Direct Debit Request Form Financial Institution Account: Fill & Download for Free

Working in the Finances sector of my company, and having had extensive training in how the banking sector works overall, I will try and explain the flow of money between banks in general and make comparisons to how it works in India.How does funds transfer take place between two or more banks?Before I explain in detail, I'll list down the meanings of few commonly used terminologies in the banking domain-Creditor- The person/institution which receives funds/ whose account is credited. Also known as beneficiary.Debtor- The person/institution from whom funds are debited and credited to the creditor.Initiating party- The one who initiates any transaction. (eg) credit transfer or direct debit.Accounting relationship- When any bank/institution holds an account with another institution, they're said to have an accounting relationship.Clearing house/ Clearing & Settlement Mechanism(CSM)- A centralized institution (usually Government owned) with which all banks in the country have either a direct/indirect accounting relationship. They are said to have a membership with the Clearing house. In India, the Reserve Bank of India(RBI) is the clearing house. The CSM is responsible for transfer of funds between any two banks in a country. Clearing and settlement is a two-step process- The process of calculating the net obligation that each bank owes to another is known as clearing. There is no actual transfer of funds at this stage. Once this is calculated, the respective amount is credited/debited to the respective banks. This process is known as settlement.Nostro/Vostro account- When a bank(Bank A) holds an account/accounting relationship with another bank(Bank B) in a foreign country, that account is said to be Nostro account for Bank A and Vostro account for Bank B. Nostro/Vostro refer to the same account which are viewed differently. Usually, both banks involved hold accounts with the other bank.Correspondent/Correspondent bank- An intermediary bank, which aids in transfer of funds between two banks which do not have a direct relationship with each other.RTGS- Real Time Gross Settlement. As the name indicates, the transfer of funds takes place "real-time", i.e there is no waiting period for the funds to be transferred from one bank to the other, via clearing house. Gross settlement means that the funds are transferred on a one-to-one basis, without any netting procedure. This mode is usually used for transfer of high value payments.NEFT- National Electronic Funds Transfer. This is usually used by individuals or corporate customers for low-value payments, where the transfer of funds need not be immediate, but takes place two or three hours after the instruction has been made. This follows a netting process, where the clearing house determines the net "obligation" that Bank A owes Bank B and debits/credits their respective accounts accordingly.Note: RTGS and NEFT are the two modes of electronics funds transfer in India. Other countries have similar systems in place.Now, there are two basic modes of funds transfer- Credit Transfer & Direct Debit. This system is universal, and it exists across the globe at all financial institutions in some form.Credit Transfer:A credit transfer is a simple transfer of money from either -1. An account held in one bank, say Bank A, to another account of the same bank. This is called as intra-bank credit transfer.2. An account held in a bank, say Bank A, to an account held at another bank , say Bank B. This is called as inter-bank credit transfer.In a credit transfer, the initiating party is the debtor.Case 1:In this case, since the accounts of both parties involved belong to the same bank, the funds are directly transferred from one account to another, which is a simple case of debiting the debtor account with the amount to be transferred and crediting the creditor account with the same amount. There is no involvement of clearing house in this case. This is termed as a simple "book transfer" as in the olden days, bank accounts were settled and accounted for using huge books called "ledgers".Case 2:There are sub-types in this scenario. This may occur when funds are to be transferred between two bank accounts in the same country, or two bank accounts in different countries.If the bank accounts are in the same country, then as explained above, the clearing house comes into picture. Depending on whether the payment is made through RTGS/NEFT, the clearing house routes the payments accordingly from Bank A to Bank B. If either Bank A or Bank B are not direct members of the clearing house, then the funds are routed through an intermediary bank which is a direct member of the CSM. Then, Bank A or Bank B, are said to have an indirect accounting relationship with the CSM.When the funds are to be transferred between accounts held at two different countries, if they have a Nostro/Vostro relationship, then the debtor bank credits its Nostro account with the amount to be transferred and then the Creditor bank withdraws the amount from that account onto its own account known as a settlement account/wash account. From this account, the money is transferred to the individual/institutions account.If the banks between which the funds have to be transferred do not have a Nostro/Vostro relationship, then they make use of a correspondent bank/banks. The correspondent is one who usually has an accounting relationship with both the debtor and creditor banks. Hence, it acts as an intermediary between the two banks to transfer money. Assuming Bank C as the intermediary bank, money is transferred from Bank A to Bank C and then from Bank C to Bank B.There can be more than one correspondent bank involved in a funds transfer.Note: Credit transfer is usually a non-reversible process i.e. once funds have been transferred, they cannot be reversed by the initiating party. However, in certain regions like Europe, there is a provision for reversal of credit transfer even after transfer of funds. In India, it is non-reversible.Direct Debit:A direct debit is a mode of funds transfer wherein the funds are transferred from one account to another based on a "mandate" or an agreement. The debtor signs an agreement with the creditor giving him permission to withdraw a certain amount on a monthly/yearly basis.Here, the initiating party is the creditor.An example of direct debit is payment of utility bills. We sign a mandate with "Airtel" allowing them to debit a fixed amount from our account for our telephone/broadband services. Airtel initiates the request for funds transfer on the specified date, and after verifying the mandate details, the amount is debited from your account and credited to Airtel's account.It is interesting to note that a Recurring Deposit(RD) is NOT an example of direct debit. It is just an automated form of credit transfer, wherein we set a Standing Instruction(SI) to debit our account on a periodic basis.Transfer of funds in Direct Debit takes place in a similar manner like the Credit Transfer, with the major difference being that it is initiated by the creditor and verification of mandate takes place before funds are transferred. The debtor is intimated beforehand to ensure sufficient funds are held at his account so that the debit process occurs smoothly.Note: Banks in India offer compensation to the customer in case they carry out any erroneous transactions. Also the customer can instruct the bank to stop payment if the debit amount is incorrect. However, after settlement, he cannot reverse the payment.In certain regions, mainly Europe, the debtor has the provision to reverse the direct debit up-to a year after the funds have been credited to the beneficiary.When we transfer funds electronically from one bank to another, it doesn't require for funds or cash in physical form to actually be moved from the cash vault of one bank to another. There doesn't exist enough currency in physical form, i.e as cash ,in the world, as reflected in bank accounts. Most of it is just manipulation of numbers electronically and in the form of bonds/ other assets.

