Author: Ankur Jhavery

Whether you are consolidating your finances, switching to a better bank, or simply closing a dormant account, knowing how to properly close a bank account is important. An improperly closed account can lead to minimum balance charges piling up, negative CIBIL entries, or even legal complications. Here is the complete step-by-step process to close a bank account in India.

Before You Close: Checklist

Before initiating the closure process, make sure you have completed these essential steps:

• Transfer your balance: Move all funds to another account.
• Update auto-debits: Switch all standing instructions, SIPs, EMI debits, insurance premiums, and subscription payments to your other account.
• Update direct credits: Inform your employer, clients, or anyone who deposits money into this account about your new account details.
• Unlink from UPI: Remove this account from all UPI apps (GPay, PhonePe, Paytm).
• Cancel the debit card: Either surrender the card at the branch or destroy it after account closure.
• Deactivate net banking and mobile banking: Ensure no digital access remains linked to this account.
• Clear all dues: Pay any outstanding charges, overdraft amounts, or pending fees.
• Collect your FD/RD maturity: If you have any fixed or recurring deposits linked to this account, close or transfer them first.

Step-by-Step Process to Close a Bank Account

Step 1: Visit Your Home Branch

Account closure is typically done at the branch where the account was opened (home branch). Some banks now allow closure at any branch, but the home branch is the safest bet. Carry the following:

• Account closure form (available at the branch or downloadable from the bank’s website).
• Passbook.
• All unused cheque leaves and cheque books.
• Debit card(s) associated with the account.
• Original ID proof (Aadhaar or PAN).

Step 2: Fill the Account Closure Form

The account closure form requires basic details — your name, account number, reason for closure, and the mode of receiving the remaining balance (cash, demand draft, or transfer to another account). If the balance is small (usually below Rs 20,000), you can receive it in cash. For larger amounts, opt for a transfer or DD.

Step 3: Submit Unused Cheques and Debit Card

Return all unused cheque leaves and your debit card to the bank. The bank will cancel them. If you have lost your cheque book or card, you may need to write a declaration or indemnity letter.

Step 4: Request an Account Closure Acknowledgement

This is crucial. Always get a written acknowledgement or receipt confirming that your account closure request has been submitted. This protects you in case any charges are levied after closure.

Step 5: Receive Final Settlement

The bank will process the closure within 5-15 working days. Any remaining balance, minus applicable account closure charges, will be transferred to your specified account or given as a DD.

Account Closure Charges

Banks may charge a fee for closing an account, especially if it is closed within a year of opening:

• Within 14 days of opening: No charges (as per RBI guidelines).
• Within 1 year of opening: Rs 200-500 plus GST (varies by bank).
• After 1 year: Most banks charge nil or minimal fees.

Can You Close a Bank Account Online?

Most banks in India still require a branch visit for account closure. However, some digital-first banks and neo-banks allow online closure through their app. Check with your bank. Even for banks that offer online closure requests, you may still need to visit the branch for final formalities like surrendering cheque books and debit cards.

What Happens to a Dormant Account?

If you stop using an account without formally closing it, here is what happens:

• After 12 months of no transactions: The account becomes “inactive.”
• After 24 months: It becomes “dormant.”
• Minimum balance charges continue: The bank keeps deducting charges, potentially driving your balance to zero or negative.
• After 10 years of inactivity: Unclaimed balances are transferred to the RBI’s DEAF (Depositor Education and Awareness Fund).

This is why it is important to formally close accounts you do not use, rather than just abandoning them.

Special Cases

• Joint accounts: All account holders must sign the closure form and be present (or provide written consent).
• NRI accounts: Can be closed by sending a signed request letter with attested documents to the branch.
• Deceased account holder: The nominee or legal heir can close the account with a death certificate, succession certificate, and their own KYC documents.
• Salary account: If you have left the employer, the account may revert to a regular savings account with minimum balance requirements. Close it if you do not need it.

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Fewer accounts mean simpler finances. Once you consolidate, use Bachatt to manage your savings and investments from one place. Designed for India’s self-employed community, Bachatt helps you track, save, and grow your money efficiently. Download the Bachatt app today.

You want a credit card, but every bank says you need a credit history to get one. And you cannot build a credit history without having credit. It is the classic chicken-and-egg problem. But it is completely solvable. Whether you are a young professional just starting out or a self-employed individual who has always dealt in cash, this guide shows you exactly how to get your first credit card with no credit history.

Why Do You Need a Credit Card?

A credit card is not just for spending — it is your ticket to building a credit history. A good credit history leads to:

• Better loan approval chances and lower interest rates.
• Higher loan amounts when you need them for business or personal needs.
• Access to premium financial products and services.
• Emergency financial backup when cash is not available.

Option 1: Get a Secured Credit Card

A secured credit card is the easiest and most reliable way to get your first credit card. Here is how it works:

• You deposit a Fixed Deposit (FD) with the bank — typically Rs 15,000 to Rs 2,00,000.
• The bank issues a credit card with a limit of 75-90% of your FD amount.
• Your FD earns interest, and you use the credit card normally.
• After 6-12 months of responsible use, many banks upgrade you to a regular (unsecured) credit card.

