about a distinction of what is pertaining to the personal financial situation of the proprietor and the finance pertaining to the business.

Opening a current account will not only help you manage your finance in a much better way but also help you analyze and demonstrate the entire financial situation of your business at any point in time. If a businessman will not segregate his personal income from business income and the proprietor’s personal income is healthy, then the proprietor may not be able to gauge that the business is running at a loss or making profits.

2. Unlimited Transactions

The current account has enabled its users to carry out as many transactions in tune with the nature of the business; they will neither be charged extra for cash withdrawals nor for making transfers to other accounts. So, you do not need to keep track of the number of transactions you have already made, and you are free to make unlimited transactions.

3. Overdraft Facilities

It is one of the greatest benefits of the current account as the situation of ups and downs is experienced by almost every business. You might be facing a troublesome situation of not having sufficient money in your current account to pay for raw material, or you might have given a cheque to your vendor without having needful funds in your account. In such cases, banks understand the situation and provide current account users with the perk of letting their account overdrawn in case of any shortfall in funds.

It is similar to short-term borrowings on which the interest may or may not be levied as it depends on your credibility and other factors.

4. Multi-City Banking

You can easily operate your current account even while you are not in your city, where you have opened your account. With the help of online banking services, you can operate and manage your account from multiple cities, which significantly helps you in consolidating your current account transactions uniformly.

Even if you have a retail outlet or some business in other cities, you can use that city’s bank branch to deposit and carry out other transactions into your current account.

Also Read: Top 10 Non-Banking Financial Companies (NBFCs) in India

5. Boost your Credit Ratings

If you can manage your current account inflows and outflows efficiently, it will definitely prove your creditworthiness and enhance your credit score.

If you have a current account in a reputed bank, you do not need to issue a letter of credit to foreign counterparties if you are into import/export business.

You might have heard or noticed, when you apply for a loan or a credit card, having a current account in a bank itself eases the process a bit for qualifying for the loan. Even if you would just give a letter stating that you hold a current account in their bank, interbank connections can also check your creditworthiness. Having a current account facilitates the whole process for you as well as for a loan provider.

6. Conduct Foreign Transactions

If you are involved in money exchange businesses, you are not required to open a separate account to carry out foreign transactions. Opening a current account that support forex facilities will solve your purpose.

7. Issue of Bank Guarantee

It is a facility provided by the bank that helps your business in many ways as a bank guarantee is demanded by many vendors and customers. You can only be able to avail of the bank guarantee services if you can maintain your account efficiently. Bank guarantee services prove out to very beneficial if you import raw materials or undertake export.

8. Offer Numerous Additional Services

All the banks and financial institutions want the users to open a current account as the money deposited in the current account does not accrue interest, and they need not pay it. As a result, various useful features like doorstep banking, 24X7 phone banking, internet banking, and mobile alert services are already equipped in the current account kits. It means you need not pay any extra amount for these services.

Checking account provides ease in banking transactions as it offers numerous value-added services at no additional cost. Some of the services offered are free inward remittances, multi-location transfer, deposit and withdrawals at any location, personal relationship manager, and periodical statements.

The current account helps in carrying out easy and rapid banking transactions, which is imperative to run a business seamlessly.

9. Signify Professionalism

It is vital to maintain professionalism in the modern era. While you deal with any business acquaintances, a current account will indicate your business name, which is an essential factor to establish your company’s name, grow, and enhance your business image. Also, the cheques you will issue will be carrying the name of your current account, exhibiting your company’s name.

Final Words

It is imperative to do a comprehensive research before finalizing and opening the type of account that caters to all your troubleshooting needs. We also believe that one should analyze their requirements before selecting the bank to open their account, as different banks have different terms and conditions.

Recommended: SBI Savings Plus Account Review: Interest Rates, Minimum Balance

We hope that we are able to solve all your questions related to the difference between savings account vs current account. If you still have any doubts or want to add some valuable information to our blog,

we are always open to your suggestions. You can write to us in the drop-down section of the comments.

The post Savings Account vs Current Account: Difference and Benefits appeared first on Moneymint.

What is a Joint Account?

A joint bank account is a savings account that is owned and operated by two or more individuals. All the holders of the account will have access to the cash in the account, and all of them can carry out the cash related transactions. Joint accounts are usually opened by a married couple, close family members or business partners.

Benefits of Having A Joint Bank Account

Opening a joint bank account can prove to be beneficial for family members or business partners in several ways:

• Having a joint account makes it easier for family members to save towards a shared goal like for a new home, a new vehicle or a vacation.
• Pooling your money with family members or business partners makes it easier to meet minimum balance requirements.
• All the account holders can oversee the transactions that are being carried out. This reduces the risk of money being misused.
• It makes it easier to pay shared expenses using only a single account.
• Joint accounts considerably reduce the number of fees you pay to the bank.

Risks Involved In Joint Accounts

While there are a lot of benefits that come with a joint account, there are a few risks involved as well.

1. Shared Access To Money: You should keep in mind that all the account holders will have equal access to the money in the account. This increases the risk of the money being stolen or misused by certain members.

2. Shared Responsibility Of Debt: When you have a joint account with someone, you also share the responsibility of debt. If one of the account holders get into debt that he/she can’t repay, even you might end up having a bad credit score.

Types of Joint Accounts in India

Banks in India offer a variety of joint account types for various authoritative and accessibility purposes. Knowing the different types of joint accounts can help you make the right decision. Here is a list of all the joint account types and their functionality.

1. Either Or Survivor

This is the most popular account type in India. Only two individuals can open an Either or Survivor account. There is a primary account holder and secondary account holder. Both of them can access and operate the account. If one of the account holders dies, the survivor will be paid the final balance. The survivor can choose to continue the account as a regular account if needed.

On the event of the death of both the account holders, a separate nominee will be given access to the account and the funds.

2. Anyone Or Survivor

This account is very similar to the Either or Survivor account in functionality, the only difference being that this account type can be opened and operated by more than two people. This account type is very useful to open joint accounts for an entire family or a business with more than two partners. All the account holders have access to the account and can perform account-related transactions. If one of the account holders dies, the others can continue the account without any hindrance. The final balance will be paid off to the survivor.

3. Former Or Survivor

This account type again can be opened only between two individuals. There is a primary account holder and a secondary account holder. But, only the primary holder account holder has access to the account and can operate it. Upon the death of the primary account holder, the ownership and the access to the account are transferred to the secondary account holder. The secondary account holder can claim all the funds and close the account or choose to continue it as a normal account.

4. Latter Or Survivor

This account is very similar to the previous account. But, instead of the primary account holder, the secondary account holder has access to the account and can operate it till he/she is alive. When the secondary account holder dies, the ownership is transferred to the primary account holder who can choose to continue the account or close it.

5. Jointly

In this type, the account can be opened and operated by more than two people. All the account holder operate this account together. In other words, if a transaction has to be performed, all the account holders need to be present. No one can operate the account individually without the consent of others. This type of account is especially beneficial for business partners. This reduces the risk of funds being stolen or misused.

If one of the account holders dies, the account becomes completely inactive and cannot be operated further. Any funds leftover in the account shall be distributed among the survivors.

6. Jointly Or Survivor

This account is just like the Jointly account. All the account holders operate the account together and share the burden. But, if one of the account holders dies, the account does not become inactive. The survivor/s can choose to continue the account.

7. Minor Account

If the primary account holder is less than 18 years of age, then, a parent or a guardian has to step in as the secondary account holder. More than being an account type, this is a requirement as per law. The parent or the guardian should hold a joint account with the minor until he/she reaches the age of 18 years.

Also Read: How to Open a Bank Account for a Minor in India

So, these are various types of joint banks accounts in India, make sure to choose wisely which one to opt for. 

Things to keep in mind while Opening a Joint Bank Account

Here are a few things you should remember while opening a joint bank account.

• Always open a joint account with someone whom you completely trust. Preferably a family member.
• If you have to open an account with an outsider or a business partner, clear all the conditions beforehand and in writing if possible.
• The interest in such accounts will usually be considered as the income of the primary account holder. If you are the primary account holder, you will be liable to pay tax on that income.
• After the death of one of the account holders, the rights of the account are easily transferable; there is no need for succession certificates.
• If you open an account with someone who is not from your family, both of you should submit separate address proofs.
• Debit cards can be issued separately to all account holders. However, the cheque book is issued together.
• You can always request the bank to add new account holders and delete existing account holders in case of misuse of funds. The primary account holders can also place certain banking restrictions on the other account holders.

Opening a joint bank account in India has its fair share of advantages and disadvantages. It is very important to be sure about what you want from a joint bank account and how you want it to function. Knowledge of the different types of joint accounts and their functions can help you make the right decision for yourself and eliminate any chances of fraud.

The post Types of Joint Accounts Available in Banks in India appeared first on Moneymint.

Parenting is a tough task. In addition to all the little joys and happiness, it comes with a truckload of responsibilities. Most parents try their best to inculcate good values, ethics and morals into their children from a very young age, but, financial discipline is often overlooked. Teaching your children financial discipline and good financial habits is also crucial for their growth and future success.

The first step to financial discipline for a child or an adult is to open a savings account where money can be deposited regularly. Opening a savings account for your child will help them understand how money works and how it grows. These days we have several renowned banks offering savings account services to minors making it all the easier for parents to open an account for their children. For instance, ICICI Bank has its Young Stars Account, State Bank of India has PehlaKadam and PehliUdaan, HDFC Bank has Kids Advantage Account, and Union Bank of India has its Youth Banking Accounts.

How to Open a Bank Account for a Minor in India

In this article, we have given a detailed procedure for opening a bank account for a minor in India.

Things to Clarify Before Opening an Account for Minor

Bank accounts for minors are usually restrictive in nature. Not all features of a normal account can be availed. If you have decided against opening an account for a minor, here are a few things you might want to clarify with your bank before taking the plunge.

1. Age

Banks usually have two separate versions of savings accounts for minors. One is for children below 10 years of age and one is for children belonging to the age group of 10-18 years. If your child is below 10, the savings account has to be operated jointly by the parent/guardian. If your child is above 10 years of age, the account can be operated directly by the child.

2. Minimum Required Balance

Banks will usually require a minimum balance to open these accounts. This can be anywhere between Rs.2500 and Rs.10,000. Before opening an account, make sure that this amount is comfortable for you to maintain to avoid any complications later on.

3. Spending Limits

It is better to clarify with your bank the monthly and yearly spending limits for the account. It is different for different banks. Some banks have a daily withdrawal limit of Rs.1000 while for some other banks it is Rs.5000. Some banks also impose a cap on total debits in a year for minor accounts. It is better to clarify these things beforehand.

Apart from this, also clarify whether a debit card and cheque book would be provided for the minor account and if yes, who can operate it.

4. Funds Transfer

Clarify whether inter-bank funds transfers are allowed on the minor account. Also, make sure that the bank provides a ‘standing instructions’ facility to transfer funds from parent account to child account.

5. Communications from Bank

Make sure that the bank effectively communicates with you all the transactions done using the minor account. Activate SMS alerts and also request the bank to send you e-statements monthly via email.

Also Read: 9 Reasons Why Your Cheque Bounced Or Dishonoured

Documents Required

Here is a list of documents you will require before you can open a bank account for a minor in India:

1. Identity Proof: Identity proofs of both the minor and the parent are required. Aadhaar Card, Passport or Driving license can be produced as Id proof.

2. Latest Photographs: Latest photographs of the minor are required. Some banks will also require photographs of parents.

3. Address Proof: Proof of the communication address should be produced. Electricity bills, gas bills or Aadhaar card can be produced as Address Proof.

4. Relationship Document: A document proving the relationship between the parent and the minor should be produced. Passport, Ration Card or Life Insurance policies can be produced for this purpose.

