A Comprehensive Handbook for Opening a Bank Account and the Necessary Steps

Comprehensive Handbook - Bank Account - Necessary Steps - Bank Account and the Necessary Steps - taxscan

There are several reasons why you should possess a bank account. It provides a safe place to park your money and save for the future. Moreover, a bank account acts as an identity and address proof. Additionally, you need a bank account to receive government benefits, including subsidies and allowances.

Thanks to innovative online financial institutions like Kotak Mahindra Bank, opening a zero-balance Savings Account is easier than ever.

Explore the steps required to open a bank account in India. You will also learn about the five most common types of bank accounts offered by Indian financial institutions.

Open a Bank Account in India – The Ways

You can open a bank account in two ways: offline and online. The former process is more complicated than the latter. Let’s understand each process in detail in the following paragraphs:


To open a bank account offline, you need to find a bank branch near your residence or office. After finding the bank, you must visit them during office hours (between 10 AM and 3:30 PM). The customer support officer will provide you with an account opening form.

You must fill it out carefully, attach your KYC (Know Your Customer) documents, and submit it to the officer. The bank will verify your details and check your application before sending the welcome letter and account details to your registered postal address.


The digital savings account opening process is much easier than the offline mode. All you need to do is open the bank’s online platform and complete the account opening formalities online. This includes everything from filling out the application form to document verification.

Although many financial institutions offer online bank account opening facilities nowadays, not all offer similar benefits. The next section discusses the types of bank accounts you may open in India.

Types of Bank Accounts You Can Open in India

The following are the five most common types of bank accounts offered by Indian financial institutions:

  • Regular Savings Account

A regular Savings Account, such as the Kotak EDGE Savings Account, requires a minimum or average monthly balance. It provides features like a free debit card, free (up to a limit) ATM and branch transactions, attractive interest rates, and many more.

  • Zero Balance Savings Account

Opening a zero-balance Savings Account makes sense when you do not want to maintain an average or minimum balance. However, the features of such an account might be a little more subdued than those of a regular Savings Account. 

  • Current Account

Current accounts are typically opened by businesspersons, entrepreneurs, and traders. Unlike a normal Savings Account, a current account does not impose any limits on daily transactions. Moreover, you can apply for an overdraft facility to get more money than your account contains.

  • Fixed Deposit Account

A fixed deposit account offers higher interest rates than regular or zero-balance Savings Accounts. However, there is a mandatory lock-in period for these accounts. The mandatory lock-in period often ranges between seven (7) days and ten (10) years.

  • Recurring Deposit Account

A recurring deposit account is much like a fixed deposit account, except that you need to deposit a fixed amount every month for the duration of the RD. The duration of this account usually ranges between six (6) months and ten (10) years.

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Who Can Open a Bank Account in India – Eligibility Criteria

The following are the eligibility criteria for opening a regular or zero-balance account in India: 

1. Status – Any resident Indian, Hindu Undivided Family (HUF), or foreign national living in India can open a bank account.

2. Identity Proof – Any government-issued identity card, such as a PAN card, Aadhaar card, Voter Identity card, passport, driving license, or any other similar document, acts as identity proof.

3. Address Proof – Any government-issued card containing your address will act as address proof. Some examples include a passport, Aadhaar card, driving license, etc.

4. Photograph – If you plan to open a bank account offline, you need to submit 1-2 copies of passport-size photographs and the application form. However, the bank will capture your live photo from within their application or platform if you apply online.

5. Initial Deposit – While you do not need to make any initial deposit to open a zero-balance account, you will need to make one in the case of a regular Savings Account.


Now that you know how to open a regular or zero-balance account online or offline, open an account to experience unparalleled features. If you want to take your convenience one step ahead, check Kotak’s feature-rich EDGE Savings Account. 

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