Banking Terms

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Pan Card

Ø  PAN is expanded as Permanent Account Number

Ø  PAN is a 10-digit alphanumeric number that is issued in the form of a card.

Ø  It serves as a universal identification factor for tracking high value transactions and ensures that all financial transactions are in compliance with tax laws

Ø  The aim of PAN is to prevent tax evasions. 

Ø  Income Tax department in India has made it mandatory for all Indians to have a PAN card, irrespective of their tax filing status.

Where is PAN needed?

Ø  PAN is a must for depositing Rs.50,000 or more in any bank.

Ø  PAN Must for operating demat accounts or for opening a bank account.

Ø  For cash payment of a minimum of Rs.50, 000 for buying bankers cheques, bank drafts or pay orders on a single day.

Ø  Selling or buying immovable property worth Rs.5 lakhs or more. If the property is co-owned, the PAN of both owners must be mentioned.

Ø  Sale or purchase of shares, bonds, derivatives, debentures or other securities over Rs.1 lakh.

Ø  An investment exceeding Rs.50, 000 in shares, mutual funds or post office savings.

Ø  Payment of a minimum of Rs.25, 000 against hotel or restaurant bills.

Ø  Payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time. 

BASIC SAVING BANK DEPOSIT ACCOUNT

BASIC SAVING BANK DEPOSIT ACCOUNT is a zero balance account which can be started in any bank in India. Guidelines regarding this were published by RBI on August 10, 2012. BSBDA guidelines are applicable to "all scheduled commercial banks in India, including foreign banks having branches in India". 

Important Points to Remember

Ø  All the accounts opened earlier as 'no-frills' account should be renamed as BSBDA. Banks are required to convert the existing 'no- frills' accounts’ into 'Basic Savings Bank Deposit Accounts'.

Ø  The 'Basic Savings Bank Deposit Account' should be considered as a normal banking service available to all customers, through branches . The aim of introducing 'Basic Savings Bank Deposit Account' is very much part of the efforts of RBI for furthering Financial Inclusion objectives. 

Ø  An individual is eligible to have only one 'Basic Savings Bank Deposit Account' in one bank. Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings account in that bank. If a customer has any other existing savings account in that bank, he / she will be required to close it within 30 days from the date of opening a 'Basic Savings Bank Deposit Account'.

Ø  One can have Term/Fixed Deposit, Recurring Deposit etc., accounts in the bank where one holds 'Basic Savings Bank Deposit Account'.

Ø  Banks are advised not to impose restrictions like age and income criteria of the individual for opening BSBDA.

Ø  There is no requirement for any initial deposit for opening a BSBDA. vi. Banks should offer the ATM Debit Cards free of charge and no Annual fee should be levied on such Cards.

Ø  In BSBDA, banks are required to provide free of charge minimum four withdrawals, through ATMs and other mode including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMI etc… 

Ø  The Uniform rate of interest rates set by individual banks are applicable on the domestic savings deposit will be determined on the basis of end-of-day balance in the account. 

Ø  The normal saving bank account can be converted into BSBDA at the request of customer.

Ø  Total credits in such accounts should not exceed 1 lakh rupees in a year.

Ø  Maximum balance in the account should not exceed Rs. 50,000 Rs at any time

Ø  The total of debits by way of cash withdrawals and transfers will not exceed 10,000 rupees in a month.

Ø  Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities.

Ø  Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document.

Ø  Small Accounts can only be opened at CBS linked branches of banks or at such branches where it is possible to manually monitor the fulfillments of the conditions.

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