5. Date of Birth Proof: The minor’s date of birth proof has to be produced. Birth certificate or Aadhaar card can be used for this purpose.

Procedure for Opening Savings Account for a Minor

Let’s see how you can open a bank account for a minor in India: 

1. Most banks require parents to have a savings account with the bank they intend to open their child’s account with. If you do not have one, you will have to open your savings account first.

2. Fill out a form given by the bank with the child as the primary account holder and you as the joint account holder. Attach all the required photographs with this form.

3. Submit all the identity proofs required by the bank. You might need to submit PAN card details as well.

4. Make sure that all the signatures are properly done. Cross-check your application for any spelling mistakes and submit it to the bank.

5. Once the bank receives your application, the information is verified, and the account is created.

6. Once the account is created, the bank will handover all the documents about your bank account. You might also be given a cheque book and a passbook.

7. This is how you can open an account for a minor in India.

Recommended: 10 Best Current Bank Account For Small Business In India

Once the minor account is created and is functional, you can perform all the transactions the bank allows you to perform. This account will be functional until the child turns 18. Once the child completes 18 years of age, the account will automatically cease to function, and you will have to convert it into a normal savings account if you wish to withdraw any cash.

The post How to Open a Bank Account for a Minor in India appeared first on Moneymint.

For checking the balance of your bank account, you had to either call the bank or visit them. But now by just giving a missed call, you can get to know your bank balance, it has become one of the simplest and fastest ways of checking your bank balance. 

Even if you do not own a smartphone or do not have access to an internet connection, still you can obtain this data. Now, all the banks have prefaced this missed call banking facility so that all their customers can get this information by just giving a missed call from their registered mobile number. 

About Missed Call Facility

You can get a lot of information apart from bank balance such as you can make a cheque book request, get a mini statement, and much more. You would not need an ATM or internet connection for using it. All you need to do is get your number registered with your bank so that you can avail SMS Banking Service with them. 

Once the number is registered, you just require giving them a missed call from it, and your call would get disconnected automatically after two rings. Once the call disconnects after a couple of seconds, you would get the bank details through an SMS. 

How to register for missed call banking?

For actuating the missed call banking, it is a mandate for your number to be linked with your bank account. For linking the number, you would have to go online or visit your home branch. It is a one-time process, and after that, you would get all your bank details on your phone without any trouble.

All Bank Balance Enquiry Number List (Toll-Free)

Here is a detailed overview of all bank balance enquiry lists; using these numbers would help you fetch a lot of information about your bank account. 

1. Axis Bank Missed call balance enquiry number

There new number for getting a bank balance is 18004195959 through SMS. For getting a mini statement via SMS, you need to dial 18004196969.

If you want to get the details in Hindi, then you would have to dial different numbers. For bank balance call 18004195858 and for a mini statement in Hindi call 18004196868. 

2. Andhra Bank Missed call balance enquiry number

For getting bank balance and mini statement you need to call 09223011300 from your registered mobile number. After two rings, the call will get disconnected, and you will get your balance enquiry through an SMS. This missed call number is toll-free, and you can dial it from anywhere in the country. 

3. Bandhan Bank Missed call balance enquiry number

The missed call balance checking number for Bank of Baroda is 18002588181 and for mini statement 9223008777. The headquarters of this bank is in Kolkata, and Bandhan Financial Services Limited owns this bank. 

You would have to first get your number registered to avail missed call services. Once the number is registered, just give a missed call, and you would get all the details on your phone via SMS.

4. Allahabad Bank Missed call balance enquiry number

It is a national bank with its headquarter in Kolkata, West Bengal. The number for missed call balance enquiry associated with Allahabad bank is 09224150150. This is a free number and is valid throughout the country.

It has the same process as others of giving a missed after that you get an SMS on your registered mobile number. If your number is not registered, then you would have to visit your Allahabad Bank branch. 

There is another way to register your number; you would have to type a message “REG account number” (REG 152856974623) and send it to 9223150150.  

5. Bank of Baroda Missed call balance enquiry number

It is a very well-known bank in India and is run by the Government of India. The account holders can quickly check their bank balance by just giving a missed call on 09223011311/8468001111 from their registered mobile number. It is a toll-free number that can be used from anywhere in the country.

Also Read: Types of Joint Accounts Available in Banks in India

After two rings, the call will get disconnected, and you will receive an SMS regarding your bank balance. You can avail of this facility only five times in a day not more than that. 

6. Bank of India Missed call balance enquiry number

You might see their old number 02233598548 mentioned on various websites, but they have recently changed their number, so note that you need to dial 09015135135 for getting your bank balance. You will receive an SMS automatically.

7. Canara Bank Missed call balance enquiry number

Their balance enquiry number is 09015483483, and if you want to see your mini statement as well, then you can give a missed call on 09015734734 for English and 09015613613 for Hindi. If you have any home loan query then you can dial 090154637637 and for car loan query 090154642642.

8. The Central Bank of India Missed call balance enquiry number

This bank is also called CBI. They have two numbers for checking balance 09222250000 and 9555244442, when you call them after one ring it will automatically disconnect, and you will receive a message with all the information. 

You can call 9555144441 for getting a mini statement of your account. These are toll-free numbers, and you can call them from anywhere in the country.

9. Dena Bank Missed call balance enquiry number

It is a mandate to have your number registered before you can avail of their missed call balance enquiry facility. You can do this easily by visiting your home branch. If your number is already registered, then you can give a missed call to 09289356677 for a balance enquiry.

Also Read: How to Open a Bank Account for a Minor in India

For getting your mini statement, you need to give a missed call on 09278656677. There missed calls service has made banking more straightforward and convenient for its customers. Now, this bank has become a part of the Bank of Baroda.

10. Dhanlaxmi Bank Missed call balance enquiry number

You can check your bank balance by giving a missed call on 08067747700 from your registered mobile number. For getting the e-statement for the last three months, you need to dial 08067747711. 

If you want an e-statement of just one day, then you can dial 08067747733, and if you wish to speak to any customer care executive, then you can call on 08067747722. 

11. Development Credit Bank Missed call balance enquiry number

You can get your bank balance information by giving a missed call on 7506660011, and you will get a message on your phone instantly. There is one more way to know your bank balance, just write BAL and send it to 9821878789.

12. Federal Bank Missed call balance enquiry number

Their missed call balance check number is 8431900900. You just need to dial this number from your registered number, and you will receive the SMS within seconds. Along with bank balance if you want to receive a mini statement, then you need to dial 8431600600. This feature has made banking easy and quick.  

If your number is not registered, then you need not visit the bank instead you can do this by simply sending a message- ACTBAL14digit account number to 9895088888 from the number you want to register. In case, if you wish to deactivate this facility, then you need to send an SMS to the number 9899508888 DEACTBAL14digit account number.

13. HDFC Bank Missed call balance enquiry number

It is a well-known private bank. Their balance checking number is 18002703333. This method would work only if you give a missed call from the registered mobile number.

Also Read: HDFC Bank Infinia Credit Card Review

Along with the balance check missed call facility; there are other numbers as well from which you can get more information-

• Dial 1800-270-3355 for the mini statement
• Dial 1800-270-3366 to request cheque status enquiry
• Dial 1800-270-3377 for account statement
• Dial 1800-270-3344 for mobile banking

14. ICICI Bank Missed call balance enquiry number

This is a very famous private bank and comes under the top 5 best banks in India. You can check your balance free of cost by just giving a missed call on 02230256767. You will instantly receive an SMS on your registered number with all the information. 

If you want to get a mini statement of the last three transactions, then you can give a missed call on 9594613613. Both savings and current account holders can use these numbers.

15. IDBI Bank Balance Missed call balance enquiry number

This bank is famous for the quick processing of tasks and fantastic customer care services. If you want to check your bank balance, then you can give a missed call on 18004831122 from your registered mobile number. For getting the mini statement, you need to dial 18008431133. 

When you open the account with them, this facility is pre-activated for the account holders with only one operative account. If you have multiple accounts and want to do the registration, then you need to register it by sending a message “REG<space>accountnumber” and send it to 5676777 or 9821043718 or 9820346920.

16. Indian Overseas Bank Missed call balance enquiry number

Their balance enquiry number is 04442220004, you just need to give a missed call on this number from your registered number and you will get all the information. You can also get your balance information by sending SMS, Type BAL<Your name> and send it to 9551099007. 

If your number is not registered with the bank, you can do it by sending SMS, ACT (space) (your account number) to +919551099007. After this, you will be able to avail of the missed call facility.  

17. IndusInd Bank Missed call balance enquiry number

It is a well-known private bank which offers fantastic services to its customers such as internet banking, mobile, and phone banking. For getting the information on your bank account, you can dial 18002741000, and you will get the information on your bank balance through SMS.

Also Read: 10 Best Savings Bank Accounts For Children In India

You can also get the information by sending a message, just type BAL and send it to 9212299955 from your registered mobile number and you will receive a text regarding your bank balance. If you want to apply for a loan through them, then you can dial 18005323344.

18. Kotak Mahindra Bank Missed call balance enquiry number

It is a popular private sector banking institute, and its bank balance check number is 18002740110. The same missed call process has to be followed, and you will receive the message on your registered number within seconds.

This is a toll-free number and is valid throughout India. It also works for both current and savings account users, but they do not provide mini statement through SMS service. 

19. Karur Vysya Bank Missed call balance enquiry number

They also provide a free missed call balance enquiry service for their customers. For availing of this service, you will have to register your number with the bank; for doing this, you will have to visit the branch.

Once your number is registered, you can give a missed call on 09266292666 and get the bank balance information via SMS. If you wish to know the information of the last three transactions, then you need to call 09266292665. 

20. Karnataka Bank Limited Missed call balance enquiry number

You can give a missed call on 18004251445 from your registered mobile number to get information about your bank balance. If you also wish to get a mini statement through SMS, then you can give a missed call on 18004251446. 

21. Kerala Gramin Bank Missed call balance enquiry number

It is a regional rural bank, and it is also called KGB. Its headquarters are in Malappuram; moreover, this bank is owned by both Central and State governments and is sponsored by Canara Bank.

If you wish to know your account balance, then you can give a missed call on 9015800400, and you will get the information on your registered number. 

22. Lakshmi Vilas Bank Limited Bank Missed call balance enquiry number

A lot of people also call this bank as LVB. You can dial 8882441155 for checking your bank account balance. When you dial this number after two rings, the call will be disconnected, and you will receive a message on your number shortly regarding your account balance information.

You can also get this information by simply sending a text, LVB <space> BAL <space> <customer number> and send it to 09282441155. 

23. Nainital Bank Limited Missed call balance enquiry number

As of now, they do not have missed call service available. But, if you want to check your account balance, then you can do it through their text message service. You need to type NTBL <space> Bal <space> <NB account number> and send this message to 56363.

Also Read: 10 Best Current Bank Account For Small Business In India

If you want to get your mini statement, then also you can use their SMS services, type- NTBL<space>TRN<space><last 13 digits of your account number> and send it to 56363.

24. Oriental Bank of Commerce Missed call balance enquiry number

It is a public sector bank and has its headquarter in Gurugram. Account-holders of oriental bank of commerce can use this number to check their bank balance- 08067205757. This is a toll-free number, and you can use it from any part of the country.

You can also check your balance through their SMS service, just type, “ACBALyour account number” and send it to 09915622622. For getting mini-statement – “STMaccountnumber” send it to 09915622622.

Remember that your number should be registered with the bank; otherwise, this service wouldn’t work for you. You can get the number linked by visiting the nearest branch. This bank recently got merged with Punjab National Bank on 1st April 2020. 