Popular secured credit card options:

• HDFC MoneyBack+ Secured: Available against an FD as low as Rs 15,000.
• ICICI Bank Instant Platinum: Issued against an FD, instant approval.
• Axis Bank Insta Easy: Credit card against FD with no income proof needed.
• SBI Unnati Card: No annual fee for the first 4 years, available without income proof.

Option 2: Apply for a Student or Entry-Level Card

Some banks offer basic credit cards designed for people with no or limited credit history:

• Low credit limits: Rs 10,000-50,000 to start with.
• Minimal requirements: Basic income proof and KYC documents.
• Lifetime free or low annual fee: Banks use these cards to acquire new customers.

These cards may not have the best rewards, but they serve the primary purpose — building your credit history.

Option 3: Become an Add-On Card Holder

If a family member (parent, spouse, sibling) has a credit card with a good track record, you can be added as a supplementary or add-on card holder. While this primarily builds the primary holder’s credit history, some banks also report add-on card usage to credit bureaus, which can help you build your own history.

Option 4: Start with a Digital or Fintech Card

Several fintech companies in India offer credit lines or credit cards to people with thin or no credit files:

• Slice: Offers credit lines starting from Rs 2,000 with minimal documentation.
• OneCard: Metal credit card with a simplified application process.
• Fi Money: Offers credit products linked to your savings behaviour.

These are often easier to get approved for, but watch out for higher interest rates and fees.

Step-by-Step: Applying for Your First Credit Card

1. Check your CIBIL score: Even with no history, check if there is any score. A score of -1 or NH (No History) is expected.
2. Choose the right card type: Secured card if you have FD money, entry-level card if you have income proof.
3. Gather documents: PAN card, Aadhaar, income proof (ITR for self-employed, salary slips for salaried), and bank statements.
4. Apply online: Visit the bank’s website or app and complete the application.
5. Complete KYC: Do e-KYC or Video KYC as prompted.
6. Wait for approval: Secured cards are usually approved in 1-3 days. Regular cards may take 7-15 days.

How to Build Credit History Fast

Once you get your first credit card, use it wisely to build a strong credit history:

• Use it for small, regular purchases: Groceries, fuel, phone recharges.
• Pay the full bill every month: Never carry a balance forward. Credit card interest rates are 36-42% per year.
• Keep utilization below 30%: If your limit is Rs 50,000, keep outstanding below Rs 15,000.
• Never miss a payment: Even one missed payment can damage your new credit history.
• Do not close the card: Keep your first card open to build a long credit history.

Tips for Self-Employed Applicants

Getting a credit card is harder when you are self-employed because income is harder to document. To improve your chances:

• File your ITR for at least 2 years — this is your primary income proof.
• Maintain a healthy average balance in your bank account.
• Start with a secured credit card — no income proof needed.
• Apply at the bank where you have your primary savings or current account.

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A credit card is a financial tool — not a spending license. Use it wisely to build credit while also building your savings. Bachatt helps India’s self-employed save smartly, invest wisely, and create financial security. Download the Bachatt app and start your financial growth journey.

UPI (Unified Payments Interface) has transformed how India pays. From buying chai at a roadside stall to paying rent, UPI makes instant money transfers free and effortless. In 2024, India processed over 14 billion UPI transactions per month. If you are self-employed, UPI is not just convenient — it is essential for receiving payments from customers. Here is how to set it up.

What Is UPI?

UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI). It allows you to instantly send and receive money using just a mobile phone. No need to remember account numbers or IFSC codes — you can pay using a simple UPI ID (like yourname@upi) or by scanning a QR code.

Key features:

• Free: No charges for person-to-person transactions.
• Instant: Money is transferred in seconds, 24/7, including weekends and holidays.
• Secure: Protected by your device lock, UPI PIN, and bank-level encryption.
• Versatile: Pay bills, shop online, transfer to any bank account, and receive payments.

What You Need Before Starting

• Smartphone: Android or iPhone with internet access.
• Bank account: A savings or current account with any Indian bank.
• Registered mobile number: The same number that is registered with your bank.
• Debit card: Needed during the initial setup for authentication (not all apps require this).

Step-by-Step: Setting Up UPI

Step 1: Download a UPI App

Choose a UPI app and download it from Google Play Store or Apple App Store. Popular options include:

• Google Pay (GPay): Clean interface, widely accepted, good for personal use.
• PhonePe: Feature-rich with bill payments, investments, and insurance options.
• Paytm: Offers wallet + UPI, widely used by merchants.
• BHIM: Government-backed, simple and straightforward.
• Your bank’s app: SBI YONO Pay, iMobile Pay, etc. — direct integration with your bank.

Step 2: Register with Your Mobile Number

Open the app and register using the mobile number linked to your bank account. The app will send a verification SMS automatically. Make sure you have the SIM card of the registered number in your phone.

Step 3: Link Your Bank Account

After verification, the app will detect banks linked to your mobile number. Select your bank and account. The app communicates with your bank’s server to verify your account details. If your mobile number is properly registered with the bank, this step is automatic.

Step 4: Create Your UPI PIN

You need to set a 4 or 6-digit UPI PIN to authorize transactions. Here is how:

1. Select the linked bank account.
2. Tap on “Set UPI PIN.”
3. Enter the last 6 digits of your debit card number and expiry date.
4. You will receive an OTP from your bank.
5. Enter the OTP and create your UPI PIN.

