Is PAN mandatory for 5 yrs. TAX saver FD ?

This query is : Resolved

jaspal (Querist)
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19 February 2009
Greetings of the day !

I am an icici bank customer with account no. 015401507459 and i have an PAN card no.

I have gone to icici bank janakpuri branch and wanted to make an 5 yrs. tax saver FD of Rs. 40,000/-.

Form 60 details were already updated in my bank account.

I forgot to carry my PAN card to bank.They denied to make FD without PAN card.I told them to show me RBI or Income tax guideline on it.They were unable to show me the same.

Want to know that is there any guideline/annexure/policy/press release on the same. Clarifying that without PAN card , bank cannot issue a 5 yrs. Tax saver FD amounting to Rs. 40,000/- (Form 60 details already with bank)

Also, without PAN card how they have opened my account. Is it allowed to open account without PAN Card ?

Pl. revert asap.

B. Rgds
Jaspal Singh
(MBA + 2nd yr. LLB)

PS : Later-on i had gone to the icici branch with my PAN card and have opened a 5 yrs. Tax saver FD amounting to Rs. 40,000/-. FYIP.

VISHAL KUMAR SHAW

VISHAL KUMAR SHAW (Expert)
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19 February 2009 no it is not mandatory to show PAN for the making of 5 yrs tax saver f.d.subject to the internal banking circular.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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19 February 2009 4. Ceiling and monitoring of cash transactions

The extant RBI guidelines on the subject are as under :

(i) Banks are required to issue travellers cheques, demand drafts, mail transfers, and telegraphic transfers for Rs.50,000 and above only by debit to customers’ accounts or against cheques and not against cash (Circular DBOD.BP.BC.114/C.469 (81)-91 dated April 19, 1991) Further, the applicants (whether customers or not) for the above transactions for amount exceeding Rs.10,000 should affix permanent (Income tax) account number on the applications (Circular DBOD.BP.BC.92/C469-76 dated August 12, 1976). Since KYC is now expected to establish the identity of the customer and as the issue of demand draft etc. for Rs.50,000 and above is by debit to account, the requirement for furnishing PAN stands increased uniformly to Rs.50,000/-.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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19 February 2009 (b) Banks must inform the customer when the balance reaches rupees
forty thousand (Rs. 40,000/-) or the total credit in a year
reaches rupees eighty thousand (Rs. 80,000/-) that appropriate
documents for conducting the KYC must be submitted otherwise
the operations in the account will be stopped when the
total balance in all the accounts taken together exceeds rupees
fi fty thousand (Rs. 50,000) or the total credit in the accounts
exceeds rupees one lakh (Rs. 1,00,000) in a year.
(Circular No. RBI/2005-06/135 DBOD.NO.AML.BC.28
/14.01.001/2005-06 dated August 23, 2005)