25. Punjab National Bank Missed call balance enquiry number

It is a renowned Government bank. The balance enquiry number for Punjab National Bank is 18001802222 or 01202490000. Just give a missed call on this number, and you will get the SMS with the details immediately on your registered mobile number. These two numbers are toll-free and valid all over India. 

26. Punjab & Sind Bank Missed call balance enquiry number

Their toll-free number for getting information on your bank account balance is 1800221908. If you wish to avail, this service ensures that your number is registered with the bank. They have one more number, i.e. 02227811200 but it is chargeable. 

Account-holders can also get information about their last five transactions, mini statement, and cheque status from the numbers mentioned above.  

27. South Indian Bank Limited Missed call balance enquiry number

Account-holders who have registered their mobile number with the bank account can avail of this service. If your number is not registered, then you will have to visit the home branch for getting it done. 

Also Read: Savings Account vs Current Account

You need to give a missed call on 09223008488 for getting information about your account balance. The call will get disconnected automatically after a few rings, and within seconds you will receive the bank account balance via SMS. If you are facing any issue and want to dial their customer service number, then you can call on 18004251809. 

28. Saraswat Bank Missed call balance enquiry number

It is a co-operative bank which is operating in six states of India. Although it is a co-operative bank yet, it has a vast and impressive customer base. Just like other banks, they also offer missed call balance check service for their customers.

If your number is linked with your bank account, then you just need to give a missed call on 9223040000, and you will get the balance information. If you want to get information about the last three transactions, then you need to give a missed call on 9223501111, and you will receive a message within seconds. 

They also offer missed call service for temporary blocking and unblocking of the card-

Temporary blocking of Card: Missed call on 9595637637

Unblocking of Card: Missed call on 9595638638

29. State Bank of India Missed call balance enquiry number

It is one of the biggest banking institutions in India. They have two customer service numbers 1800112211 and 18004253800. For knowing the balance of your account, it is a mandate that your mobile number should be linked with your bank account. 

If it is not registered, then you can do that by merely sending a text, REG<space>your account number, and send it to 09223488888 from the number you want to register. You will get a confirmation message about the registration of the account.

Once the account gets registered, you can know your bank balance by giving a missed call on 09223766666 and for a mini-statement give a missed call on 09223866666. 

30. Tamilnad Mercantile Bank Limited Missed call balance enquiry number

This bank is also referred to as TMB by a lot of people. Its headquarter is located in Tuticorin, Tamil Nadu. If your number is linked with your bank account, then you can give a missed call on 09211937373, and you will get the bank balance information on your phone through a message. 

31. UCO Bank Missed call balance enquiry number

Their account balance enquiry number is 09278792787. This is a toll-free number, and you can use it from any part of the country. Apart from the balance enquiry service, you can also get to know a lot more information within seconds.

Also Read: What Is A Bank Rate In India? Bank Rate Vs. Repo Rate

You can dial 09213125125 to receive a mini statement, 09210222122 to learn about UCO home loan, and dial 09210422122 to get more information about UCO car loan. 

32. Union Bank of India Missed call balance enquiry number

It is a very famous bank known for its excellent services and transparent policies. They have a good customer base, and for making the experience of their customers better, they have launched many digital initiatives such as SMS banking, missed call balance enquiry, internet banking, and much more. All these steps make banking easy and convenient for customers.

If you want to know your account balance, then you can give a missed call on 09223008586 from your registered mobile number. You can get this information by their message service as well, just type, UBAL and send it to 09223008486. For mini-statement, you need to send, UMNS to 0922008486.

33. United Bank of India Missed call balance enquiry number

It was a Government-owned bank, and its headquarter is in Kolkata, West Bengal. United Bank of India offers various ways to their customers for checking balance such as through missed call service, app, SMS, or USSD.

The account holders can dial 0901541345 or 09223008586 from their registered mobile number. Account-holders of UBI can also dial *99*63# or *99#, and they will get options like the mini statement, balance enquiry, etc.

They also offer SMS service for their customers; you just need to type, “BAL<space>YourMPIN” and send it to 9223173933 for knowing your account balance. For knowing your mini statement, you need to type, “MINI <space> Your MPIN”, and you will get the mini statement.

34. Yes Bank Limited Missed call balance enquiry number

It is a mandate for Yes bank customers to register their number with the bank account for availing this service. The good thing is that you can get the registration done by just sending a text- “YESREG<cust ID> from the number you want to register to +919840909000. Once the account gets registered after that, you can avail of their missed call facility.

For checking the number through the missed call, you need to dial 09223920000, and you will get the account balance instantly. For getting the last 5 transactions of your account, you need to give a missed call on 09223921111. If you want to change your primary account number for Missed call banking, you can send a text, YESDEF to +919840909000. 

35. Corporation Bank Missed call balance enquiry number

This bank has made the missed call facility even better by giving the option of both languages Hindi and English. The first thing is that your number should be registered with the bank. If yes, then you can dial 09289792897 (for Hindi) and 09268892688 (for English).

Also Read: What Are The Different Types Of Banking Transactions?

One unique service about this bank is that they have missed call service for customers staying abroad as well. Account-holders abroad can give a missed call on 919289792897 for getting the balance in Hindi and 919268892688 for English. Remember that you can facility is limited to 3 times a day. 

36. CSB Bank Limited Missed call balance enquiry number

CSB stands for Catholic Syrian Bank, and its headquarter is in Thrissur, Kerala. For getting the information of your account balance, you need to give a missed call on 09895923000 from your registered mobile number. If you want to get your mini statement as well, then you can send a text- TRAN to 09895923000. 

37. RBL Bank Missed call balance enquiry number

You might not be aware that RBL is the oldest private sector back in India. Its headquarter are in Kolhapur. This bank is well-known for its disparate banking and financial services that it offers to its customers. With time, they have updated their systems and have become technologically advanced too.

They also have the missed call facility for knowing the bank balance. You just need to dial 18004190610, the call will get disconnected automatically after two rings, and you will get the information through text within seconds. 

It is a toll-free number and applicable all over India. Account-holders can avail of this facility 5 times a day, but this facility is available 24*7. The best part is that all the account holders such as savings, current, and overdraft can get the balance information from the number mentioned above. 

38. Bank of Maharashtra Missed call balance enquiry number

They also provide phone banking services to their customers. With the help of phone banking, they can get a lot of information in just seconds such as balance information, mini statement, getting in touch with customer care executives, and much more. You just need to give a missed call on 9222281818 from your registered mobile number.

39. City Union Bank Missed call balance enquiry number

Their missed call balance enquiry number is 9278177444. Just give a missed call from your registered number, and you will get the balance information instantly on your phone through an SMS. 

40. India Post Payment Bank Missed call balance enquiry number

People also call this bank as IPPB. If account holders wish to check their bank balance, then they can give a missed call on 8424026886 from your registered mobile number. The call will get disconnected after two rings, and you will get a text on your phone regarding the information immediately. 

41. AU Small Finance Bank Missed call balance enquiry number

This bank has become very famous for a couple of years. They have always used advanced technology for improving the banking infrastructure and system. The bank also offers missed call banking service so that it becomes easier for the customers to know their account balance.

Also Read: Top 10 Non-Banking Financial Companies (NBFCs) in India

For knowing your account balance, you can give a missed call on 18001202586 from your registered mobile number. If your number is not registered, then you need to visit your home branch for getting it linked with your bank account. 

42. Ujjivan Small Finance Bank Missed call balance enquiry number

It is a mass market-focused bank in India. They also offer missed call facility for their customers so that they can get all the information quickly on their phone. For getting bank balance information and mini statement, you need to give a missed call on 9243012121 from your registered mobile number.

43. Odisha Gramya Bank Missed call balance enquiry number

It is a well-known bank and has received various awards for the great services it has provided to its customers. You can avail of their missed call balance enquiry service only if your number is linked to your account. You can give a missed call on 8448290045 for obtaining your bank balance information.

44. Baroda Gujarat Gramin Bank Missed call balance enquiry number

This bank is in Gujarat and is renowned for using technology for a better customer experience. BGGB also offers missed call service, you just need to dial 7829977711, and after two rings the call will get disconnected automatically. Within seconds, you will receive a text message about your balance information.

45. Karnataka Vikas Grameena Bank Missed call balance enquiry number

Their missed call number for checking the account balance is 9015800700. This number is toll-free and valid throughout the country. Your account should be linked with the account number only then you will be able to avail of this service. 

46. IDFC First Bank Missed call balance enquiry number

This bank has been opened just a couple of years back and has got an impressive response as it has made a good customer base. Their missed call service number is 18002700720, by giving a missed call on this number you will get to know your account balance and mini statement both. 

47. Deutsche Bank Missed call balance enquiry number

Deutsche Bank India offers quality banking products and services to its customers. They also have missed call banking facility for its account holders. You can dial 18602666601 from your registered mobile number, and you will get a mini statement and bank balance on your number.

Complete List

Recommended: How to write a Cheque in India? (The Right Way)

These are all the renowned banks of India and all bank balance enquiry number list. You can call them from anywhere in the country, all of them are toll-free. All you need to take care of is that your number should be linked with the bank account for availing of this service. You can do that by visiting the home branch or the nearest ATM. So, make banking simple and convenient by availing of this service.  

The post All Bank Balance Enquiry Number List (Toll-Free) appeared first on Moneymint.

In the modern era, banks play a significant role in accumulating public savings and making them available for investment. They also boost the mobility of capital and create demand deposits in granting loans and buying investment securities.

Thus, we can conclude the overall effects were positive since the emergence of the banking system in India and led to a win-win game for all businesses and investors.

History of Banking System in India

One should know the history of the banking system in India. Thus, we have gathered some important points about the history of the banking system in India.

Did you know the first bank of India, ‘Bank of Hindustan,’ was established in 1770? Yes, you heard it right! In 1770. The bank was located in Calcutta, which later ceased its operations in 1832.

During that era, more than 500 banks registered themselves and trying to flourish, but only a few of them managed to survive, including the Bank of Bengal (1809), Bank of Bombay (1840), and Bank of Madras (1843).

Note: Bank of Calcutta (The oldest commercial bank in India) was established in 1806. After 3 years, the bank was issued a royal character and changed its name to the Bank of Bengal.

When the British Empire was ruling India, the 3 banks mentioned above were established. All these banks were merged to form the Imperial Bank of India in 1921. In 1955, after India’s independence, the name of Imperial bank was changed to the State Bank of India (SBI), which is carrying out operations even today.

In addition, SBI is the largest public sector bank in India and is serving numerous customers through its impeccable services.

Also Read: All Bank Balance Enquiry Number List (Toll-Free)

List of Pre-Independence Banks in India (1786-1947)

The subsidiaries of the State bank of India were nationalized in the year 1959, including:

• State Bank of Mysore
• State Bank of Bikaner & Jaipur
• State Bank of Indore
• State Bank of Patiala
• State Bank of Travancore
• State Bank of Saurashtra
• State Bank of Hyderabad

Besides, the list of the other 14 Banks nationalized in 1969 includes:

• Punjab National Bank
• Indian Overseas Bank
• Canara Bank
• Bank of Baroda
• Central Bank of India
• Bank of India
• Dena Bank
• Allahabad Bank
• Indian Bank
• Bank of Maharashtra
• Syndicate Bank
• Union Bank of India
• United Bank
• UCO Bank

11 years later, In 1980, another 6 banks were added to the list of the nationalized banks, including:

• Vijaya Bank
• Punjab & Sind Bank
• New Bank of India
• Oriental Bank of Comm.
• Corporation Bank
• Andhra Bank

Note: All the subsidiaries of the SBI were merged with the State Bank of India in 2017.

The liberalization took place by the government in the 1990s that led to the emergence of many private banks, including ICICI, HDFC, IndusInd Bank, and UTI Bank.

