Tag: current account

Chqbook, NSDL Payments Bank tie as much as launch zero-balance digital present account

NEW DELHI: Chqbook, a neobank for small enterprise house owners, has launched a first-of-its-kind digital present account. Small enterprise house owners like kiranas, chemists, amongst others, can open a present account immediately on the Chqbook App from their smartphone and in a language they’re snug with. The present account is obtainable in eight languages making it extra accessible and simple to grasp.

The all new digital and instantaneous present account facility is a well timed innovation for greater than 63 million small companies in India. It furthers Chqbook’s imaginative and prescient of economic inclusion by empowering small enterprise house owners to entry monetary companies – present accounts, lending and insurance coverage, on their smartphones through the Chqbook App with no paperwork, to run and develop their enterprise.

A majority of small enterprise house owners transact by means of financial savings accounts resulting in accounts being frozen as a consequence of a number of credit or present accounts of co-operative banks giving them completely no digital interface. A banking transaction usually means a go to to a department, which is time-consuming, tedious and entails paperwork. Apart from that, it takes anyplace from 7-20 days to open a present account at a financial institution department.

A present account is a fundamental facility required by any enterprise proprietor to doc and monitor their bills, manage money movement and permit for simpler calculations of tax liabilities. A present account for enterprise, subsequently, permits for deposits, withdrawals and accepts UPI transactions. The newly launched present account addresses the standard problems with lengthy ready intervals and permits a small enterprise proprietor to open a present account inside minutes.

The present account facility on the Chqbook App digitizes your entire technique of account opening. Any android smartphone enabled enterprise proprietor can open a present account immediately. The digital present account gives all of the options together with downloading account statements to reconcile transactions, including and managing beneficiaries, offering transaction historical past, guaranteeing straightforward fund transfers and options enhanced biometric safety. Customers can even make money deposits simply. Chqbook is growing the variety of money deposit factors to over 1 Lakh areas over the subsequent few months, which reduces the time taken to go to a faraway department to deposit money. Further, prospects obtain the benefit of a zero-balance present account together with a free debit card. The prospects can even avail a POS machine with one single click on on the Chqbook App.

Chqbook has obtained robust traction inside two weeks of launch of its all new digital present account. Based on the preliminary traction, Chqbook will open greater than 100,000 present accounts inside this monetary yr.

“Chqbook’s cellular app brings collectively all of the monetary transactions a small enterprise proprietor should deal with, and these can be found on demand and at their fingertips. We wish to be sure that when a small enterprise indicators up with us, we provide all of them monetary companies that they should run and develop their enterprise and they don’t must step out and waste time. Our all new digital present account is a sport changer that may convey a major shift in the way in which digital banking companies are supplied to this underserved phase. Our launch at this time not solely appeals to our prospects with its localization however addresses on the bottom challenges, evident within the robust suggestions and early adoption. Going ahead, our efforts shall be to open at the least 20-25K present accounts in a month. Our aim is monetary inclusion at nationwide scale, and offering superlative buyer expertise by means of know-how, and we’re simply getting began” mentioned Vipul Sharma, Founder & CEO, Chqbook.

India’s rising Internet utilization and smartphone penetration with 725 million energetic customers, is revolutionizing entry to monetary companies. Aligning with the imaginative and prescient of a Digital India, Chqbook goals to empower small enterprise house owners with digital entry to monetary companies, throughout banking lending and insurance coverage, on the Chqbook app. With greater than 1.6 million app downloads and 250,000 energetic customers throughout India, Chqbook goals to assist make their small companies huge.

Chqbook is in early conversations with traders for its Series B fund elevate. The firm until date has raised a complete funding of $13 million from marquee traders together with Aavishkaar Capital, Rajiv Dadlani Group, Earlsfield Capital UK, Harsha Bhogle, Bharat Shyam, Ken Glass, Rohit Chanana, Bhupesh Kumar, Amit Manocha, Amit Singal, Nilesh Shrivastava, and Sakshi Vij.

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November 3, 2022
The hassle with having a number of financial institution accounts

To be certain, not all corporations implement such circumstances. It is unlawful for employers to disclaim wage to workers on these grounds, a lawyer, who didn’t want to be recognized, instructed Mint. Two of the wage accounts that the Delhi resident had opened earlier are not zero stability accounts as these have been transformed into common financial savings accounts by the banks involved. “Now, I’ve to take care of a median month-to-month stability (AMB) of ₹10,000 in every of these accounts,” he said.

This is not a standalone case and highlights that maintaining an AMB is the biggest expense associated with a savings account.

Bangalore-based Sagar Saha has had to lock in nearly ₹1.3 lakh across four accounts to fulfil MAB requirements. In the current financial year, the total interest earned on all his savings accounts will exceed ₹10,000 and he will need to pay 30% tax on it (as per his tax slab). However, Saha has opened these accounts out of his own will for various reasons.

“One was opened to lock-in a high interest of 8.3% on a recurring deposit (RD), one was for superior digital banking services and the remaining two were opened as salary accounts,” mentioned the 29-year-old.

Though it’s straightforward to open a number of financial institution accounts, sustaining all of them may be fairly difficult.

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Strings hooked up

You need to lock in a minimal sum to take care of AMB, and the extra accounts you’ve got, the extra money you’ll have to maintain in these accounts. This sum will over time lose worth because the rate of interest on financial savings accounts is a paltry 2.5-4%, which is approach under the inflation price.

