Eligible entities for opening or maintaining Institutional Savings Accounts as per RBI Master Direction DBR. Dir. no. 84/13/03.00/2015-16 updated as on September 16, 2022:
Primary Co-operative Credit Societies financed by the bank
Khadi and Village Industries Boards
Agriculture Produce Market Committees
Societies registered under the Societies Registration Act, 1860, or any other corresponding law in force in a State or Union Territory, excluding societies registered under the State Co-operative Societies Acts and specific state enactments creating Land Mortgage Banks
Companies licensed by the Central Government under Section 8 of the Companies Act, 2013, or Section 25 of the Companies Act, 1956, or under the corresponding provision in the Indian Companies Act, 1913, permitted not to add the words 'Limited' or 'Private Limited' to their names
Institutions, excluding those mentioned in section 28(h), whose entire income is exempt from payment of Income-tax under the Income-Tax Act, 1961
Government departments, bodies, or agencies for grants/subsidies released for the implementation of various programs/schemes sponsored by Central Government/State Governments, subject to production of authorization from the respective Central/State Government departments to open savings bank accounts
Development of Women and Children in Rural Areas (DWCRA)
Self-help Groups (SHGs), registered or unregistered, engaged in promoting savings habits among their members
Farmers' Clubs – Vikas Volunteer Vahini – VVV
According to RBI guidelines, savings accounts cannot be opened for the following entities:
Government departments or bodies relying on budgetary allocations for the performance of their functions
Municipal Corporations or Municipal Committees
Panchayat Samitis
State Housing Boards
Water and Sewerage/Drainage Boards
State Text Book Publishing Corporations or Societies
Metropolitan Development Authority
State/District Level Housing Co-operative Societies
Any political party or trading/business or professional concern, regardless of its legal structure (proprietary, partnership firm, company, or association)
Entities that are not eligible to open a savings account can explore our Institutional Current Account option. For more information about the Institutional Current Account, please visit any of our branches.
Entities qualified to open or maintain Institutional Savings Accounts according to RBI regulations encompass Primary Co-operative Credit Societies funded by the bank, Khadi and Village Industries Boards, Agriculture Produce Market Committees, and Societies registered under the Societies Registration Act, 1860, or equivalent state legislation, with exceptions for those under State Co-operative Societies Acts and specific laws for Land Mortgage Banks. Moreover, Companies licensed by the Central Government under Section 8 of the Companies Act, 2013, or Section 25 of the Companies Act, 1956, are eligible, provided they are allowed to exclude 'Limited' or 'Private Limited' from their names. Institutions with tax-exempt income under the Income-Tax Act, 1961, and Government departments, bodies, or agencies receiving grants/subsidies for implementing programs/schemes sponsored by Central or State Governments, qualify upon obtaining authorization from the respective departments. Additionally, Development of Women and Children in Rural Areas (DWCRA), registered and unregistered Self-help Groups (SHGs) striving to promote savings habits among their members, and Farmers' Clubs – Vikas Volunteer Vahini – VVV are also considered eligible entities.
Entities eligible for opening or maintaining Institutional Savings Accounts as per RBI guidelines include Primary Co-operative Credit Societies financed by the bank, Khadi and Village Industries Boards, Agriculture Produce Market Committees, Societies registered under the Societies Registration Act, 1860, or any corresponding state law, excluding those under State Co-operative Societies Acts and specific enactments for Land Mortgage Banks. Additionally, Companies licensed by the Central Government under Section 8 of the Companies Act, 2013, or Section 25 of the Companies Act, 1956, are eligible, provided they are permitted not to include 'Limited' or 'Private Limited' in their names. Institutions whose entire income is exempt from Income-tax under the Income-Tax Act, 1961, along with Government departments, bodies, or agencies receiving grants/subsidies for implementing programs/schemes sponsored by Central or State Governments, are eligible upon providing authorization from the respective departments. Moreover, Development of Women and Children in Rural Areas (DWCRA), Self-help Groups (SHGs), both registered and unregistered, aiming to promote savings habits among their members, and Farmers' Clubs – Vikas Volunteer Vahini – VVV are also eligible entities.