Also Read: What Are The Different Types Of Banking Transactions?

Banking System in India

Banks are the financial institutions having the primary purpose of lending money to individuals/solopreneurs/businesses, receiving deposits, disburse payments, safeguarding money, and investing in stocks/bonds.

They offer various services to assist individuals in managing their finance, such as savings/current/Demat account, debit & credit cards, loans, certificate of deposit, wealth management services, safe deposit boxes, and investment-related services.

Banks are a crucial element holding utmost importance in the modern economy. They are the crucial financial institution every economy needs to survive. Here is the list of financial regulators in India on which the Indian economy is dependent immensely:

1. RBI

The father of all banks, ‘RBI‘ is the central banking institution of our country. All banks regulate and operate as per the guidelines issued by the Reserve Bank of India.

In a nutshell, it can be concluded banking system in India is incomplete without the RBI.

2. Securities Exchange Board of India (SEBI)

SEBI is a statutory body solely responsible for regulating the securities and Indian capital markets under the jurisdiction of the Ministry of Finance. Primarily, SEBI protects the interest of investors by enforcing particular rules and regulations.

This financial regulatory body is very powerful. It monitors & regulates the securities market and helps the issuer of securities act as the protector of investors, traders, & financial mediators.

3. Insurance Regulatory and Development Authority (IRDA)

IRDA is another regulatory body whose primary objective is to protect the interests of the insured person. It is solely responsible for monitoring insurance-related activities and ensure the development of the insurance industry.

It works under the jurisdiction of the Ministry of Finance and promotes the insurance industries in India.

With the increase in the number of banks, now the banks and the banking system in India are divided into different groups. Each group has its own dedicated market along with advantages and drawbacks.

Also Read: What Is A Bank Rate In India? Bank Rate Vs. Repo Rate

What are the Types of Banks in India?

The Indian Banking System Structure is divided into the following categories:

1. Scheduled Banks

Scheduled banks; whose paid-up capital is more than Rs 5 lakhs. These banks do not harm the interest of the depositors. Some of the scheduled banks in India are Bank of India, Bank of Baroda, Allahabad Bank, Andhra Bank, Indian Bank, Dena Bank, Canara Bank, and Bank of Maharashtra.

2. Non-Scheduled Banks

Non-Scheduled banks do not comply with the guidelines specified by the RBI (Reserve Bank of India). These banks are opposite of Scheduled Banks, which implies the paid-up capital of non-scheduled banks is less than Rs. 5 lakhs. This category of banking system follows CRR conditions.

3. Central Bank

The Central bank of India is responsible for regulating and guiding other banks in the country. It is a chief bank known as the ‘banker’s bank’ or the ‘government’s bank.’

In India, the RBI is the central bank whose primary function is to emanate our country’s currency and execute financial strategies, approaches, and determining policies. Simultaneously, all the activities related to foreign exchange are looked over by the central bank.

4. Cooperative Banks

Cooperative banks carry out all the activities under the guidelines of the state government. These banks’ primary objective is to ensure public welfare and social well-being, which is achieved by offering loans to people.

Furthermore, cooperative banks are classified under 3 categories:

1. State-Level Cooperative Banks
2. District-Level Cooperative Banks
3. The Rural or Village Level Cooperative Banks/ Agriculture Credit Societies

Also Read: Top 10 Non-Banking Financial Companies (NBFCs) in India

5. Commercial Banks

a. Public Sector Banks: The share of public sector banks is owned by the government. At present, there are 12 public sector banks in India, including SBI, Indian Overseas Bank, Bank of Baroda, and many others.

b. Private Sector Banks: The majority of the share is held by the business houses or private stakeholders. Some of the private sector banks include ICICI Bank, HDFC Bank, Axis Bank, etc.

c. Foreign Banks: Foreign banks manage their operations headquartered overseas and carry out the functions under the regulation provided by the central government of India. One of the examples of foreign banks in India is Citi Bank.

6. Development Banks

These are specialized financial institutions that provide long-term and short-term loans to entrepreneurs at a low rate of interest as compared to other banks. Name a few of the development banks to include Industrial Financial Corporation of India, Industrial Development Bank of India, and India’s Industrial Credit and Investment Corporation.

7. Land Mortgage Banks

These banks are also known as the Land Development Banks. These banks were incorporated to provide long-term loans to the farmers at a low rate of interest. Land Mortgage Bank’s primary objective is to mortgage farmer’s land and provide them loans against it without the need for extensive paperwork.

8. Regional Rural Banks

Regional Rural Banks were established to ensure the welfare of the weaker section of the rural population. The primary purpose of these banks was to meet all the requirements of the unprivileged people.

9. Exchange Banks

Exchange banks are primarily involved in the activities related to buying and selling of foreign exchange. The purpose of these banks is to boost international trade.

10. Exim Banks

Exim banks provide great support to the importers and exporters. These banks are also known as ‘Export-Import Bank’ granting long-term financial assistance to the exporters and importers.

Who introduced the banking system in India?

The history of the banking system in India is not hidden from anyone. By now, you would have got extensive information about the Indian banking system’s history. However, do you know how did the banking system in India start? Or who introduced it in our country?

The origin of the banking system can be effortlessly traced to when the bank of Calcutta was founded. While the British people were ruling the country, the Union Bank of Calcutta was established on 2^nd June 1806. After some years, with the foundation of the English Agency Houses in Calcutta and Bombay, the banking in India experienced a significant boost.

Allahabad Bank was the first bank to be owned by an Indian. The Allahabad bank was established in 1865. Then, in 1895, the Punjab National Bank was incorporated and started operating. Soon after that, a series of commercial banks were established between 1906-1913, such as Bank of Baroda, Bank of Mysore, Canara Bank, Central bank of India, Indian Bank, etc.

In 1935, the Imperial Bank of India was founded with the amalgamation of three presidency banks at that time (Bank of Bombay, Bank of Madras, and Bank of Bengal). After some years, the Imperial Bank’s name was changed to the State bank of India.

Even the pivotal regulatory banking body of our country, the Reserve Bank of India, was established in 1935 on the recommendation of the Hilton-Young Commission. However, during that phase, the requirements of the weaker section of society (rural and agriculture sector) were neither fulfilled nor given any consideration.

Also Read: How to Open a Bank Account for a Minor in India

What are the Indian banking system and its characteristics?

Indian Banking System can be classified as:

1. Organized Banking

Organized banking in India is under the central bank’s control, which is RBI, and other financial regulatory bodies named SEBI and IRDA.

Organized banking is further classified into 2 categories named Banking Institutions and Non-Banking institutions.

a) Some of the banking institutions include India Infrastructure Finance Company Ltd, Acuite Ratings and Research Limited, Industrial Finance Corporation of India, National Housing Bank, and Small Industries Development Bank of India.

b) Some of the non-banking institutions include Bajaj Finance Limited, Power Finance Corporation Limited, Muthoot Finance Limited, HDB Finance Services, Tata Capital Financial Services Ltd., and Mahindra & Mahindra Financial Services Ltd.

2. Unorganized banking

The central bank has no control over the unorganized banking sector. Some of the most important segments of unorganized banking include indigenous bankers, money lenders, landlords, lending pawnbrokers, and traders. Moreover, this banking system in India is characterized by a lack of uniformity in its business dealings.

What is Indigenous banking?

You might be thinking, who are indigenous bankers! Indigenous bakers are the individuals or private firms operating the same way as banks and are also known as financial intermediaries, which means they receive deposits and offer credit to the customers. This banking is functioning for hundreds of years and plays a vital role in the Indian economy.

Functions of Indigenous Bankers

• Advancing Loans
• Discounting Hundis
• Accepting deposits
• Financing Inland Trade
• Remittance facilities
• Commission Agents
• Speculative Activities
• Subscribe to Shares and Debentures
• Manage/Operate/Run firms

a) Time hundi, also known as Muddati; payable after the period mentioned on the face of hundi
b) Sight hundi, also known as Darshni; payable on demand

Significance of Indigenous Banking

They help expand financing international trade by providing seamless finance and remittance facilities to traders and small industrialists. This banking offers various facilities, including writing, buying, and selling hundis, writing finance bills, trade bills, and advancing loans.

Indigenous bankers provide robust support to the agriculture sector by facilitating the transportation of agricultural products from rural areas to metropolitans and city markets. Furthermore, they also help in the movement of industrial products to various parts of the country.

Also Read: Types of Joint Accounts Available in Banks in India

Flaws of Indigenous Banking

1. These bankers are involved in undesirable practices such as deducting interests in advance, manipulating accounts, or not providing proof or receipts of principal and interest.
2. Providing loans for unproductive purposes.
3. Charge an unreasonable high rate of interest.
4. The accounts maintained are neither audited nor published just because they follow old business practices based on the secrecy of all activities and accounts.
5. They do not prefer accepting deposits. Instead, they are more after offering loans. Due to the lack of balance, they are unable to mobilize savings.
6. They operate with insufficient capital, due to which sometimes they run out of funds and cannot meet the financial needs of borrowers.
7. They never collaborate or work in co-operation with cooperative or commercial banks which has emerged a rigid dichotomy in the financial market of our country.
8. They are categorized under the unorganized money market in India, because of which RBI has no control over them.

How to Remove These Flaws of Ingenuous Banking System

1. Listing minimum capital requirements should be made mandatory for every indigenous banker.
2. They should be only involved in banking businesses, not other unauthentic or illegitimate activities.
3. These bankers should be registered and work as per the guidelines of RBI. Moreover, a license should be issued to them before operating as one of the indigenous bankers.
4. They should be allowed to collect drafts, cheques, etc. This will bring more transparency to the entire system and reduce cash dealings.
5. These bankers should be linked with commercial banks. Plus, hundis should be discounted by commercial banks.
6. The indigenous banking system should be entitled to benefit from the Bankers’ Book Evidence Act.

Some important characteristics of the Indian Banking System Structure are listed below:

• Profit and service-oriented institution.
• Deals with money.
• It could be an Individual or firm or a company.
• Provides Credit/Loans to the customers.
• Acts as an intermediary between lenders and borrowers.
• Accepts public deposits and offers Fixed Deposit services.
• Provides Agency and Utility Services.
• Provides Payment and Withdrawal facilities.

Due to the initiatives taken by the Reserve Bank of India, the financial institutions and banking system in India have seen considerable growth.

Recommended: List of Private Banks in India

The banking system has the power to immensely influence our economy’s development. The country’s rural and backward regions are also dependent on the banks as it is a great source of providing capital for small or medium-scale businesses.

The post Banking System in India Explained appeared first on Moneymint.

Banks in India are regulated by the top Bank of India, i.e., the Reserve Bank of India. It is the most leading banking governing authority in India. In India, banks are categorized into distinct groups, and all of them have their own way of functioning, different target markets, benefits, and limitations.

A few banks operate in rural areas and are specifically engaged in serving small businesses, agriculture, small cottage industries, or self-help groups. On the other hand, commercial banks work in both rural and urban areas. Therefore, an effective banking system is vital for the good growth of the economy.

Types of Banks in India

Indian Banks are grouped into four major sections, which are:

1. Commercial Banks: These banks are further categorized into four categories-

• Private Sector Banks
• Public Sector Banks
• Regional rural banks
• Foreign banks

2. Small Finance Banks

3. Payments Banks

4. Co-operative Banks

What are private sector banks?

These are the banks in which the maximum stake of shares or equity is maintained and owned by private individuals. Initially, the Indian bank sector was dominated by the Public Sector banks, but after the 1990s, private sector banks came into existence and have grown immensely.

The reason for their quick growth was because they used the latest technology, used new monetary tools, and provided contemporary innovations.