Important: Your UPI PIN is like your ATM PIN. Never share it with anyone. No genuine bank or company representative will ever ask for your UPI PIN.

Step 5: Create Your UPI ID

Your UPI ID (also called VPA — Virtual Payment Address) is your unique identifier for receiving payments. It looks like yourname@bankname or mobilenumber@ybl. Most apps assign a default UPI ID, but you can create a custom one for easy sharing.

How to Make Your First UPI Payment

1. Open your UPI app and tap “Pay” or “Send Money.”
2. Enter the recipient’s UPI ID, mobile number, or scan their QR code.
3. Enter the amount.
4. Add a note (optional) and tap “Pay.”
5. Enter your UPI PIN to authorize the transaction.
6. You will see a confirmation screen with the transaction status.

UPI for Self-Employed and Small Business Owners

UPI is a game-changer for self-employed individuals:

• Accept payments easily: Print your UPI QR code and display it at your shop or share it with clients.
• No POS machine needed: Save on rental and transaction charges of card-swiping machines.
• Track transactions: Every payment is recorded digitally, making accounting easier.
• Multiple accounts: Link multiple bank accounts and choose which one to use for each transaction.

Safety Tips for UPI Users

• Never share your UPI PIN with anyone — not even bank officials.
• You do NOT need to enter your PIN to receive money. If someone asks you to enter your PIN to “receive” payment, it is a scam.
• Verify the recipient details before sending large amounts.
• Enable app lock (fingerprint or face ID) for your UPI app.
• If your phone is lost, immediately call your bank to deregister your UPI.

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Need funds for a medical emergency, business expansion, or a family wedding? A personal loan can provide quick access to money without pledging any collateral. And the best part? You can apply for one entirely online. Whether you are salaried or self-employed, this guide walks you through the complete process of applying for a personal loan online in India.

What Is a Personal Loan?

A personal loan is an unsecured loan — meaning you do not need to provide any asset as security. Banks and NBFCs lend you a fixed amount that you repay in monthly instalments (EMIs) over a chosen tenure, typically 1 to 5 years. Interest rates for personal loans generally range from 10% to 24%, depending on your credit profile and the lender.

Eligibility Criteria

Before applying, check if you meet the basic eligibility requirements:

• Age: 21-60 years (varies by lender).
• Income: Minimum monthly income of Rs 15,000-25,000 for salaried individuals. Self-employed individuals need to show business income via ITR.
• CIBIL Score: Most lenders prefer 700 and above. Some digital lenders accept 650+.
• Employment: At least 1-2 years of work experience for salaried, or 2-3 years of business existence for self-employed.
• Documents: PAN card, Aadhaar, income proof, and bank statements.

Documents Required

Keep digital copies of these documents ready:

• Identity proof: PAN card and Aadhaar card.
• Address proof: Aadhaar, utility bills, or rent agreement.
• Income proof (Salaried): Last 3 months’ salary slips and latest Form 16.
• Income proof (Self-employed): Last 2 years’ ITR, profit and loss statement, and balance sheet.
• Bank statements: Last 6-12 months’ bank statements of your primary account.
• Business proof (Self-employed): GST registration, shop establishment certificate, or business licence.

Step-by-Step Process to Apply Online

Step 1: Compare Lenders

Do not jump at the first offer. Compare interest rates, processing fees, prepayment charges, and loan tenure across multiple banks and NBFCs. Use comparison websites like Paisabazaar or BankBazaar to see personalized offers based on your profile.

Step 2: Check Your Pre-Approved Offers

Many banks offer pre-approved personal loans to existing customers with good repayment history. Check your bank’s mobile app — SBI YONO, HDFC Bank, ICICI Bank, and others frequently push pre-approved offers with lower interest rates and minimal documentation.

Step 3: Fill the Online Application

Visit the lender’s website or app and fill in the loan application form. You will need to provide personal details, employment information, loan amount, and preferred tenure. Be accurate — discrepancies can delay or derail your application.

Step 4: Upload Documents

Upload the required documents as clear photographs or scanned PDFs. Ensure all documents are current and legible.

Step 5: E-KYC Verification

Complete the identity verification through Aadhaar OTP or Video KYC. This is instant and replaces the need for a branch visit.

Step 6: Loan Approval and Offer

The lender reviews your application, checks your CIBIL score, verifies your income, and makes a decision. For pre-approved offers, this can be instant. For new applications, it may take 24-72 hours. You will receive an offer with the approved amount, interest rate, tenure, and EMI details.

Step 7: Accept and Get Disbursement

Review the offer carefully — check the interest rate, processing fee, foreclosure charges, and total repayment amount. If satisfied, accept the offer digitally. The loan amount is disbursed to your bank account, often within the same day.

Tips for Self-Employed Applicants

• File your ITR regularly: This is the most critical document for self-employed loan applicants. Two years of ITR filing significantly improves your chances.
• Maintain healthy bank statements: Lenders analyse your bank transactions. Regular deposits, low bounce rates, and healthy average balances work in your favour.
• Keep your CIBIL score high: Since self-employed income is harder to verify, lenders rely more heavily on your credit score.
• Consider NBFCs: If traditional banks reject you, NBFCs like Bajaj Finserv, Tata Capital, and Fullerton India are often more flexible with self-employed applicants.

