Page 47 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes The following are the exceptions to the above. SF account can be opened in the name of the
following:

Companies licensed under Section 25 of Companies Act 1956, which are permitted not to
add to their names the word “limited “, e.g., Indian Banks Association
Societies Registered under Societies Registration Act 1860 or any other corresponding law
Primary co-operative credit society being financed by the bank
Any Government dept./body/agency in respect of grants/subsidies released for
implementation of schemes sponsored by Central Government subject to production of
an authorization from respective Govt departments to open savings fund account, e.g.,
District Rural Development Agency, Member of Parliament Local Area Development
Scheme, Khadi and Village Industries Board, Agriculture Produce Market Committee

Any trust/institution whose entire income is exempted from payment of income tax
Any other institution permitted by RBI on application made by the bank
SF account in the name of Hindu Undivided Family (HUF) can be opened if it is not
engaged in business activity

Development of children and women in rural areas
Self Help Groups
Farmers Club

Banks can also open SF account of state Govt dept./bodies/agencies in respect of grants/
subsidies released for implementation of various State Government plans subject to
obtaining an authorization that the department is authorized to open Savings Fund Account
from the department itself.

3.3 Minimum Balance/Account Opening Requirements

The minimum balance to be maintained in the account may differ from one bank to the other
since this area has been deregulated by the apex monetary body, the Reserve Bank of India.
Minimum balance: Maintenance/
Account opening Requirements: Savings Fund Accounts

Non-Core Banking Solutions Core Banking Solutions
Branches branches
Sl. No. Area Minimum balance(Rs)* Minimum
1 Rural As prescribed by the individual banks As prescribed by the
individual banks
2 Semi Urban As prescribed by the individual banks As prescribed by the
individual banks
3 Urban As prescribed by the individual banks As prescribed by the
individual banks
4 Metropolitan As prescribed by the individual banks As prescribed by the
individual banks

By and large, banks do not insist on the maintenance of minimum balance amount in respect of
staff members, pensioners, students, and salaried accounts (where salary is received for credit to
the customers’ accounts).

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