In India, private sector banks are classified into two divisions

1. Old Private sector banks (these banks emerged before 1968)
2. New Private sector banks (these banks emerged after the 1990s)

Variation between Private and Public Sector banks

Here are some features that would illuminate the difference between private and public sector banks:

• The shares of public sector banks are owned by the government, whereas private shareholders hold the majority stake in private sector banks
• As a whole, there are 27 public sector banks and 21 private banks, along with four local area banks
• The total market share of public sector banks is 72.9%, whereas the share of private sector banks is 19.7%. Therefore, public sector banks are dominating the Indian Banking system
• Public sector banks have a significantly larger customer base than the private banks
• In public sector banks, there is a lot more transparency in terms of interest rate policies as compared to the private banks
• The interest rates on the deposits done in public sector banks are higher than private sector banks

List of Private Banks in India (2022)

Here is the list of top private banks in India:

1. HDFC Bank

It is said to be one of the biggest private banks in India in terms of complete assets and market capitalization. It is the first Bank that got ‘in-principle permission from RBI to establish a bank in the private sector as a division of RBI’s liberalization of the Indian Banking Industry in 1994.

In fact, their tagline itself is “We understand your world,” and they completely abide by it by offering great services. HDFC is one of the top-performing banks, and it comes under the listing of 100 most valuable brands across the world.

Also Read: HDFC Bank Infinia Credit Card Review

They give a big variety of financial products and services that includes wholesale & retail banking,  all type of loans, treasury, and credit cards to its customers. Their banking network is also huge; globally, they have more than 5430 branches and 15292 ATMs.

• Revenue: Rs 105,161 Cr
• NIM: 4.3%
• Gross NPA: 1.36%
• CASA: 48%
• ATMs: 15292
• Branches: 5,430
• Customer Base: Over 49 Million
• Employees: 98,061

2. ICICI Bank

It is the second-largest private sector bank in India as its total consolidated assets were Rs.14.76 trillion in 2020. ICICI has a large network of branches nationwide; they have 5288 branches and 15158 ATMs across the country.

ICICI bank started in 1994, and its registered office is in Vadodara, Gujarat. They render an extensive range of financial products and services, including Fixed Deposits, loans, insurance,  savings & current accounts, privileged banking, and Credit Cards.

They generate employment for more than 85000 people in the country. ICICI bank offers services to the customers via several delivery channels and its group companies.

• Revenue: Rs 84,353 Cr
• NIM: 3.61%
• Gross NPA: 6.7%
• CASA: 45.2%
• ATMs: 15158
• Branches: 5288

3. Axis Bank Ltd

It is the third-largest private sector bank in India. The list of private banks in India 2022 would be incomplete without including the name of Axis bank. After ICICI and HDFC bank, Axis has the maximum number of ATMs across the country. They have more than 12000 ATMs, 4533 cash recyclers, and 4528 branches in the country.

They offer numerous financial services, but some of the significant ones are home loans, corporate banking, mortgage loans, retail banking, MSME, wealth management, etc. Axis bank is also said to be the first new-generation private sector bank in India.

Axis Bank was incorporated in 1994, and its headquarter is in Mumbai. This Bank has international offices in 11 countries: Singapore, Dubai, Shanghai, Hong Kong, Colombo, and Gift City-IBU. It has its representative offices in Dubai, Abu Dhabi, Sharjah, Dhaka, and an overseas subsidiary in London, UK.

The international offices usually focus more on other services that they offer in India, such as corporate lending, syndication, trade finance, investment banking, and liability businesses.

• Revenue: Rs 56,044 Cr
• Gross NPA: 5.25%
• NIM: 3.56%
• CASA: 43.2%
• ATMs: 12000
• Branches: 4,528

4. Kotak Mahindra Bank Ltd

It has become one of the most popular banks in India after it acquired ING Vysya Bank in 2015. It started in 1985 as Kotak Mahindra Finance Ltd, but later it changed to Bank in 2003, and since then it has gained a lot of popularity in private sector banks by offering amazing products.

They got the license from RBI and became the first non-banking finance company in India to convert into a bank. They have majorly four units: Consumer Banking, Corporate Banking, Commercial Banking, and Treasury; this serves to retail and corporate sectors in both rural and urban areas in the country.

Kotak Mahindra Bank has more than 1500 bank branches and 2352 ATMs that cover over 744 locations. They give diverse services such as personal finance, investment banking, wealth management, general insurance, life insurance, etc. Their headquarters is in Mumbai.

• Revenue: Rs 31,346 Cr
• NIM: 4.3%
• Gross NPA: 1.9%
• CASA: 52.5%
• ATMs: 2,352
• Branches: 1,500
• Customer Base: 17 million+

5. IndusInd Bank Ltd

This is one of the best private banks in India. They kept this name because they were inspired by the Indus Valley civilization, which is the greatest ancient culture in the world. Induslnd bank offers great services to its customers and ensures that all its clients are completely satisfied.

It is a new generation bank that was incorporated in 1994 and had a widespread banking footprint. They offer a wide range of services that includes Loans, Deposits, Accounts, microfinance, Insurance, Investments, etc.

Also Read: All Bank Balance Enquiry Number List (Toll-Free)

It is headquartered in Pune and has a huge network of more than 5000 distribution pints and over 2000 bank branches, and 2606 ATMs. Within the last couple of years, it has grown seamlessly and dynamically because they strive hard to provide banking services at par with their customers.

IndusInd Bank has offices in international places as well, which are Dubai, Abu Dhabi, and London. They have more than 8 crores customers and generate employment of more than 25,000 people.

• Revenue: Rs 24,154 Cr
• NIM: 4.05%
• Gross NPA: 2.15%
• CASA: 43.1%
• ATMs: 2,605
• Branches: 2000
• Customer Base: 9 million+

6. Yes Bank

It is one of the fastest-growing banks in India as it is doing an amazing job when it comes to serving its customers. It started in 2004, and since then, they are working hard on the mission of becoming the finest quality largest bank in India. Now, they have become a “Full-Service Commercial Bank” that even other banks look up to it.

The good part about this Bank is that they are a very customer-centric and service-driven Bank, and these two qualities would help them become one of the largest banks in India very soon.

Yes, Bank offers a wide range of products and services such as investment banking, corporate finance, branch banking, etc., to retail customers, MSME, and corporate. They have a pan-India presence in 28 states & 9 union territories, plus a representative office in Abu Dhabi and an IBU and GIFT city too.

It is headquartered in Mumbai and generates employment of over 18,000 people across the country.

• Revenue: Rs 20,269 Cr
• Gross NPA: 5.01%
• CASA: 30.2%
• NIM: 2.8%
• ATMs: 1,450+
• Branches: 1,120

7. Federal Bank

They have an interesting tagline that absolutely goes with the services they offer, i.e., “A perfect banking partner.” They render their users one of the most efficient and convenient banking solutions. It is one of the first traditional banks in India that made all its branches computerized as soon as the concept of digitalization started.

They started their services in 1931 as Travancore Federal Banks and later changed to Federal Bank. It is one of the oldest private banks in India, and they are headquartered in Aluva, Kerela. They generate employment of more than 12000 people in the country.

Federal Bank aspires to become one of the most admired banks in India, and the way they are moving, it seems that this is going to happen very soon.

They offer a big range of services: depository services, personal banking, insurance services, internet banking, mobile banking, NRI banking, online bill payment & fee collection, mutual fund products, insurance schemes, etc.

• Revenue: Rs 11,635 Cr
• NIM: 3.15 %
• Gross NPA: 2.99%
• CASA: 31.44 %
• Market Share: 1.13 %
• ATMs: 1,606
• Branches: 1,251
• Customers: 9.7 Million

8. IDFC First Bank

When you make the list of private banks in India, the name of IDFC First Bank should be included without a miss. The reason why its customer base is increasing is because of its range of exquisite banking products.

Initially, IDFC was established in 1997for financing infrastructure, and their prime focus was on project finance and mobilization of Capital for the development of private-sector infrastructure. In 2005, they expanded the business, and later, in 2013, they applied for a bank license to the RBI.

They got permission in 2014, and recently in 2015, they opened  IDFC First Bank. Then in 2018, it merged with Capital First, which is a retail asset franchise.

They have been in the market for a very little time, yet they have a good customer base of 70 lakh people, and the best part is that 30 lakh people are from rural areas. IDFC First Bank’s headquarter is in Mumbai. They have a pan-India network of 260 branches and 140 ATMs.

They provide a plethora of financial services to retail customers, small businesses, and corporate.

• Revenue: Rs 9,098 Cr
• NIM: 3.15%
• Gross NPA: 2.66%
• CASA: 15.08%
• ATMs: 199
• Branches: 279
• Customer Base: 4 million live customers

9. South Indian Bank

It is again a very popular bank that is a must in the list of private banks in India 2022. The headquarter of this Bank is in Thrissur, Kerela, and the Bank was established back in 1929 during the Swadeshi movement. It is one of the oldest private banks and is the first Kerela-based Bank to implement Core Banking System.

Since the day it was established, and to date, they have maintained a good reputation because of the excellent services they deliver. The transparency with which they work is commendable. Their primary motive is to render people a reliable, efficient, and service-oriented financial institution to get loans at reasonable interest rates.

Because of their excellent services, they have an outstanding network of 876 branches, 53 extension counters, and 1334 ATMs across the country. You can see their ATMs and branches in 27 states and 3 union territories.

• Revenue: Rs 7,117 Cr
• NIM: 2.53%
• CASA: 24.1 %
• Gross NPA: 4.96 %
• ATMs: 1,400
• Branches: 870

10. Bandhan Bank

Bandhan Financial Holdings Limited (BFHL) is the main company, and Bandhan bank is its subsidiary. BFHL is a completely owned subsidiary of Bandhan Financial Services Limited (BFSL).

It came into existence in 2015, and it is headquartered in Kolkata. Their major focus is on serving an unbanked and under-banked population of the country. They respect all their customers equally, whether they are individuals, corporate or large companies.

Their banking solutions are fabulous, and they offer financial services in the form of asset & liability and products & services. Some of the primary services they offer to its customers are banking services, microfinance, MSME, and affordable housing finance to urban, semi-urban, and rural customers.

Also Read: Types of Joint Accounts Available in Banks in India

The private shareholders of BFSL are International Finance Corporation, IFC FIG Investment Company, Small Industries Development Bank of India (SIDBI), and Caladium Investment Pvt. Ltd.

• Revenue: Rs 7,208 Cr
• NIM: 10.45%
• Gross NPA: 2.04%
• CASA: 36.06%
• Customer Base: 17.27 million
• ATMs: 481
• Branches: 999

11. CSB Bank

It was formerly known as the Catholic Syrian Bank and is one of India’s oldest private sector banks as it was established in November 1920. Their headquarters are in Thrissur, Kerela. People in Maharashtra and Southern India prefer opening their accounts in CSB Bank because of the credibility and reputation they have maintained.

They have around 417 branches and more than 300 ATMs across 18 states and 2 union territories. CSB bank operates in four major areas: corporate banking, SME banking, retail banking, and treasury operations. They are currently working on expanding their services by doing investments in technology so that they can improve the customer experience.

They have more than 3200 people working under them to render efficient customer services. It became a scheduled bank in 1969, and in 1975, it entered the field of International Banking.

• Revenue: Rs 599.24 Cr
• NIM: 3.20%
• CASA: 29.04%
• ATMs: 310
• Branches: 417
• Gross NPA: 3.05%
• Customer Base: 1.5 million

12. City Union Bank

This is one of the top private banks in India that offers numerous services to its customers such as retail banking, enterprise banking, loans, MSME, NRI banking, gold loan and serves the need of the agriculture and education industry as well.