Common Mistakes to Avoid

1. Borrowing more than you need: A higher loan means higher EMIs and more interest paid.
2. Ignoring the processing fee: Some lenders charge 1-3% as processing fee, which is deducted from the loan amount.
3. Not reading the fine print: Check foreclosure charges, late payment penalties, and whether the rate is fixed or floating.
4. Applying to multiple lenders simultaneously: Each application triggers a hard enquiry on your CIBIL report, which lowers your score.

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A CIBIL score of 600 puts you in a tough spot. Most banks will either reject your loan application or offer you loans at painfully high interest rates. But here is the good news — improving your CIBIL score from 600 to 750 is absolutely possible. It requires patience, discipline, and a clear action plan. This guide will show you exactly how to do it.

Why Does Your Score Matter So Much?

The difference between a 600 and 750 CIBIL score can mean:

• Interest rate difference of 3-6% on personal loans. On a Rs 5 lakh loan for 3 years, this translates to Rs 45,000-90,000 in extra interest payments.
• Loan approval vs rejection. Most banks have a minimum cutoff of 700-725 for personal loans.
• Credit card eligibility. Premium credit cards with good rewards require scores above 720-750.

Step 1: Get Your CIBIL Report and Find the Problems

Before fixing your score, you need to understand what is dragging it down. Get your free CIBIL report from cibil.com and look for:

• Late payments: Even one payment made 30+ days late can hurt your score significantly.
• High credit utilization: Using more than 30% of your credit card limit is a red flag.
• Too many hard enquiries: Multiple loan applications in a short period signal desperation to lenders.
• Errors: Incorrect information — like a loan showing as unpaid when you have actually cleared it — can unfairly lower your score.
• Settled or written-off accounts: These are worse than late payments and stay on your report for years.

Step 2: Pay All Your Bills on Time — Every Single Month

Payment history is the single most important factor in your CIBIL score, accounting for about 35% of it. Here is what to do:

• Set up auto-pay for all EMIs and credit card minimum payments.
• Pay credit card bills in full before the due date — not just the minimum amount.
• If you cannot pay the full amount, at least pay the minimum due to avoid a “Days Past Due” (DPD) entry on your report.
• Set calendar reminders for every payment date.

Six months of consistent on-time payments can start showing improvement in your score.

Step 3: Reduce Your Credit Card Utilization Below 30%

Credit utilization ratio is the percentage of your credit limit that you are using. If your credit limit is Rs 1 lakh and your outstanding balance is Rs 60,000, your utilization is 60% — far too high.

How to bring it down:

• Pay off as much outstanding balance as possible.
• Request a credit limit increase (this immediately lowers your utilization ratio without changing your spending).
• Make multiple payments within a billing cycle to keep the reported balance low.
• Spread expenses across multiple cards if you have them.

Step 4: Stop Applying for New Credit

Every time you apply for a loan or credit card, the lender makes a “hard enquiry” on your CIBIL report. Too many enquiries in a short period reduce your score by 5-10 points each and signal financial distress.

Action plan:

• Do not apply for any new loans or credit cards for at least 6-12 months.
• If you need to compare loan offers, use platforms that do “soft checks” that do not affect your score.
• When you do apply eventually, limit it to 1-2 carefully selected options.

Step 5: Dispute Errors on Your Report

Studies show that a significant percentage of credit reports contain errors. Check your report carefully for:

• Loans or credit cards you never took (possible fraud or bank error).
• Incorrect balances or payment statuses.
• Duplicate entries for the same account.
• Accounts showing as “settled” when you paid the full amount.

To dispute errors, log in to cibil.com, go to “Dispute Centre,” and raise a dispute with supporting documents. CIBIL must investigate and respond within 30 days.

Step 6: Keep Old Credit Accounts Open

The age of your credit history matters. Older accounts show lenders that you have a long track record. Do not close old credit cards even if you are not using them. A zero-balance old card with a high limit actually helps your score by improving your average account age and lowering your overall utilization ratio.

Step 7: Maintain a Healthy Credit Mix

Having a mix of secured loans (home loan, car loan) and unsecured credit (credit cards, personal loans) shows lenders you can handle different types of credit. However, do not take a loan just to improve your credit mix — this step is about maintaining what you already have.

Realistic Timeline: 600 to 750

Here is a practical timeline:

• Month 1-3: Clear overdue payments, dispute errors, reduce credit utilization. Score improvement: 20-40 points.
• Month 4-6: Consistent on-time payments start reflecting. Score improvement: 30-50 points.
• Month 7-12: Credit history lengthens, hard enquiries age. Score improvement: 20-40 points.

Total estimated improvement: 70-130 points over 12-18 months. Results vary based on the severity of negative items on your report.

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Your CIBIL score is a three-digit number between 300 and 900 that tells lenders how creditworthy you are. A high score means banks trust you with loans and credit cards at better interest rates. A low score means higher rates or outright rejection. Whether you are planning to apply for a personal loan, home loan, or your first credit card, knowing your CIBIL score is the essential first step. The good news? You can check it for free.

What Is a CIBIL Score?

CIBIL (Credit Information Bureau India Limited), now known as TransUnion CIBIL, maintains credit records of over 60 crore individuals in India. Your CIBIL score is calculated based on your credit history — how you have borrowed and repaid money in the past.

