Well since the account is not meant for personal use of any particular account holder the type of account must be business or current account.
Therefore to avoid dispute in future its prudent to continue with or open the current account only.
Bank account type for Apartment community
Hi We are from 500 apartment community from Hyderabad, Telangana. As of now we have a current account in Kotak for collecting the maintenance from residents. Recently we were approached by idfc first saying that Saving account can be opened which can give some interest on the money. As a housing society are we allowed to open savings account?
Asked 3 years ago in Property Law
Religion: Hindu
21 Answers
There is no bar for society opening savings account for depositing maintenance collected from flat owners
Dear Sir/Madam,
You are suggested that the you may very well have a saving account which will have lesser complications as compared to current account.
Also please mention under which law or GO states the type of account the housing society can open
Asked 3 years ago
Co-operative housing society has to open current account in the government bank that is district co-op bank of your district city name.
THE HYDERABAD DIST CO-OP.CENTRAL BANK LTD
The said housing society being the legal person can open the said bank account.
It would be governed by housing society act of your state
Refer to the RBI Circular on customer policy.
Yes you can open a society savings account in bank
No, a current account has to be opened.
Bylaws of society can be checked for confirming that which account is best suitable for collecting the maintenance. Savings can also be opened if bylaws allows
District Co operative Society Bank is compulsory for account of Society.
The Reserve Bank of India does not put any restriction on opening savings bank accounts for societies registered under the Societies Registration Act, 1860, while housing co-operative societies, panchayat samitis and different government boards are barred from maintaining one.
When bank is offering than what is the problem. Take letter from bank offering saving account in the name community/ society and without any change in future. The Reserve Bank of India does not put any restriction on opening savings bank accounts for societies.
- As per the Reserve Bank of India guidelines , there is not any restriction on opening savings bank accounts for societies registered under the Societies Registration Act,
- Further the following are eligible to open a Saving Accournt with the bank : -
1, Associations, Societies, educational institutions and Hindu Undivided Family (HUF) and Trusts, so long as the account not used for trading purpose. [Government of India Notification dated November 12, 2009- Rule 2 sub-rule (1) clause (ca) defines a Non-Profit Organization (NPO). NPO means any entity or organization that is registered as a trust or a society under the Societies Registration Act, 1860 or any similar State legislation or a company registered under section 25 of the Companies Act, 1956.(RBI circular/2011- 12/72 DBOD. AML. BC. No. 2 /14 .01.001/2011-12 July 1, 2011)]
2. Primary co-op society which is being financed by the bank.
3. Khadi & Village Industries Board.
4.Agriculture Produce Marketing Committee.
5.Societies registered under the Societies Registration Act.
1. Society /Association does not do any "commercial activity" hence Current Account must never be opened.
2. Savings Account must be opened for all banking activities of Society /Association.
3. Check the constitution and Bye Laws of Society /Association, to have a clear picture.
RBI does not put any restriction on opening savings bank accounts for societies registered under the Societies Registration Act, 1860
Savings Bank (SB) accounts are opened in the bank mainly for saving purpose. Customers cannot open an SB account for business purpose.
The following entities are eligible to open SB accounts in a bank:-
(i) SB Accounts may be opened in the name of Individuals (Resident or Non-Non-Resident)
(ii) Associations, Societies, educational institutions and Hindu Undivided Family (HUF) and Trusts, so long as the account not used for trading purpose. [Government of India Notification dated November 12, 2009- Rule 2 sub-rule (1) clause (ca) defines a Non-Profit Organization (NPO). NPO means any entity or organization that is registered as a trust or a society under the Societies Registration Act, 1860 or any similar State legislation or a company registered under section 25 of the Companies Act, 1956.(RBI circular/2011- 12/72 DBOD. AML. BC. No. 2 /14 .01.001/2011-12 July 1, 2011)]
(iii) Primary co-op society which is being financed by the bank.
(iv) Khadi & Village Industries Board.
(v) Agriculture Produce Marketing Committee.
(vi) Societies registered under the Societies Registration Act.
(vii) Companies registered under companies act which have been licensed by Central Government under the corresponding provision of section 25 Companies Act 1913 and without permission to add the word “Limited” or “Pvt. Limited” to their names.
(viii) Government Departments/bodies/agencies in respect of grants/subsidies released for implementation of various programmes /schemes.
(ix) Institution other than mentioned above and whose entire income is exempt from payment of Income Tax under IT Act.1961
(x) Development of women and children in the rural area (DWCRA).
(xi) Self Help Group. (SHG) registered or unregistered
(xii) Farmers Club- Vikas Volunteer Vahini (VVV)
(xiii) Any other institution permitted by RBI from time to time
Yes .with the permission of Registrar of Coop Societies
Yea you may may open a savings account but you cannot open 2 accounts of the same society.
The society must have decided the type of account to be opened in its byelaws.
KAOAA act doesn't specify but you may open an account which can be savings.
You are not engaged in any business. The money belongs to the society.