The Bank was established as a limited company in 1904 and was named Kumbakonam Bank Limited. It is headquartered in Kumbakonam, Tamil Nadu. They started expanding in 1930 when they opened their first branch in Mannargudi, and then after almost 50 years in 1980, they opened their branch outside Tamil Nadu in Sultanpet.

They have strived hard since then to maintain this position and have opened 700 branches and 1762 ATMs all over the country.

• Revenue: Rs 1209.95 Cr
• NIM: 4.12%
• CASA: 6.20%
• ATMs: 1762
• Branches: 700
• Gross NPA: 4.09%

13. DCB Bank

It is a new generation private bank and has deep roots in India since it was established in the 1930s. It is a scheduled commercial bank that is regulated by RBI. It has 347 branches across the 18 states and 2 union territories. They have contemporary technology and infrastructure, such as state-of-the-art banking for both personal and business banking customers.

The financial services that DCB bank offers to its customers are retail, micro-SME, SME, mid-corporate, government, public sector, Indian banks, co-operative banks, agriculture, commodities, and NBFC. This Bank is professionally managed and governed.

Their branches are spread all over the country, is in Andhra Pradesh, Bihar, Chhattisgarh, Daman, Delhi/ NCR, Goa, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Silvassa, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal.

They wish to become the most innovative and responsive Bank in India and treat everyone with dignity and so what is right.

• Revenue: Rs 96.21 Cr
• NIM: 3.67%
• CASA: 23.34%
• ATMs: 112
• Branches: 347
• Gross NPA: 2.15%
• Customer Base- 600000

14. Dhanlaxmi Bank

This is again an old bank that is a must to be included in top private banks in India. This Bank was established on 14^th November 1927, and since then, it has maintained its trust and goodwill with its clients. Enterprising entrepreneurs started this Bank at Thrissur with a capital of Rs.11 000.

Dhanlaxmi bank has been recognized as a scheduled bank by the RBI. In the year 2010, its name was changed to Dhanlaxmi bank as before that it was called Dhanalakshmi bank. They try to stay abreast with the latest technologies; in 2015, they launched a mobile called “Dhan Smart” to ease transactions for the customers.

They have opened 181 bank branches across the country and 26 extension counters. Their vision is to become a strong and innovative bank and want to take the social responsibility to maximize customer satisfaction.

• Revenue: Rs 65.78 Cr
• Net Profit- Rs11.67 Cr
• NIM: 3.21%
• CASA: 33.40%
• ATMs: 112
• CRAR: 14.41%
• Gross NPA: 5.90%
• Total deposits growth- 2.84%

15. IDBI Bank

It is a full-service universal bank that offers a huge range of financial services to its customers. Some of the major services that they offer are deposits, loans, payment services, and investment solutions. They understand the customer’s needs pretty well and ensure to deliver remarkable financial solutions and excellent customer services.

As per today’s changing world and it’s needs, they are keeping up with the latest technologies so that they can provide a unique range of digital services that would go well with their pan-India network of branches and ATMs.

They have their customer support available 24*7 so that if you face any issue or trouble, you can get help immediately. IDBI Bank offers a perfect combination of innovation, safety, and convenience in all transactions and services.

Also Read: How to Open a Bank Account for a Minor in India

They aim to become “the most preferred and trusted bank enhancing value for all stakeholders’ defines and shapes our day-to-day business, helping us to build long-lasting relationships.”

• Revenue: Rs 135.39 Cr
• Net Profit- Rs378 Cr
• NIM: 2.87%
• CASA: 47.74%
• ATMs: 3394
• Branches: 2095
• Gross NPA: 23.52%
• Total deposits growth- 2.85%

16. J&K Bank

It is a universal bank in Jammu & Kashmir and Ladakh and is a specialized bank in the rest of the country. This is also a pretty old bank that was established back in 1938. They are headquartered in Srinagar, Jammu, and Kashmir. They are also recognized as the agent for RBI for baking business and carrying out banking business requirements of Jammu & Kashmir and Ladakh, plus they also collect central taxes for CBDT.

Their business model is pretty different from other banks as they work on the two-legged business model, wherein they try and increase lending in the home territory and search to capture niche lending opportunities on a pan-India basis.

J&K bank has a total of 1038 branches and 1340 ATMs nationwide. They operate on the principle of “socially empowering banking” and yearn to deliver excellent financial services for small and medium enterprises plus for retail customers as well.

• Revenue: Rs 6.50 Cr
• Net Profit- Rs 43.93 Cr
• NIM: 3.86%
• CASA: 53.32%
• ATMs: 1382
• Branches: 956
• Gross NPA: 8.87%
• Total deposits growth- 10%

17. Karnataka Bank

The tag line of this Bank is very impressive, just like its services, i.e., “Your family bank across India.” The good thing about this Bank is that they treat every customer special and understand that all customers have unique needs. Regardless of the size of your business, they understand the needs and provide excellent financial solutions.

Karnataka Bank provides a comprehensive range of customized products and services that are perfect for trade, market, business, and personal use. Some of the significant services they offer are borrowing facilities, offering maximum returns on surplus funds, deposits, or helping with overseas transactions.

You can be completely sure about the quality in all aspects of their solutions and services with them. Karnataka Bank is updated with the latest technology so that it can match your expectations for today and the future.

• Revenue: Rs 315.73 Cr
• Net Profit- Rs 196.38 Cr
• NIM: 3.08%
• CASA: 29.17%
• ATMs: 1026
• Branches: 862
• Gross NPA: 3.97%
• Customer base- 10.21 million

18. Karur Vysya Bank

This Bank was set up in 1916 to provide financial support to traders and agriculturists in Karur; it is a town in Tamil Nadu. It carries the tradition for 103 years and has become one of the top financial institutions in the country.

With a lot of hard work and precision, they have 782 branches and 1685 ATMs in 20 states and 3 union territories. They provide a plethora of financial services to millions of customers under one roof.

Karur Vysya Bank has a different way of working as per their directors they wish to “Delight customers continually by blending tradition with technology to deliver innovative products and services at affordable rates through a pan India branch network.”

Their mission is to strengthen the financials by maximum utilization of funds and to ensure financial discipline. They plan to adapt to the new technology to provide innovative products and services to their customers.

• Revenue: Rs 107591 Cr
• Net Profit- Rs 84 Cr
• NIM: 3.44%
• CASA: 33.86%
• ATMs: 1685
• Branches: 782
• Gross NPA: 2.99%

19. Nainital Bank

This Bank was established in 1922 to fulfill the baking needs of the people in that region. Later, in 1973 RBI advised the Bank of Baroda to manage the affairs of this Bank. It gained a lot of customer base because of the amazing services that they offer. Today they have opened 160 branches that are in Delhi, Haryana, Uttar Pradesh, Uttarakhand, and Rajasthan.

All branches of Nainital Bank are operating on the CBS platform. Some of the significant services they offer are RTGS, NEFT, SMS Alerts, RuPay ATM cum Debit Card, NainiNet Internet Banking, and Mobile Banking facilities.

People prefer using the services of this Bank because it is a customer-centric bank and offers quick and personalized services to its customers in the best possible way.

• Revenue: Rs 11797.46 Cr
• Net Profit- Rs 44.85 Cr
• NIM: 2.72%
• CASA: 2.50%
• ATMs: 1685
• CRAR: 12.94%
• Gross NPA: 4.89%

20. RBL Bank

It is one of the fastest-growing private banks in India, and it is expanding its services and branches all over the country. Currently, they have 403 bank branches, 1344 business correspondent branches, and 412 ATMs across 28 states and Union territories.

This Bank was initially known as Ratnakar bank when it was founded in 1943. They are headquartered in Mumbai. RBL has expertise in majorly six areas: corporate & Institutional Banking, Commercial Banking, Branch & Business Banking, Retail Assets, and Treasury and Financial Markets Operations.

Also Read: 20 Best Banks for Business Loan in India

They yearn to become a bank that is everyone’s choice by offering quick and unique financial solutions. RBL team says that they have customers at their heart; employees are their pillar, and shareholder value is their focus. To achieve all this, they offer best-in-class products and services plus offer an environment where employees can work comfortably.

• Revenue: Rs 147.1 Cr
• NIM: 4.93%
• CASA: 18%
• ATMs: 412
• Branches: 403
• CRAR: 17.9%
• Gross NPA: 1.84%
• Customer Base: 8.76 million

21. Tamilnad Mercantile Bank

In the list of private banks in India, Tamilnad is again one of the oldest banks. It was founded in 1921, and at that time, it was named Nadar Bank, and later in November 1962, it changed its name to Tamilnad Mercantile Bank. It is headquartered in Thoothukudi, Tamil Nadu.

They excel in various financial services such as internet banking, mobile banking, tab banking, loans, fixed deposits, online bill payment, and much more. Tamilnad Mercantile Bank has opened 509 branches, 12 regional offices, 11 extension counters, and 11151 ATMs across the country.

They have the vision to open more branches to serve more and more people by providing those services at the most reasonable prices.

• Revenue: Rs 408 Cr
• NIM: 3.03%
• CASA: 16.48%
• ATMs: 11151
• Branches: 509
• CRAR: 14.31%
• Gross NPA: 3.62%

This was the list of private banks in India 2022; all of them excelled in some of the other services. It depends on you what financial service you require but makes sure that you compare both the pricing and transparency in policies before opting for any bank.

FAQs

Q1) How many private banks are there in India?

In 2020, many banks got merged, and now there are 21 private banks in India as of 2022.

Q2) Which are the 21 private banks?

Here is the list of all the private banks for you:

Although, all the banks are good and it totally depends on your requirement which bank suits you. But, as per total sales and market capitalization, HDFC wins the number one private bank in India. In fact, it has the highest turnover of Rs. 101,561 Cr the previous year.

Recommended: List of Swadeshi Products and Companies

Bottom line, this was the list of private banks in India, which comprises 21 big and reliable banks. HDFC is the largest private Bank as per its total assets and turnover of last year.  But, as mentioned earlier, choosing the appropriate Bank for yourself would depend on your financial requirements as some banks provide utmost security, a few are reasonable, some may have remarkable customer services, and a few might be the combination of these qualities. So, choose the best and enjoy their excellent services. Happy banking!!

The post List of Private Banks in India (2023) appeared first on Moneymint.

Whether you have a savings account or a current account, it is a form of a negotiable instrument that guarantees the specific amount of payment to the bearer of the instrument. The account holder must enter the party’s name to who they want to make the payment; the next thing is to mention the amount, date, and sign it.  The bank ensures all the details are filled in; only then make the payment to the person (payee) from your account.

What is a Bearer Cheque and Order Cheque?

Types of Cheques

There are various types of cheque books depending upon the type of account you have. Listed below are some types of cheques that you should know about:

1. Bearer Cheque: A bearer cheque is the one in which the payment rights are exclusive with the cheque holder, which means the person who is carrying the cheque at that time is entitled to get the payment. These cheques are transferable only by delivery.

2. Crossed Cheque: A crossed cheque is crossed with two parallel lines at the top-left corner of the cheque. You may have also noticed ‘a/c payee’ written above these lines signifying the payment will be transferred to the bearer’s bank account whose name is written on the cheque. Crossed cheques are safer than bearer cheques as they can only be encashed at the payee’s bank.

3. Order Cheque: When the word ‘Or Bearer’ is canceled, and the name of the individual or a firm is specified in the ‘Pay’ section, it becomes an order cheque. Primarily, the role of this cheque is to ensure the payment is made to the right person.

4. Post-Dated Cheque: As the name suggests, a cheque becomes post-dated when a drawer writes the date which is yet to come to the date on which it is presented to the bank. Post-dated cheques have validity for six months from the date of the cheque.