Ever wondered what a demat account is? How to choose the best demat account for you?For you to become financially independent, you need to start building on your financial assets; these may be anything from equity, mutual funds, bonds, IPO debentures, gold etc. You have to remain invested in a particular financial asset(s) for an extensive period. However, to achieve this, adequate financial planning is required. You need to endure a bit of risk as well as secure yourself to generate the maximum yield from your investment. For investing in the Indian stock market, you need to have a demat account.You should not settle for mediocrity for your demat account. But, choose the best option, which requires some homework and precision planning. To open a demat account, you have to select a depository that would be best suited for you to trade in the share exchanges. Consequently, you have to choose the best Demat account for trading to begin your journey in investing shares.A demat account is opened to buy or sell shares. As per SEBI – Securities and Exchange Board of India, every individual who intends to invest via purchase or sale of shares either electronically or by way of physical share certificates through the stock exchanges are required to set up a demat account. You cannot trade in shares if you do not have a legitimate demat account.There are many banks and financial institutions which provide the facility to the investor to open a bank account. There are even private brokers who offer assistance to new investors. However, one has to choose the best for their investment purpose.Below are a few things to consider on choosing the best demat account in India:Simple Account opening:The first step should be the simplest, that is the account opening formality should be extremely simple for you - the investor.SEBI has directed a detailed process of opening a demat account which the DP – Deposit Participant(s) must follow. Furthermore, DPs can further simplify this process to a great extent.For instance, the best demat account that is convenient for the investor can be opened through the e-KYC process, wherein the entire process of account opening is validated using the investor’s Aadhar data. This e-KYC process is carried out only online, and the investor needs only to do a final self- identification either through an in-person verification that is physical verification or through a video camera. However, a trade must be carried out in less than two days of account opening. Whereas, if an account has been opened through the physical format that is filling in a form and going in person, the trade must be conducted in less than five days.Furthermore, SEBI has mandated every DP to provide investors with the Basic Services Demat Account (BSDA), which promises to provide limited services at reduced costs to retail investors. It gives an option of an online Demat account facility. These accounts are also known as no-frills or basic demat accounts. Moreover, SEBI states that every DP will make basic trading accounts available with limited and essential services at reduced costs.The Basic Services Demat account makes for one of the best online demat account options for the inexperienced investor. The charges for the BSDA account shall be highlighted in the following point.Economical Demat Account Charges:Another pointer to consider is the price point of the DP and account charges.Opening a demat account has a cost, even if it means that no transactions are carried out throughout the year and your account is idle. Today, banks, financial institutions, depository participants, brokers, etc., most of the time, do not charge any fees for opening a demat account. However, when you calculate the cost of the demat account, you need to consider all the charges.Let’s look at all the charges levied to consider for choosing an ideal demat account:There is an annual maintenance charge -AMC that is billed to the investors account year on yearA fee is charged each time there is a debit from your demat accountCharges are applied if you request for a physical copy of your demat holding or physical transaction copyIf your Debit instruction Slip – DIS or Demat Request form – DRF is rejected your demat account incurs a costIf you hold shares in physical format, particular DPs charge to convert the share certificates from physical form to an electronic oneIf you opt for a BSDA account, the AMC structure is straightforward and provided via a slab basis. If your account value is up to INR 50,000, then there will be a NIL amount levied for AMC. However, for a value holding from INR 50,001 to INR 2,00,000, the AMC fee will be up to INR 100. This seems to be the most accurate fee structure to consider choosing the best demat accountHowever, some DPs also provide zero AMC demat accounts, wherein they waiver the AMC charges. Moreover, they either offer a limited time no AMC demat account, for instance, providing you with no AMC charges for the first year or a lifetime offer of no AMC demat account charges.These are a few points to consider regarding the charges when choosing or opting for the best demat account in India.The seamless interface between Banking and Broking:A very crucial aspect for choosing the best demat account for you should be a seamless process between your bank account and your broking account. This means that, when investing and trading in equities on a day to day basis, there is a shift towards the digital platform by investors for the ease of using the internet and trading apps to complete the trades. This requires a proper linkage of your bank account and your demat andTrading account.2 options are available, 2-in-1 accounts