Further, failing to take care of a minimal stability attracts a steep month-to-month penalty of 1.5-6% of the AMB (see desk), which may eat into the web curiosity yield. Bank accounts with a RD or fastened deposit of over ₹1 lakh don’t require AMB. The AMB is calculated by including every day’s closing stability and dividing it by the variety of days in that month. This means that you will want to carefully monitor statements of these accounts repeatedly to make sure that you’re not slipping under the AMB restrict. But think about doing that with 5-6 accounts.

“Just depositing the minimal required quantity as a one-time measure is probably not sufficient as banks auto-debit sure service charges that will scale back your stability. This occurred to me as soon as once I didn’t discover that my financial institution deducted the annual debit card payment that pushed down my stability under the minimal threshold and I used to be penalised for non-maintenance of the account,” mentioned Vinit Iyer, co-founder, Wealth Creators Financial Advisors, a Sebi registered funding advisor.

Take observe that banks don’t notify clients within the occasion of a default on AMB or earlier than any penalty is levied.

Many clients are additionally not conscious that banks convert a zero stability wage account into a daily financial savings account (that mandates AMB) if wage just isn’t credited in it for 3 to 6 consecutive months. Again, banks don’t intimate clients earlier than changing the account.

Multiple financial institution accounts additionally add to the tedious job of submitting the revenue tax return (ITR) as a result of you’ll nonetheless must report these within the returns even when the overall curiosity revenue is under the exemption restrict of ₹10,000 “Now that taxpayers have entry to AIS (Annual Information Statement), they will’t afford to overlook this,” said Rohit Shah, principal officer at Sebi-registered investment advisory firm GYR Financial Planners.

Further, one has to keep a record of all online banking login details that are unique to each account, track debit card expiry and renewal dates and ensure payments are made in time to prevent any of the accounts from becoming dormant.

One of the few upsides to having multiple accounts is that you can avail benefits on different debit card purchases. However, banks offer such perks typically to prime customers (those with a high monthly income). Do note that greater the rewards offered on a card, higher is its annual fee.

Saha has not given up his Citibank account for this reason. “I get cashbacks, rewards on almost all the purchases I make through my debit card. Further, it offers flat discounts on shopping with select merchants, such as Apple. For me, rewards on my Citibank account outweigh the service costs I have to pay on maintaining it,” he mentioned.

How a lot is an excessive amount of

Financial advisors are of the opinion that maintaining three financial institution accounts is greater than ample. Shah mentioned that an uncomplicated monetary life is likely one of the elementary stipulations for monetary freedom. “Closing these additional financial institution accounts is the simplest option to consolidate your monetary life,” he said.

Iyer concurred and added, “One can have a permanent account for all the incomes, one account for household expenses, which can be a joint account with your spouse, and a third one for personal expenses.”

Most personal banks assist you to shut accounts on-line on their netbanking web site after you’ve got settled all dues however State Bank of India and another banks will ask you to do that solely at a bodily department.

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First article

July 26, 2022
Quoting PAN or Aadhaar should for deposit/withdrawal of Rs 20 lakh, present A/C opening

The authorities has made it necessary to cite both PAN or Aadhaar for depositing or withdrawing over Rs 20 lakh in a monetary yr or opening of a present account.

The Central Board of Direct Taxes (CBDT), in a notification, mentioned furnishing the Permanent Account Number (PAN) or biometric Aadhaar will probably be necessary for such high-value deposits or withdrawals from banks in a monetary yr, or opening of a present account or money credit score account with a financial institution or put up workplace.

Commenting on the transfer, AKM Global Tax Partner Sandeep Sehgal mentioned this shall deliver in additional transparency to monetary transactions the place banks, put up places of work and co-operative societies can be required to report the transactions of deposits and withdrawals aggregating to Rs 20 lakh or extra in a monetary yr.

“Further, the mandatory condition of obtaining PAN for deposit and even for withdrawals would help the government in tracing the movement of cash in the system. All in all, this would tighten the entire process of suspicious cash deposits and withdrawals with the already present TDS provision u/s 194N under the Income-tax Act, 1961,” Sehgal mentioned.

Currently, PAN and Aadhaar are interchangeable for revenue tax objective.

An assessee wants to say his/her PAN in all communications with the I-T division and whereas getting into into specified monetary transactions.

However, there could be conditions the place an individual getting into into high-value transactions, comparable to buy of overseas foreign money or enormous withdrawal from banks, doesn’t possess a PAN.

The Finance Act, 2019, has supplied for interchangeability of PAN with Aadhaar.

It has been supplied that each one who is required to furnish or quote his PAN beneath the Income Tax Act, and who has not been allotted a PAN however possesses the Aadhaar quantity, might furnish the biometric ID in lieu of PAN.

Nangia & Co LLP Partner Shailesh Kumar mentioned as soon as such individual quotes the PAN will probably be simpler for the tax authorities to trace the transactions.

“The government has constantly been striving to increase its taxpayer base to be able to bring such people under the tax net who may be entering into large transactions but do not hold a PAN,” Kumar mentioned.

It might ultimately turn into troublesome the place an individual tries to keep away from submitting return of revenue, he added.

May 11, 2022