5. Open/Uncrossed Cheque: A cheque can be considered an open/uncrossed cheque when a drawer puts his signature on the cheque’s front and back. This cheque can be presented in any bank, and the payment will be made to the payee. Moreover, an open cheque is transferable, too, from the original payee to the other payee.

6. Banker’s Cheque: The bank issue these cheques to pay for remittance purposes. These cheques are either acquired from the bank or provided to a customer of a bank. Bankers cheques are also called non-negotiable instruments as no bank is allowed to dishonor these cheques.

7. Traveler’s Cheque: Some travelers carry these cheques while they are o vacation instead of carrying hard cash. The ones carrying traveler’s cheques encash it from the local bank in the country’s currency they are traveling to. These cheques have no validity and can be used for future trips.

8. Stale Cheque: Stale-cheques are the ones that are already expired and are no longer valid. The banks do not accept these cheques as payments cannot be withdrawn from stale cheques. Instead, the ‘stale cheque account’ may be created, and the amount is debited in the bank book. Till the fresh cheque is issued, the ‘stale cheque account’ will not be debited.

9. Self-Cheque: Self-cheques can only be withdrawn from the account holder’s bank. It is simple to identify whether it is a self cheque or not. If you see the word ‘Self’ in the Pay column of the cheque, this means it is a self-cheque.

10. Mutilated Cheque: When a cheque is torn into 2 pieces, such cheque is known as Mutilated Cheque. The bank only makes the payment and honors the cheque after getting confirmation of the drawer.

Also Read: List of Scheduled Banks in India

1. What is Bearer Cheque?

A cheque is called a bearer cheque when ‘or Bearer’ written on the cheque is not canceled. The bearer cheque is also known as the carrier cheque.

Bearer cheques are usually used for cash transactions and are withdrawn by the individuals carrying the cheque and presenting it to the bank. This bearer cheque does not require the account holder to sign at the back part of the cheque.

By now, you would have got a brief idea about what is bearer cheque is. The best part about these cheques is banks need no authorization from the account holder or the issuer before making the payment to the bearer if the bearer is carrying the required documents such as identity proof. Bearer cheque proves to be beneficial unless it gets stolen or handed over to any unwanted person.

2. What is Order Cheque?

A cheque is considered to be the Order Cheque when ‘Or Bearer’ words are canceled and ‘Or Order’ is written on the cheque. This type of cheque can be withdrawn in cash by a specific person on whose name the cheque has been drawn. The cheque receiver only needs to show his identity to the bank by submitting a document to prove he/she is the same person whose name is written on the cheque.

How to Write a Bearer Cheque?

Do you want to know how to write a bearer cheque? We have made it a little easy for you by demonstrating the Bearer cheque sample below:

• This cheque does not contain the name of the payee or bearer. Thus, the drawer must write ‘Self’ or ‘Pay to The Order of Cash’ to carry on the transaction through this cheque.
• The date on which the cheque is issued needs to be mentioned.
• Mention the amount you want to pay to the bearer in the ‘rupees’ section, in the numbers and words. Also, do not forget to write ‘only’ in the ‘words’ section and put ‘/-’ at the end in the ‘rupees’ column.
• The last and the most crucial step is to sign the cheque above the ‘Authorized Signatory’ section matching the specimen signature recorded in the bank.
• It is also important to note that you are not signing on the MICR band.
• Never leave any space in between the Words, Rupees, or Pay column as fraudsters get a chance to commit fraud. To help you understand with an example, just check out the image below:

In this type of cheque, the fraudster could easily use the spacing between ‘Seven’ and ‘Thousand’ and add a stroke ‘0’ in the Rupees column. This way, they get a chance to counterfeit.

Also Read: How to write a Cheque in India?

Who can withdraw the Bearer Cheque?

There is no name mentioned on the bearer cheque, so the individual presenting the cheque to the bank for encashment is only liable to get the entire payment.

Withdrawal Rules On Bearer Cheques

Handling bearer cheques are not very safe as the name is not mentioned on these cheques. This implies if the cheque is lost and the person who finds it gets entitled to receive the payment from the bank.

To restrict the usage of this cheque and make them more secure, banks have executed a certain set of rules for withdrawing money through bearer cheques. These rules are mentioned below:

• If the bearer cheque presented by an individual exceeds Rs. 50000, the bank always asks for that person’s identity proof before disbursing cash. It happens if the individual presenting the cheque is not the account holder. However, if the amount is less than Rs. 50000, the bank may or may not ask for any address proof even if the person is the non-account holder.
• The Reserve Bank of India has made it mandatory for all the banks and cautioned them while encashing bearer cheques. According to RBI, the banks must insist on the KYC verification of the customer before processing a transaction through bearer cheques.
• The bank has no right to insist on the presence of the account holder if it is ‘Bearer’ or ‘Self’ cheques unless time prevails.
• In case the individual presenting the bearer cheque in the bank is not carrying any address or identity proof, the bank can make the payment above Rs. 50000 only after granting official permission from the bank manager. In this situation, the bank manager inquiries from the account holder by contacting him and only then allows the transaction to occur.

Can a Bearer Cheque be cashed from any bank?

Yes, the presenter of the cheque can visit any bank branch in the country, and the bank cannot deny making the payment to the person presenting the cheque. The only thing to ensure is that the individual must go to the same bank branch that the cheque belongs to.

Also Read: Banking System in India Explained

Is there any Withdrawal Limit for Bearer Cheques?

No, there is no withdrawal limit on bearer cheques. However, if the amount is above Rs. 50,000, the bank asks for an ID and verifies the person’s identity in whose name the cheque has been issued. Once the verification is completed, the bank hand over the amount to the person presenting the cheque or the bearer.

Cash Payment of Bearer Cheques

The banks are liable to pay the person on whose name the drawer draws the cheque. That’s why banks always get the bearer to sign the back of the cheque as a token of having received the amount written in the cheque. This activity was promoted to reduce the cheque fraud that was happening earlier and helped minimize sharp practices.

Which cheque is better, bearer or order? (Bearer cheque vs. Order cheque)

1. A bearer cheque is the one in which the word ‘or bearer’ is canceled. On the contrary, If the word ‘or bearer’ is not canceled, it becomes an order cheque.
2. Bearer cheque is paid to the person presenting the cheque in the bank, while the order cheque is paid to the payee on whose name the cheque is made. Although, for order cheques, it is not mandatory for the payee to personally submit the cheque to the bank.
3. The bank may ask for the ID proof of the presenter of the cheque as proper verification is done in case of bearer cheques. Moreover, the receiver needs to sign the back of the cheque once they receive the payment. While, for order cheques, the payment is made to the specified person who is entitled to receive the payment as the name of the individual is already mentioned on the cheque.
4. Bearer cheque can only be transferred by delivery. However, order cheques can be transferred by both, that is, endorsement and delivery.

Note: All in all, it cannot be predetermined which cheque is better. As it depends upon the nature of the business and the purpose of using the cheque.

What are the Reasons for Dishonour of Cheque?

Dishonor of cheque is considered to be a criminal offense and is a punishable act. If your cheque bounce, you might get imprisoned for up to 2 years or penalized with a heavy amount. It can also damage your credit history immensely.

Thus, you should be cautious, and knowing why the dishonor of cheque happens, is imperative not to let these things affect your reputation and finances. Your cheque can be dishonored due to multiple reasons, including:

• If there are insufficient funds in the holder’s account.
• If the name of the person is not written immaculately or it is left blank.
• If the cheque is overwritten.
• No room for mistakes/alterations on cheques.
• The signature should match with the specimen signature kept by the bank.
• If the signature is absent.
• If the amount written in the ‘Words’ column does not match what is written in the ‘Amount’ section of the cheque.
• If your account number or name is not clearly visible on the cheque.
• If the high court instructed the bank to restrict the payment of the cheque.
• If the Payee’s/Drawer’s account is closed or not operational.
• If the date is incorrect or mentioned more than 3 months before.

Also Read: The Charges & Penalty under Cheque Bounce

So, what is a bearer cheque? This question has so many answers in this guide. Also, we have explained the steps signifying how to write a bearer cheque? Once you start using these cheques, you will need not look at this bearer cheque sample.

A study was conducted in India demonstrating that the customers are shifting over to faster and digital payment methods from the past couple of years. Now, they can transfer the money from anywhere in the world simply by following a few steps and a clicking button; why would they still use cheques in 2021. this decline reflects changes in the payment market as a result of technological change.

However still, many companies/businesses/organizations still use cheques with many convenient benefits.

You may also check out how to make online money through the list of articles we have posted on our website. You can check out the most effective ways and review us if those ways work for you.

The post What is Bearer Cheque? appeared first on Moneymint.

As of now, there are 12 public sector banks and 21 private sector banks in India. A good banking system helps the country in increasing economic development and has also inculcated the trend of saving amongst people. There are various types of banks in India, and all of them are reliable and safe as they are approved by the apex bank of the country, which is the Reserve Bank of India (RBI).

Type of Banks: Different Types of Banks in India

Structure of Banks in India

Banks are divided into four categories:

1. Commercial Banks

• Public Sector
• Private Sector
• Foreign Banks
• Regional Rural Banks

2. Cooperative Banks

• Urban cooperative
• State cooperative

3. Small Finance Banks

4. Payments Banks

These were the major bank types, but before we know more about the different types of banks in India, first let us know about the Central bank.

Central Bank of India

Every country has one central bank that regulates and controls the other banks of the country. They are also called the banker’s bank or government’s bank, and all the central banks trace their history from the Bank of England. They are called central banks because they are the highest financial authority, and they occupy the central position of the banking system.

Reserve Bank of India is the apex bank of India; it keeps a close analysis and synchronizes with all the other banks in the country. It is solely responsible for monitoring and guiding other banks nationwide. They issue the country’s currency that is Indian Rupee.

Other major functions of RBI are:

• They assure financial security and pecuniary management from country to country and play a vital role in the country’s economy.
• They execute and guide financial and monetary strategies, approaches and making policies, managing foreign exchange & gold reserves, supervising the banking industry, etc.
• They also keep a check on the monetary system of India by handling the finances.
• RBI also purchases government debt, is a lender to commercial banks, and have a monopoly in issuing paper money
• All the functions they do are done under the supervision of the Indian government.

Scheduled Banks

These are the banks that were included in the Second Schedule of the RBI Act in 1934. For qualifying to become a scheduled bank, it was mandatory to have a paid capital of at least 5 lakh rupees. RBI gives loans to scheduled banks as and when required.

1. Commercial Banks

Banking primarily means accepting deposits in terms of money from the people for lending or investment. They are called financial intermediaries as they take funds from the depositors and provide them to borrowers. They are the oldest institutions in banking history and have a huge network of branches spread all over the country.

These banks and regulated and maintained under the Banking regulations Act, 1949. They are usually profit-making banks that completely depend on their business model. Their major functions are giving loans to the government, general public, corporate, debit & credit cards, bank accounts, and accepting deposits.

Commercial banks run in both government and private sectors.

Types of Commercial Banks:

• Public Sector
• Private Sector
• Foreign Banks
• Regional Rural Banks

Let us know about these banks in detail:

a. Public Sector Banks

They are also called the nationalized banks. In public sector banks, the major stake is of government, and they mostly give more emphasis to social objectives rather than profits. These banks have around 75% of the total banking business nationwide.

They ensure that there is no monopoly in the market and dominance of financial and banking services by a few banks. They also ensure that all the banks comply with the policies and regulations.

Also, they should keep a check that all banks:

• Assist the necessities of the deprived and weaker sections of the community
• Provision to the wants of agriculture and other priority sectors
• Restrict the consolidation of wealth and economic power
• Public sector banks give preference in constituting agriculture, small scale industries, and small businesses

As of now, there are 12 public sector banks in India.

