How to Open a Bank Account in India?

In India, a large number of banks are in operation. Some of these are public sector banks, some private and some co-operative. Public sector banks are government owned banks. Co-operative banks are generally owned and operated by a group of individuals for mutual benefit. A private bank is one which is owned by one person or a limited number of private stockholders.

The procedure to open an account depends on the bank type.

Public Sector and Urban Co-op banks

If a person wants to open an account in any of these banks, he has to visit the branch personally.

The documents required for the opening are ration card or PAN card or voter's ID card and passport size photo. However the banks also have another important requirement. To start an account, you have to be introduced by a person who is already an account holder in the said bank.

This requirement is overlooked for a person working in a well known company. In such cases, a copy of the appointment letter is sufficient.

Limitations

• In case you don not know any person who can do introduce you, you cannot open the current account.
• If you already have a savings account and want to open a current account, you still have to be introduced by current account holder. This is quite inconvenient.

Private Banks

The procedure to open a salary or a current account in a private bank is a much simpler process. A DSA (Direct Sales Agent) from the bank visits the person interested in opening an account. He fills all the required forms and also arranges for your photograph taken. The paperwork is nearly negligible.

Two of the major private banks in India, HDFC and ICICI have nearly the same process.

A DSA visits the office of the person interested in opening an account. He collects the required documents namely PAN card copy or passport copy along with photo. In the case of ICICI bank, a certificate from a chartered accountant or the current bank account statements of some other bank may also be required. A cheque from any other bank can be issued to start the account. Generally HDFC bank starts the account immediately. However with ICICI banks, the account opening could take more than ten days. All the other related documents (like cheque book) are sent to the account holder by courier or post within a week.

Some branches of these private banks allows you to open starter bank accounts. These accounts require minimal paperwork and minimum opening balance. Normally, ATM cards and cheque books are issued the same day from the branch itself.

Keeping our requirements in mind we can open an account in any of the banks.