What are different types of bank accounts present in India?

Answer 1

Demat account

NRE A/c

NRO A/C

FCNR A/c

Sb a/c -Savings bank account

CC a/c - Cash credit account

CA a/c - Current account

Salary Account

Recurring deposit account

Overdue account - OD a/c

Fixed deposit account

Propreitorship account

Partnership account

Firm account

Company account == ==

Answer 2

Commercial Banks in India provide the following types of bank accounts for the benefits of their customers:

1. Savings bank account, where the thrust is on savings of the money for future emergenceis. Depositrs will get some interest on these deposits, but there will be some restrictions on the withdrawal of money. Ideal for salaried class of people, pensioners, etc who have a steady income every month. In oder to bring more rural and unbanked people into banking network (Called "Financial Inclusion") banks in India also open "No frills" account where no minimum amount is insisted while opening a SB account. In other words accounts are opened even with zero balance. No money is required to open this type of SB accounts.

2. Current account which is suited to the requirements of business people. Here no restrictions are placed on withdrawal or deposit oof money. Since any number of withdrawals are allowed in this account, banks do not give interest in this account. Further banks do matain account for the depositors of this account. Higly ideal for business people.

3. The third type of accounts, which is no where find in the advanced countries of the world, is the overdraft account, which is a loan account and which fluctuates between debit and credit balances. Here also no restrictions are placed in the account as to the number of withdrawals as well as deposits of money in this account.

This is burden to the banks sicne wherther a borrower on a particualr day, withdraws the money or not, banks have to keep the money ready upto the limit sanctioned to the customers everyday. In case the borrower doesn't withdraw the money, banks loses an opportunity to deploy that funds profitably elsewhere. Because of this reason in foreign countries this type of account is not encouraged. Borrowers lack financial discipline and this account is heavily loaded in favour of the borrower.

M.J. SUBRAMANYAM, XCHANGING CO, BANGALORE