Here is what the score ranges mean:

• 750-900: Excellent. You will get the best loan rates and quick approvals.
• 700-749: Good. Most lenders will approve your applications.
• 650-699: Fair. You may get loans but at higher interest rates.
• Below 650: Poor. Loan approval is difficult. You need to work on improving it.
• -1 or 0: No credit history. You have never taken a loan or credit card.

Method 1: Check CIBIL Score on the Official Website

The most reliable way to check your score is directly from CIBIL’s website.

1. Visit www.cibil.com (the official TransUnion CIBIL website).
2. Click on “Get Your CIBIL Score” — look for the free option.
3. Sign up with your full name, email, mobile number, and PAN card or Aadhaar number.
4. Create a password for your CIBIL account.
5. Answer identity verification questions (these are based on your credit history — like which bank you have a loan with).
6. Once verified, your CIBIL score and credit report will be displayed.

You are entitled to one free CIBIL report per year from the official website. For more frequent checks, you need a paid subscription.

Method 2: Check Through Your Bank’s App

Many banks now show your CIBIL score for free within their mobile banking app or net banking portal. Here are some popular ones:

• SBI YONO: Check under the “Loans” or “Credit Score” section.
• HDFC Bank: Available in the mobile app under financial tools.
• ICICI Bank: iMobile app shows your score.
• Axis Bank: Available in the Axis Mobile app.
• Kotak Mahindra Bank: Check in the Kotak 811 app.

The score shown by banks is updated regularly and is free to check as many times as you want.

Method 3: Check via Third-Party Platforms

Several fintech platforms offer free CIBIL score checks:

• Paytm: Check your score in the Paytm app under “Loans & Credit Score.”
• BankBazaar: Offers a free credit score with a detailed report.
• Paisabazaar: Free credit score check with personalized loan recommendations.
• CreditMantri: Free score along with credit health analysis.

Important caution: While these platforms are generally safe, they often use your data to recommend and sell financial products. Be mindful of the permissions you grant and the offers you click on.

Understanding Your CIBIL Report

Your CIBIL report contains more than just the score. It includes:

• Personal information: Name, date of birth, PAN, address, and contact details.
• Account information: Details of all your loans, credit cards, and credit accounts — including sanctioned amount, current balance, and repayment history.
• Enquiry information: A record of every time a lender has checked your credit report (this happens when you apply for a loan or credit card).
• Payment history: Month-by-month record of whether you paid your EMIs and credit card bills on time.

Does Checking Your Own Score Affect It?

No. When you check your own CIBIL score, it is called a “soft enquiry” and does not affect your score. Only “hard enquiries” — when a lender checks your report after you apply for credit — can temporarily lower your score. So check your score as often as you want without worry.

What to Do After Checking Your Score

• Score above 750: You are in great shape. Apply for loans or credit cards with confidence.
• Score between 650-750: Room for improvement. Pay bills on time and reduce credit card usage.
• Score below 650: Do not panic. Focus on clearing any overdue payments, reducing outstanding debt, and avoiding new credit applications for a few months.
• No score (-1): Consider getting a secured credit card or a small personal loan to build your credit history.

Why Self-Employed Individuals Must Monitor Their Score

As a self-employed person, getting loans can already be harder due to irregular income documentation. A strong CIBIL score becomes even more critical because it is one of the few standardized ways lenders evaluate your creditworthiness. Check your score at least once a quarter to stay prepared.

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Linking your Aadhaar card to your bank account is no longer optional — it is a necessity for accessing government subsidies, Direct Benefit Transfer (DBT) payments, and seamless KYC verification. Whether you receive LPG subsidies, PM-Kisan payments, or any other government benefit, your Aadhaar-bank linking ensures the money lands directly in your account. Here is a complete guide on how to do it.

Why Link Aadhaar to Your Bank Account?

• Receive government subsidies: LPG subsidy, PM-Kisan, PM Awas Yojana, and other DBT payments require Aadhaar-bank linking.
• Simplified KYC: Aadhaar-based e-KYC makes opening new accounts and services faster.
• NPCI mapping: Your Aadhaar gets mapped to one bank account via the National Payments Corporation of India (NPCI), enabling Aadhaar-based payment systems like AePS.
• Income tax compliance: The government uses Aadhaar-bank linking to track financial transactions and prevent tax evasion.

Method 1: Link Aadhaar via Net Banking

1. Log in to your bank’s internet banking portal.
2. Navigate to the “Profile” or “Account Settings” section.
3. Look for “Aadhaar Linking” or “Update Aadhaar” option.
4. Enter your 12-digit Aadhaar number.
5. Verify with an OTP sent to your Aadhaar-linked mobile number.
6. Submit the request. You will receive a confirmation message within 24-48 hours.

Method 2: Link Aadhaar via Mobile Banking App

1. Open your bank’s mobile banking app (SBI YONO, iMobile, etc.).
2. Go to “My Account” or “Profile” settings.
3. Select “Link Aadhaar” or “Aadhaar Seeding.”
4. Enter your Aadhaar number and verify via OTP.
5. The linking is usually instant or takes a few hours.

