Opening Bank Accounts
Opening a Business Bank Account in India
One of the first step taken by all Entrepreneurs after starting a business is to open a bank account in the name of the business. Having a bank account in the name of the business allows the business to undertake commercial transactions and also serves as a way of establishing a businesses credibility in the marketplace. In this article, we look at the procedures for opening a bank account and the documents required.
Opening a Business Bank / Current Account
Reserve Bank of India’s Know Your Customer Norms (KYC Norms) details the procedures that the bank should follow while the opening of bank accounts. The KYC norms as prescribed by RBI also prevent banks from being used by criminal elements for money laundering or terrorist financing activities and enables the banks to know its customers better. Note that even though the following are the KYC Norms as prescribed by RBI, each bank may uniquely require documents and information as prescribed by the bank’s internal regulations for the opening of an account.