Understanding the Joint Account rules in India
A Joint Account is a Bank Account with more than one holder. Such an account can be a Savings Account, Current Account, Fixed Deposit, Loan Account, etc. For these accounts, questions like 'who is the owner', 'who can withdraw money', and 'can I remove other account holders' are legitimate. Our comprehensive guide on Joint Bank Account rules answers all such questions.
Joint Accounts are like Regular Bank Accounts, except they are operated by more than one account holder. Not every account holder of a Joint Account can deposit and withdraw money, transfer funds, make ATM withdrawals, issue cheques, etc.
You can open a Joint Account like you would open a regular bank account, i.e., fill out the account opening form and complete the Know Your Customer (KYC) process. Simply select the mode of holding as joint. Following are the Joint Bank Account Rules in India per the account mode.
Account holders must establish the purpose of the joint account to decide how the account will be funded. Depending on the account type, not all account holders can operate the account, which also means limitations on deposits.
In 'Either or Survivor' and 'Anyone or Survivor' accounts, joint holders have access to funds without consent from others, regardless of who funds the account.
Whether you are the primary account holder or not, you can choose to close the account at any time. However, in the case of 'Joint', all members must sign the account closing form.
Joint Accounts come with numerous benefits, especially for spouses and business partners looking to manage their expenses jointly. However, there are certain Joint Account rules and regulations that all account holders must follow. You must open joint Accounts only with those whom you trust. All account holders must agree to the stipulated terms and conditions before opening a Joint Bank Account.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.