Method 3: Link Aadhaar via ATM

1. Visit an ATM of your bank.
2. Insert your debit card and enter your PIN.
3. Select “Services” or “Aadhaar Registration.”
4. Enter your 12-digit Aadhaar number.
5. Confirm the details and submit.
6. You will receive an SMS confirmation once the linking is done.

Note: Not all bank ATMs support this feature. SBI, Bank of Baroda, and a few other banks offer this facility.

Method 4: Link Aadhaar by Visiting the Bank Branch

1. Visit your nearest bank branch with your original Aadhaar card and a photocopy.
2. Fill out the Aadhaar linking form provided by the bank.
3. Submit the form along with the Aadhaar photocopy.
4. The bank staff will process your request. It typically takes 2-5 working days.

This method is recommended if you face issues with online methods or if your mobile number is not linked to Aadhaar.

Method 5: Link Aadhaar via SMS (Select Banks)

Some banks like SBI allow Aadhaar linking via SMS. Send an SMS in the following format from your registered mobile number:

UID [space] Aadhaar Number [space] Account Number

Send this to the bank’s designated number (for SBI, it is 567676). Check your bank’s website for the exact format and number.

How to Check If Your Aadhaar Is Linked

After submitting the linking request, here is how you can verify:

• Call your bank’s customer care: Ask them to confirm if your Aadhaar is linked to your account.
• Check via UIDAI website: Visit resident.uidai.gov.in and check your Aadhaar authentication history.
• Check via net banking: Your bank’s profile section will show the linked Aadhaar status.
• Dial *99*99#: This USSD code works on any phone and lets you check the Aadhaar-bank linking status through NPCI.

Common Problems and Solutions

• Mobile number mismatch: If your Aadhaar-linked mobile number is different from your bank-registered number, OTP verification will fail. Update your mobile number in Aadhaar first by visiting an Aadhaar centre.
• Name mismatch: If the name in your Aadhaar differs from your bank records (spelling variations, initials), the linking may fail. Get either corrected to match the other.
• Multiple accounts: You can link Aadhaar to multiple bank accounts, but only one account can be your primary account for receiving DBT payments (via NPCI mapping).
• Technical errors: If the online method fails, wait for a day and try again, or visit the branch.

Important Points for Self-Employed Individuals

If you are self-employed and have multiple bank accounts — perhaps a savings account, a current account, and accounts in different banks — link your Aadhaar to all of them. However, set your primary savings account as the NPCI-mapped account for receiving any government benefits. This ensures subsidies and DBT payments reach the right account.

Manage Your Banking Better with Bachatt

Keeping track of multiple bank accounts, Aadhaar linking, and financial documents can be overwhelming. Bachatt simplifies your financial life by helping you manage your savings, track investments, and stay on top of your money — all in one app. Download Bachatt today and streamline your finances.

Gone are the days when opening a savings account meant standing in long bank queues, filling out lengthy paper forms, and making multiple branch visits. Today, you can open a savings account online in just 10-15 minutes from the comfort of your home or shop. Whether you are a shopkeeper, freelancer, or self-employed professional, having a savings account is the first step towards managing your money better.

Why Open a Savings Account?

A savings account is your financial starting point. It provides a safe place to keep your money, earns you basic interest (typically 2.5-4% per year), and gives you access to essential banking services like UPI, debit cards, and online transfers. For self-employed individuals, separating personal savings from business income is critical for better financial management.

Documents You Need

Before you start the online application, keep these documents ready:

• Aadhaar Card: Your 12-digit Aadhaar number linked to your mobile number for e-KYC verification.
• PAN Card: Required for KYC compliance and tax reporting.
• Mobile Number: Must be linked to your Aadhaar for OTP-based verification.
• Email Address: For receiving account-related communications.
• Passport-size Photograph: A digital copy or selfie, depending on the bank.

Step-by-Step Process to Open a Savings Account Online

Step 1: Choose the Right Bank

Compare banks based on minimum balance requirements, interest rates, digital banking features, and branch/ATM network. If you are self-employed with irregular income, look for zero-balance or low-balance accounts. Some popular options include SBI, HDFC Bank, Kotak Mahindra Bank, and various small finance banks.

Step 2: Visit the Bank’s Website or App

Go to the official website of your chosen bank or download their mobile app. Look for the “Open Account” or “Apply Now” section. Most banks have a dedicated page for online account opening.

Step 3: Fill in Personal Details

Enter your full name (as per Aadhaar), date of birth, gender, mobile number, email address, and residential address. Make sure all details match your Aadhaar exactly to avoid rejection.

Step 4: Complete Video KYC or e-KYC

Banks offer two options for identity verification:

• e-KYC via Aadhaar OTP: The bank verifies your identity using your Aadhaar-linked mobile number. An OTP is sent, and your details are pulled from the UIDAI database. This is the fastest method.
• Video KYC: A bank representative connects with you via video call. You need to show your original Aadhaar and PAN during the call. This method allows full-KYC without visiting a branch.

Step 5: Upload Documents

Upload scanned copies or clear photographs of your Aadhaar card (front and back), PAN card, and a recent photograph. Some banks may ask for an address proof if your current address differs from your Aadhaar address.

Step 6: Make Your Initial Deposit

Some banks require an initial deposit to activate the account. This can be done via UPI, net banking, or debit card from your existing account. Zero-balance accounts skip this step entirely.

