Explain in Detail the following : a. Current Accounts and Savings Accounts and their features, b. Cheque-book facility, its meaning and implications, c. Cheque Clearing System d. Super Savings Account with Auto Sweep Facility to FD e. Calculation of interest on SB Accounts f. Differential Rate of Interest on SB Accounts g. Operational details of account opening, h. KYC up-dation and Re-KYC i. Nomination j. CASA Accounts linked to Debit Cards k. Difference between Debit and Credit Cards l. Charges for not maintaining Min Balance m. Offline and Online Charges in CASA accounts n. Standing Instructions from CASA Accounts o. Cheque Stop Payment Instructions p. 3-in-1 Account ? Demat, Trading and Savings Account q. Jan Dhan Account r. Unclaimed Deposits s. Prompt Corrective Action and Moratorium t. Deposit Withdrawal restrictions in case of Moratorium?
Solution:
The solutions to your (a., d., k. , r.) query has/have been provided below:
A. Savings account: Saving Account is account that can be opened by an individual or jointly by two people for the purpose to save money. Bank pays interest on saving account balance.
Features of the Savings account:
1. There is no limit to the number of times the account holder can deposit money in this account but there is a restriction on the number of times money can be withdrawn from this account.
2.The rate of interest that an account holder get varies from 4% to 6% per annum
3. There is no minimum balance that needs to be maintained for this type of an account
4. The savings account holders can get an ATM/Debit/Rupay Card.
Current Account: Current account is mainly for business persons, firms, companies, public enterprises etc and is not used for the purpose of investment or savings.
Features of the Current account:
1. There is no fixed number of times that money can either be deposited or withdrawn from Current Account.
2. A Current Account is actually a no interest-bearing deposit account.
3. Overdraft facility is available for current bank accounts.
4. Current Account is meant for daily transactions.
D. Super Savings Account with Auto Sweep Facility to FD : When balance in Saving Account surpasses a certain limit, then under the auto sweep facility, the surplus money is put into an FD. The bank would have decided upon a minimum maturity period for the FD. The threshold can be anywhere between Rs.25,000 and Rs.1 lakh.
K. Difference between Debit Card and Credit Card
R. Unclaimed deposits: Unclaimed Deposits is defined as balance in savings, current accounts, or term deposits which are not claimed for within ten years from date of maturity. These amounts are transferred by banks to “Depositor Education and Awareness” (DEA) Fund maintained by Reserve Bank of India.Unclaimed deposits can be claimed by their legal owners after satisfying certain conditions prescribed by RBI.
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The solutions to your (a., d., k. , r.) query has/have been provided below:
A. Savings account: Saving Account is account that can be opened by an individual or jointly by two people for the purpose to save money. Bank pays interest on saving account balance.
Features of the Savings account:
1. There is no limit to the number of times the account holder can deposit money in this account but there is a restriction on the number of times money can be withdrawn from this account.
2.The rate of interest that an account holder get varies from 4% to 6% per annum
3. There is no minimum balance that needs to be maintained for this type of an account
4. The savings account holders can get an ATM/Debit/Rupay Card.
Current Account: Current account is mainly for business persons, firms, companies, public enterprises etc and is not used for the purpose of investment or savings.
Features of the Current account:
1. There is no fixed number of times that money can either be deposited or withdrawn from Current Account.
2. A Current Account is actually a no interest-bearing deposit account.
3. Overdraft facility is available for current bank accounts.
4. Current Account is meant for daily transactions.
D. Super Savings Account with Auto Sweep Facility to FD : When balance in Saving Account surpasses a certain limit, then under the auto sweep facility, the surplus money is put into an FD. The bank would have decided upon a minimum maturity period for the FD. The threshold can be anywhere between Rs.25,000 and Rs.1 lakh.
K. Difference between Debit Card and Credit Card
| Debit Card | Credit Card |
| Debit Card is issued by Bank to its customers for making payments directly through account of customers on any purchase. | Credit Card is issued by Bank or any other financial institution for making payment by Bank on behalf of customer on any purchase. |
| It is a card to pay now. | It is a card to pay later. |
| No Interest is charged. | Interest is charged if payment is not made within specified time period. |
| The amount is directly deducted from customer's account. | The card holder has to make payment within 30 days of every month. |
R. Unclaimed deposits: Unclaimed Deposits is defined as balance in savings, current accounts, or term deposits which are not claimed for within ten years from date of maturity. These amounts are transferred by banks to “Depositor Education and Awareness” (DEA) Fund maintained by Reserve Bank of India.Unclaimed deposits can be claimed by their legal owners after satisfying certain conditions prescribed by RBI.
For remaining queries, we request you to post them in separate threads to have rapid assistance from our experts .