List of Public Sector Banks:

Under the public sector bank comes Nationalized banks; let’s understand the difference between the public sector and nationalized banks.

Also Read: Merchant Banking in India

b. Nationalized Banks

After liberation, there were a few banks that were held privately. During that time, majorly private banks provided financial services. It was in the 60s that the Indian economy became an important factor in increasing the economy of the country.

It was in 1969 that the government nationalized 14 banks. Because of the nationalization of banks, the majority of the banking control came into the hands of the government.

List of the Nationalized Banks are:

• Allahabad Bank
• Andhra Bank
• Dena Bank
• Oriental Bank Of Commerce
• Syndicate Bank
• United Bank Of India
• Vijaya Bank
• IDBI Bank

In these banks, the maximum ownership is with private shareholders instead of the government. They are managed, owned, and held by private promoters, and private banks are free to operate as per market forces, but all the rules and regulations are laid by RBI only.

c. Private Sector Banks

The reason why RBI regulates these banks is to make sure safety and seamless functioning of these banks plus, it also eliminates the risk of monopoly in the financial sector. There are two types of private sector banks in India-

• Old Private Sector Banks: These are the banks that emerged before 1969
• New Private Sector Banks: These banks emerged after 1969 as not all the banks were nationalized in 1969. These banks entered the industry after the nationalization period. It was in 1993 that the RBI permitted the private sector to enter the banking system.

By 2009, in total, there were 7 private sector banks and 15 old private sector banks.

List of Private Sector Banks:

These were the type of banks in India that are privately owned. These are all the private banks that are currently operating in India.

Also Read: List of Private Banks in India

d. Foreign Banks

These are the banks with bank branches in India but have head offices in a foreign country. RBI permits these banks to run either through branches or by wholly-owned subsidiaries. The major use of foreign banks is in the corporate sector.

But, many big foreign banks have made financing a major segment of their portfolio. Some of the significant services that these banks offer are credit cards, home loans, automobile finance, and much more.

It is a mandate for foreign banks to imply with all the banking regulations by RBI. The extended presence of foreign banks has raised the race in the banking industry.

List of Foreign Banks:

There are 45 International banks in India with over 300 branches in the major cities. Here is the list for you:

e. Regional Rural Banks

These banks were set up by the government of India on October 2, 1975. These banks are operating in the various states of the country. The primary reason for creating them was to serve rural areas with all their banking and financial requirements. Their major customers are-

• agricultural laborers
• small and marginal farmers
• artisans
• small entrepreneurs

RRB’s are backed by scheduled banks and principally by a nationalized commercial bank. All RRB’s are controlled both by the State and Central government and a sponsoring public sector commercial bank. But, there are a lot of urban areas as well where the branches of RBB are set up.

The good part is that the government has taken several steps to increase the profitability and viability of RBIs. One of the major steps is uniting them with the same sponsored bank within a state.

There are 43 RBIs in the country; let us see the list of the banks along with their sponsored banks.

List of Regional Rural Banks:

Also Read: 10 Best Savings Bank Accounts For Children In India

2. Co-operative Banks

These banks come under the scheduled banks. Cooperative banks are organized under the state government’s act. Their primary role is to offer short-term loans to the agriculture sector in India. They are also called the mutual savings bank that is created to offer credit to its members at lower prices.

They are operated by the elected members of the managing committee and registered under the Cooperative Societies Act, 1912. Cooperative banks ensure the social well-being of the public, and they have a 3-level format-

a. State Co-operative Banks

At this level comes the state-level cooperative banks that comprise of NABARD finance government and the RBI. In these banks, public distribution of the money is done.

The ownership of these banks belongs to the government, and there are a few members who select the major management. SLR charges and concessional CRR also apply to these banks.

List of State Co-operative banks

• Kerala State Co-operative Bank Limited
• The Maharashtra State Co-operative Bank Limited
• Mizoram Co-operative Apex Bank
• Tamil Nadu State Apex Co-operative Bank
• West Bengal State Co-operative Bank
• The Delhi State Co-operative Bank Ltd
• Manipur State Co-operative Bank Ltd
• The Gujarat State Co-operative Bank Ltd
• Rajasthan State Co-operative Bank Ltd

These are the district-level cooperative banks, and they are set up for the development of the agricultural sector in rural areas. There also run non-agricultural cooperatives with other unions. There is a district-level bank in each district in the country.

b. Central Co-operative Banks

A State Apex Central Co-operative bank represents every district-level bank. These banks are given loans at a very concessional interest rate which would always be 1%-2% less than the standard bank rate.

c. Primary Agricultural Credit Societies

They are the rural or village level cooperative banks. Their primary motto is to help and assist the agriculture sector financially. For keeping track and check on these banks government has given the responsibility to NABARD.

List of Urban Co-operative banks

• Abhyudaya Co-operative Bank Ltd
• Ahmedabad Mercantile Co-Op Bank Limited
• Amanath Co-operative Bank Limited
• Andhra Pradesh Mahesh Co-Op Urban Bank Limited
• Apna Sahakari Bank Limited
• Bassein Catholic Co-operative Bank Limited
• Bharat Co-operative Bank (Mumbai) Limited
• Bombay Mercantile Co-operative Bank Limited
• Citizen Credit Co-operative Bank Limited
• Cosmos Bank
• Dombivli Nagari Sahakari Bank Ltd.
• Fingrowth Co-operative Bank Limited
• Goa Urban Co-operative Bank Limited
• Gopinath Patil Parsik Janata Sahakari Bank Limited
• Greater Bombay Co-operative Bank Limited
• GS Mahanagar Co-operative Bank Limited
• Indian Mercantile Co-operative Bank Limited
• Jalgaon Janata Sahakari Bank Limited
• Jalgaon People’s Co-operative Bank Limited
• Janakalyan Sahakari Bank Limited
• Janalaxmi Co-operative Bank Limited
• Janata Sahakari Bank Limited
• Kallappanna Awade Ichalkaranji Janata Sahakari Bank Limited
• Kalupur Commercial Co-op Bank Limited
• Kalyan Janata Sahakari Bank Limited
• Karad Urban Co-operative Bank Limited
• Mapusa Urban Co-operative Bank of Goa Limited
• Nagar Urban Co-operative Bank Limited
• Nagpur Nagrik Sahakari Bank Limited
• Nasik Merchant’s Co-operative Bank Limited
• New India Co-operative Bank Limited
• NKGSB Co-operative Bank Limited
• Nutan Nagarik Sahakari Bank Limited
• Osmanabad Janata Sahakari Bank Limited
• Pravara Sahakari Bank Limited
• Punjab and Maharashtra Co-operative Bank
• Rajarambapu Sahakari Bank Limited
• Rajkot Nagrik Sahakari Bank Limited
• Rupee Co-operative Bank Limited
• Sangli Urban Co-operative Bank Limited
• Saraswat Bank
• Sardar Bhiladwala Pardi People’s Co-op. Bank Limited
• Shamrao Vithal Co-operative Bank
• Shikshak Sahakari Bank Limited
• Solapur Janata Sahakari Bank Limited
• Surat Peoples Coop Bank Limited
• Thane Bharat Sahakari Bank Limited
• The Akola Janata Commercial Co-operative Bank Limited
• The Akola Urban Co-operative Bank Limited
• The Jaynagar Majilpur People’s Co-Operative Bank Limited
• The Khamgaon Urban Co-operative Bank Limited
• The Mehsana Urban Co-Op Bank Limited
• TJSB Sahakari Bank
• Vasai Vikas Sahakari Bank Limited
• Zoroastrian Co-operative Bank Limited

Also Read: Types of Joint Accounts Available in Banks in India

3. Small Finance Banks

These banks are regulated and monitored by the government of the country. They cater to a niche segment in society and assist with the financial inclusion of sections that are not taken care of by other major banks. The various sectors that they majorly serve are small industries, farmers, the unorganized sector, etc. The governing bodies of small finance banks are RBI and FEMA.

List of small finance banks in the country:

• AU Small Finance Bank
• Capital Small Finance Bank
• ESAF Small Finance Bank
• Equitas Small Finance Bank
• Fincare Small Finance Bank
• Utkarsh Small Finance Bank
• Jana Small Finance Bank
• Suryoday Small Finance Bank
• Northeast Small Finance Bank
• Ujjivan Small Finance Bank

It is a new banking model in India that has been recently approved by RBI with limited operations. These banks accept a maximum of rupees one lakh from one customer.

4. Payments Bank

Major services which they offer are debit cards, mobile banking, net & online banking, etc. They do not offer the facility of bank loans or credit cards as of now.

List of the Payments banks are:

Specialized Banks

Banks are called specialized banks because they were started for determined purposes.  They excel in a specific product, service, or field and offer mission-based services to a particular section of society. Export and Import Bank (EXIM) is a part of specialized banks.

Specialized banks offer different types of products or services such as foreign trade, financial assistance to industries, and heavy turnkey projects. They are also responsible for the industrial and economic development of the country.

Types of Specialized banks

1. Investment Banks

This financial institution aids retail customers, organizations, and the government raise capital by underwriting or acting as the client’s agent in the issuance of securities. They also help companies that are undergoing mergers, acquisitions and offer other services like-

• Trading of derivatives

market-making

• Fixed-income instruments
• Commodities
• Foreign exchange
• Equity securities

They also help the companies and individuals obtain funds and guide them on a wide range of transactions.

2. Industrial Banks

Their primary motto is to help and promote industrial development. They offer both medium and long-term loans to industrial sectors that are backed by supervision, consultancy, and expertise. They also offer other services to industries such as-

• Project classification
• Offering technical guidance
• Formation of project reports
• Managerial services
• Underwriting of public issues
• Help industrial units in getting capital by a consortium

Some of the industrial banks in India are the Industrial Development Bank of India (IDB), Industrial Credit and Investment Corporation of India Ltd. (ICICI), Industrial Finance Corporation of India (IFCI), Industrial Reconstruction Bank of India (IRBI), etc.

Also Read: 20 Best Banks for Business Loan in India

3. Retail Banks:

These banks offer regular services to retail customers. Some of the primary services that they provide are:

• Savings accounts
• Secured and unsecured loans
• Recurring and fixed deposits
• Safe deposit boxes
• Certificates of deposit (CDs),
• Mortgages
• Consumer and car loan
• Checks and savings accounting
• Personal credit cards

Types of Retail Banks

1. Community Development Banks- These banks offer services, particularly to an underserved market.
2. Private Banks- Several retail banks run the assets of individuals with high net worth and offer special services such as wealth management.
3. Savings Banks- These banks can also be deposit-oriented bank branches that might also be an extension of an existing bank branch that accepts savings deposits and offer basic banking services.
4. Postal savings Banks- These banks are managed and run by National Post Departments. They provide basic services to individual customers. It has been observed that postal savings banks are more beneficial in small towns and villages.

4. Land Development Banks

These banks are made especially to support agriculture and land development. The best thing about these banks is that they offer long-term loans to the agriculture sector for various purposes like buying tractors and pump sets, land improvement, digging wells, etc.

Land Development gets funds by issuing debentures that are mostly subscribed by State Bank groups, LIC, other commercial banks, and RBI itself. Farmers get loans against the security of their land through land development banks.

5. Import-Export Banks

The government sets them up for promoting trade activities in import and export. Various services that they offer to importers and exporters are:

• Financial assistance
• Act as their major financial institution
• Facilitates the growth of international trade
• Financing of export-oriented units
• They also finance and insure the foreign purchase of goods for customers who are unable to accept credit risk.

Recommended: List of Commercial Banks in India

This article increases awareness of the types of banks in India. Also, this would help you make a wise decision on which bank to invest in or which bank can give you more benefit in terms of interest, loan, cards, etc. So, choose wisely and invest in the bank where you think you can reap maximum benefits.

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