Step 7: Receive Your Account Details

Once verified, you will receive your account number, customer ID, and IFSC code via SMS and email. Your debit card and welcome kit will be delivered to your registered address within 5-7 business days.

Best Banks for Online Account Opening in 2025

• Kotak 811: Zero-balance digital account with instant activation. Great app interface.
• SBI YONO: India’s largest bank with an extensive ATM network. Digital account opening via YONO app.
• HDFC Bank: Reliable digital banking with strong customer service.
• Fi Money / Jupiter: Neo-banks offering modern digital-first savings accounts with smart features.
• Airtel Payments Bank: Ideal for those who want a simple account linked to their Airtel number.

Tips for Self-Employed Account Holders

• Maintain minimum balance: Falling below the minimum balance results in charges of Rs 100-600 per quarter. Opt for zero-balance accounts if your income is irregular.
• Separate business and personal accounts: Keep your business transactions in a separate current account for cleaner tax filing.
• Enable SMS and email alerts: Stay on top of every transaction for better financial tracking.
• Link your account to UPI: Essential for receiving payments from customers digitally.

Common Mistakes to Avoid

1. Entering a name that does not match your Aadhaar — this causes instant rejection.
2. Using a mobile number not linked to Aadhaar — e-KYC will fail.
3. Not reading the minimum balance and fee structure — surprise charges can eat into your savings.
4. Opening too many accounts — it becomes hard to maintain minimum balances in all of them.

Start Your Savings Journey with Bachatt

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How to Teach Your Kids About Saving and Investing

Financial literacy is one of the most valuable life skills you can give your children, yet it is rarely taught in schools. Children who learn about money management early grow up to be financially responsible adults. As a parent — especially a self-employed one — you understand the value of money better than most. Pass that wisdom on to your kids.

Here is an age-appropriate guide to teaching your children about saving and investing.

Why Start Early?

• Habits form young: Financial habits established in childhood tend to persist into adulthood.
• Compound effect of knowledge: The earlier children understand money, the better financial decisions they make throughout life.
• Prevents future debt traps: Children who understand savings and delayed gratification are less likely to fall into consumer debt.
• Builds confidence: Financial knowledge empowers children to make independent decisions.

Ages 3-6: Introduction to Money

At this age, children are curious about everything. Use simple, concrete concepts:

Lessons to Teach:

• Money is used to buy things: When shopping, show them that you exchange money for goods.
• Coins and notes have different values: Play sorting games with coins.
• You have to earn money: Explain in simple terms that mama/papa works to earn money.

Activities:

• Piggy bank: Give them a clear jar (not an opaque piggy bank) so they can see their money growing.
• Play shop: Set up a pretend shop at home where they “buy” items with play money.
• Three-jar system: Label three jars — Spend, Save, Share. Every time they receive money, divide it into three parts.

Ages 7-12: Building Foundation

Children at this age can understand more complex concepts. Start introducing the idea of goals, choices, and delayed gratification.

Lessons to Teach:

• Needs vs. wants: Help them distinguish between things they need (school supplies) and things they want (toys, games).
• Saving for a goal: If they want a ₹500 toy, help them save ₹50 per week for 10 weeks.
• Opportunity cost: If you spend ₹200 on candy, you cannot spend that ₹200 on a book.
• Basic budgeting: Give them a small weekly allowance and let them manage it.

Activities:

• Savings challenge: Challenge them to save a specific amount in a month. Match their savings as a reward.
• Shopping comparison: Take them shopping and let them compare prices of similar items.
• Open a bank account: Many banks offer children’s savings accounts. Take your child to the bank, let them fill the form, and deposit their savings.
• Allowance management: Give a fixed weekly allowance. Do not bail them out if they spend it all on day one — let them experience the consequences.

Ages 13-17: Introduction to Investing

Teenagers can handle more sophisticated financial concepts. This is the perfect time to introduce investing.

Lessons to Teach:

• Compound interest: Show them how ₹1,000 grows over 10, 20, and 30 years. The “8th wonder of the world” concept is powerful.
• Inflation: Explain that money loses value over time. ₹100 today buys less than ₹100 ten years ago.
• Risk and return: Higher potential returns come with higher risk.
• Types of investments: Explain stocks, mutual funds, fixed deposits, and gold in simple terms.
• The stock market: Use examples of companies they know (like the brand of their phone or favorite snack) to explain how stocks work.

Activities:

• Stock market game: Give them a virtual portfolio of ₹1 lakh and track real stock prices for 6 months.
• Start a SIP in their name: Open a mutual fund account (in your name, for their benefit) and start a ₹500 SIP. Show them the statements monthly.
• PPF or SSY contribution: If you have a PPF or SSY account for them, involve them in deposits and show them the passbook entries.
• Read financial news together: Discuss one financial news story weekly — why did the stock market fall? What is inflation?
• Entrepreneurship: Encourage them to earn money through small ventures — tutoring, selling crafts, or offering services. This teaches the value of earning.

