Bank Account Rules: There is no legal restriction on an individual customer opening any number of savings accounts, current accounts, or other types of bank accounts in one or more banks in India. But some important things and rules are important to know.

Let us tell you that a person can open many bank accounts in different banks or in the same bank. RBI has not set any rules for this.

No, there is no provision of any kind of punishment or penalty for keeping more than one bank account in India. However, some things should be kept in mind while keeping many bank accounts.

In case of having more than one bank account, you should keep the KYC of each bank account updated. Apart from this, it is also necessary to provide PAN, and Aadhaar address proof to keep any account valid.

If you have more than one bank account, you can manage your income and expenses properly by dividing them separately. Even if there is a technical problem in one account, you can work from the other account, and apart from this, you can avail of the services of different banks.

There are many disadvantages to having more than one bank account. First, you have to track many bank accounts simultaneously. Penalty can also be imposed if the balance in any account is low.

If you have more than one bank account and there is a large amount in these accounts and you also earn interest on it, then it is mandatory for you to declare it while paying tax. TDS can also be levied on annual interest of more than ₹ 10,000.

If you have more than one bank account and you take advantage of government subsidy schemes like PMAY or DBT, then only one account should be linked to it. Taking advantage of DBT from more than one account will be considered a violation of the rules.

If you have more than one bank account, you also have to ensure that transactions continue to happen from all the accounts. If you do not use an account for a long time (usually 12–24 months), the bank declares it inactive. A process has to be completed to activate it again.