Many times in India, this question arises in the minds of people that can they open more than one bank account? Recently, it was rumored on social media and in some news that the Reserve Bank of India (RBI) has made a rule to impose penalty for keeping more than one bank account. But is it true? Let’s understand the latest guidelines of RBI in simple language and know how many bank accounts you can open.
RBI’s clear statement: No penalty
For some time now, the news was going viral that RBI has made a rule to impose penalty on those who keep more than one bank account. But the government and RBI have clearly rejected it. Press Information Bureau (PIB) posted on its official X handle and told that this news is completely fake. RBI has not issued any such guideline, which talks about penalty for keeping more than one bank account.
So, if you have more than one bank account, then you do not need to panic. You can keep your accounts running without any fear.
How many bank accounts can be opened?
According to RBI rules, any person in India can open as many bank accounts as he wants according to his need. There is no legal restriction in this. Whether you open accounts in different banks or multiple accounts in the same bank, it is completely up to you.
However, financial experts advise that you should not keep more than 2-3 bank accounts. The reason for this is that it can be difficult to manage more accounts. Also, a minimum balance has to be maintained in every account, and if you are unable to do so, the bank may charge you.
What are the rules for business?
If we talk about business or business, then RBI has made some special rules, especially regarding Current Account. These rules were issued on 29 October 2021, so that misuse of money can be prevented and transparency can be brought in the banking system. Let us understand these rules:
For those taking loans of less than Rs 5 crore: If you have taken a loan of less than Rs 5 crore from the bank, then you can open a current account without any restriction. You just have to tell the bank that if your loan becomes Rs 5 crore or more, then you will inform them.
For those taking loans of Rs 5 crore or more: If your loan from the banking system is Rs 5 crore or more, then you can open a current account only in the bank with which you have a cash credit (CC) or overdraft (OD) transaction.
Also, that bank should have at least 10% share in your total loan. Other banks can only open collection accounts, in which the deposited money has to be transferred to your CC/OD account within 2 days.
For those taking loans of more than Rs 50 crore: If your loan is Rs 50 crore or more, then your current account can be opened only in an escrow managing bank.
Haven’t taken any loan?: If you have not taken any cash credit or overdraft from the bank, you can open as many current accounts as you want. There is no restriction in this.
Why are these rules necessary?
RBI has made these rules so that money is not misused in business. Many times companies used to open current accounts in many banks and move money here and there, which caused losses to the banks. The purpose of these guidelines is to make the transaction of money transparent and reduce the risk of banks.
What is the advice for common people?
If you are a common man and you have not taken any big loan, then RBI’s guidelines are very easy for you. You can open a savings account or current account according to your need. But keep some things in mind:
- Minimum balance: There is a need to keep a minimum balance in every bank account. If you do not do this, the bank can charge you a penalty.
- KYC rules: For every new account, you will have to complete the KYC (Know Your Customer) process. In this, you have to provide your Aadhaar, PAN card and other information.
- Number of accounts: Do not open more accounts than necessary, as it may be difficult to manage them.
RBI and the government have made it clear that there is no penalty for keeping more than one bank account. Still, such fake news can spread on social media. Therefore, always get information from the official website of RBI (www.rbi.org.in) or the official source of the government. Check the truth of any rumor before trusting it.