Ages 18+: Real-World Practice

Once your child is 18, they can open their own bank and investment accounts. Help them:

• Open a savings account and demat account in their name
• Start their own SIP (even ₹500/month)
• File their first income tax return (if applicable)
• Create a basic budget for their expenses
• Understand credit scores and the responsible use of credit

Practical Tips for Parents

• Be a role model: Children learn more from what you do than what you say. If they see you saving and investing, they will too.
• Be honest about money: You do not need to share exact numbers, but be open about financial decisions — “We are saving for a vacation” or “We are choosing the cheaper option because we are saving for your education.”
• Allow mistakes: Let them make small financial mistakes early. The lessons stick better.
• Make it fun: Use games, apps, and challenges instead of lectures.
• Talk about money regularly: Financial education should not be a one-time talk. Make it a regular part of family conversations.
• Do not use money as punishment or reward: This creates an unhealthy emotional relationship with money.

Books and Resources

• “Rich Dad Poor Dad” by Robert Kiyosaki — Great for teenagers and parents alike
• “The Richest Man in Babylon” by George S. Clason — Timeless money lessons in story form
• “Let’s Talk Money” by Monika Halan — Excellent India-specific personal finance book

How to Create a Will in India: Simple Guide

Most Indians do not have a will. According to various surveys, less than 10% of Indians create a will during their lifetime. This leads to family disputes, legal battles, and significant financial losses for the people left behind. Creating a will is one of the most important — and most neglected — financial planning steps.

The good news is that creating a will in India is simpler than you think. You do not need a lawyer (though it helps), and it does not need to be on stamp paper. Here is a complete guide.

What Is a Will?

A will is a legal document that specifies how you want your assets (property, money, investments, possessions) to be distributed after your death. The person making the will is called the testator. The people receiving the assets are called beneficiaries.

Why You Need a Will

• Control over distribution: Without a will, your assets are distributed according to personal law (Hindu Succession Act, Indian Succession Act, etc.), which may not align with your wishes.
• Avoid family disputes: A clear will reduces the chances of disagreements among family members.
• Faster settlement: Probate (legal validation of a will) is faster and cheaper than succession proceedings.
• Protect dependents: You can ensure that specific assets go to people who need them most — a dependent parent, a child with special needs, etc.
• Appoint a guardian: If you have minor children, a will lets you designate who will take care of them.

Legal Requirements for a Valid Will in India

Under the Indian Succession Act, 1925, a valid will must meet these conditions:

1. The testator must be of sound mind and at least 18 years old.
2. The will must be made voluntarily — no coercion, fraud, or undue influence.
3. The will must be in writing — handwritten or typed.
4. It must be signed by the testator at the end of the document.
5. It must be attested by at least two witnesses who have seen the testator sign the will. Witnesses should not be beneficiaries.

Important: A will does NOT need to be on stamp paper, notarized, or registered to be legally valid. However, registration is recommended for added legal strength.

Step-by-Step Guide to Creating Your Will

Step 1: List All Your Assets

Create a comprehensive list of everything you own:

• Immovable property (house, land, flat)
• Bank accounts (savings, FDs, RDs)
• Investments (mutual funds, stocks, PPF, NPS, EPF)
• Insurance policies
• Gold and jewelry
• Vehicles
• Business assets and ownership stakes
• Digital assets (crypto, online accounts with value)
• Any other valuable possessions

Step 2: Decide on Beneficiaries

Decide who gets what. You can distribute assets to:

• Spouse
• Children
• Parents
• Siblings
• Other relatives
• Friends
• Charitable organizations

Be specific. Instead of “my property goes to my children,” write “my flat at [address] goes to my son [name] and my daughter [name] in equal shares.”

Step 3: Appoint an Executor

An executor is the person responsible for carrying out the instructions in your will. Choose someone you trust — a family member, friend, or professional (like a lawyer or CA).

Step 4: Appoint a Guardian (if applicable)

If you have minor children, appoint a guardian who will take care of them. Discuss this with the proposed guardian beforehand.

Step 5: Write the Will

You can write it yourself or use a lawyer. The will should include:

• Your full name, address, and date of birth
• A declaration that this is your last will and testament, and it revokes all previous wills
• Details of each asset and who it is bequeathed to
• Name and details of the executor
• Name and details of the guardian (for minor children)
• Date and place of signing
• Your signature
• Signatures of two witnesses with their names and addresses

Step 6: Sign and Get Witnesses

Sign the will in the presence of two witnesses. The witnesses should:

• Be adults of sound mind
• Not be beneficiaries of the will
• Sign the will after seeing you sign it

Step 7: Register the Will (Recommended)

While not mandatory, registering your will at the Sub-Registrar’s office provides several benefits:

• Difficult to challenge in court
• Safe custody with the government
• Proves the date and authenticity of the will

Registration fee is nominal and the process is straightforward.

Step 8: Store Safely and Inform

Keep the original will in a safe place — a bank locker, with your lawyer, or at home in a fireproof safe. Inform your executor and close family members about its existence and location.

When to Update Your Will

Review and update your will when:

• You acquire or sell significant assets
• A beneficiary passes away or a new family member is born
• You get married or divorced
• Your financial situation changes significantly
• You want to change the executor or guardian

You can update by creating a new will (which automatically revokes the previous one) or by adding a codicil (an amendment to the existing will).

Common Mistakes to Avoid

• Not making a will at all — the biggest mistake
• Being vague about asset distribution
• Not updating the will after major life events
• Having a beneficiary as a witness (invalidates their bequest)
• Not informing anyone about the will’s existence