Multiple Bank Accounts: If you have more than one bank account then this news is to alert you. In fact, if you have more than one bank account, you may suffer monetary loss. In such a situation, let us know in the news below what the RBI rules say on this.
If you have more than one bank account, then it is very important for you to know that keeping more than one bank account can cause monetary losses, which people often do not pay attention to. If the earning person is a salaried individual, it is better to have a single savings bank account than multiple savings accounts.
Maintaining a bank account is easy and when you file your income tax return, your work becomes easier as most of your banking details are available in a single bank account. But apart from the convenience, there are some monetary benefits too if you have a savings bank account as you will pay bank service charges on debit card AMC, SMS service charges, minimum balance etc.
As per RBI rule, it is better to have a single bank account as it becomes easier to maintain minimum balance and avoid paying bank service charges like debit card AMC, SMS. If a person is salaried, having a single savings account makes it easier for the earning person to file income tax returns.
Possibility of fraud-
Having more than one bank account is likely to mean having a dormant account, which is most prone to fraud. This happens when a salaried person leaves the salary account and changes job from one company to another. In such a case the salary account becomes inactive and as said earlier, such accounts are most prone to fraud.
Threat to CIBIL score-
Having more than one account can cause problems in managing your bank account with the appropriate minimum balance. In such a case, a default may lead to penalty which is directly related to your CIBIL rating.
Multiplication of service charge-
Having a bank account attracts various service charges like SMS alert service charges, debit card AMC, etc. If you have a single bank savings account, you have to make the payment once whereas in case of more than one bank, the service charge in the savings account is doubled.
Stopping your investment-
Having a bank savings account also requires maintaining a minimum balance. If you have multiple banks then there is a possibility of a large amount getting stuck in your savings bank account. These days, private banks are asking for a minimum balance of Rs 20,000 and if you have three such bank accounts in three different banks, your Rs 40,000 will get stuck in maintaining the minimum balance of the two additional bank savings accounts and investments. will not be able to do.
This additional Rs 40,000 can be used for investment purpose and a return of 8 per cent can be obtained on it as debt funds attract at least 8 per cent in short term investments. But, one will get around 4-05 per cent in bank savings deposits, which is almost half of what one would earn through investing in debt funds.
Income tax fraud-
There is tax exemption on interest up to Rs 10,000 in bank savings account and hence TDS is deducted. So, unless you are getting interest of Rs 10,000 in your bank savings account, your bank will not deduct TDS, it may happen that your bank does not deduct TDS like your single bank account.
Rs 10,000 does not earn interest in a financial year, but after adding the entire interest in all your savings accounts, it may cross Rs 10,000, making you liable for TDS deduction. In such a situation, you will have to give this information to the Income Tax Department during ITR filing. Failure to do so will amount to income tax fraud, which was done unknowingly.
