Opening a bank account

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By Rajkamal Rao 


Go back to Finance: Core Banking in India

The first thing that a returning Indian should consider doing is setting up a savings bank account, preferably jointly held with a spouse.  Doing this is easy and requires nothing more than an application form, an introduction from an existing account holder at the bank, a few passport size photographs [Indian institutions - from gas agencies to your mobile provider love passport size photographs; one of the first things you need to do on arrival is to visit a local photo studio and carry with you dozens of copies of your passport picture] and preferably a PAN (Personal Account Number).  Notice that a PAN is not required for account opening - most bank managers will ask you to submit your PAN once you get it from the Indian tax authorities.

Obtaining the Personal Account Number.  The PAN is similar to the US Social Security number in that it serves as the primary identifier for the Indian government to track tax collection.  Getting a PAN is again easy to do.  In fact, there are hundreds of Indian agents who, for a small fee, will help you file for a PAN and get the PAN card for you.  But if you don’t want to go to an agent, you can obtain a PAN yourself - online - when you are still in the west.  There are really two things that you will need:

Proof of identity (your US passport will do fine);

Proof of address (for US Citizens, the list of documents that provides evidence is unfortunately rather limited - but if you have an India bank account, that will do fine.  Your OCI card or a copy of the certificate of residence in India or Residential permit issued by the State Police Authority is also acceptable).

The name on the above two documents must exactly match, letter by letter.  A "Mahesh Iyer" on the first and a "Mahesh S. Iyer" on the second are no good.

A recent addition to the mix of accepted documents for identification is the Adhaar card.  This may not be a viable option for returning US citizens, however.