or 3-in-1 accounts. The 3-in-1 account links your bank account, your demat account and your trading account. This is mainly offered by those brokers who have group banking licenses; majority banking institutions provide the 3-in-1 account.How does a 3-in-1 account work? (i) The investor transfers a particular amount from the savings bank to the trading account; (ii) the trading account, that has its unique Id carries out the trade that is buying and selling of securities; (iii) the purchase of share credit is reflected in your demat account. The demat account is utilised as a bank wherein the shares bought are deposited, and the shared sold are withdrawn.Majority of the time, private DPs or financial institutions which provide the facility to the investors for a demat account as well as a trading account, offer a 2-in-1 account. This account extends a seamless system to transfer money and a link between the trading and demat account, which works most of the time.To summarise this tip, as long as the customer is provided with a seamless interface between the bank account, the trading account and demat account for an economical and straightforward transfer of money and service, the purpose is adequately fulfilled.In-depth Data Analytics:A vital factor to keep in mind is the availability of data. Today Depository Participants (DPs), financial institutions, banks, etc., are out-spreading their services beyond the plain vanilla account statements.These days DPs provide a host of online data analytics like real-time valuation, direct call to action requests for trading clients, analytics on demat inflow and outflow, timely alerts, dominant market players, industry concentration, thematic concentration, consolidated portfolio outputs among other things.In the current day and age, financial analysis is no longer only limited to examining share prices and share behaviour. These analyses are integrated with external factors which play a vital role in the performance of a share such as social and economic trends within the economy, the political environment and volatility, consumer behaviour, preferences etc. All this put together have the probability of affecting the company, industry which indirectly affects the share price.Hence, value additions such as data analytics, provide a great advantage for the decision making of the investor in choosing the best demat account available.Hygiene factors are essential to consider are:How efficiently does your DP carry out the transaction?Does he provide you with the best possible share price and assist you in tracking the market?How quickly does your DP manage the dematerialisation of physical shares?Are the demat debit and credits processed on time?What is the overall view about the quality of services provided by the DP?Are there any service-related complaints of the DP pending with either SEBI, NSDL or CDSL?Is there is any negative news about the DP and his company?These questions determine whether the DP is committed to offering high service standards.These are the main features or tips to consider when choosing the best demat account in India:The most secure way to trade is through the assistance of versatile Depository Participants.The demat account registered with the DP should provide an efficient and quick service.Online platforms which are aplenty today are your one-stop destination for all trading and investment requirements on the go.Real-Time updates and tracking on mobile apps through online trading and demat account are very much in demand.Research reports and recommendations provided by the DP is a value-added service for the investor to assist him through his investment journey.There is a plethora of companies, banks, financial institutions, Broking companies that offer all the above services or are limited to a few. It is best to keep in mind all the tips when considering to choose the best demat account, which is the best fit for you.ThanksHope You like the Answer. Request you to please upvote and Share my Answer.If you want to open a Demat Account, Please use the link above-in my profile. If you open the Accounts through the links you won’t pay a Penny More, but we will get a Small commission, which helps keep the lights on.

The government authorities of India has made it mandate for people to link their Aadhaar Card to their bank account, if you want to make sure that the benefits offered by means of the government can be transferred immediately to the account. Last date to complete the linking is 31 March 2018 and customers must do that without fail.Linking Aadhaar Card to HDFC bank account is simple as you have got seven methods to link Aadhaar to HDFC bank account.Link Aadhaar Card to HDFC financial institution Account thru OfflinePrior to linking your Aadhaar Card in your HDFC bank account through the offline direction, you may should hold certain documents ready including your bank passbook, your E-Aadhaar or Aadhaar Card, and the form for linking your Aadhaar Card to your HDFC bank account.Step 1: The utility form can be downloaded from the bank’s site and you'll have to take a print out of the same and fill within the necessary data which includes your bank details and your Aadhaar number, etc.Step 2: As soon as you have duly filled the form, you may should go to a branch of HDFC bank and submit the application shape as well as photocopy of your Aadhaar Card to a representative of the bankStep 3: The bank will carry the form together with a photocopy of the Aadhaar Card to perform in addition verification assessmentsStep 4: Once the bank has validated all of your facts, your Aadhaar Card will be linked in your HDFC bank account and you'll be notified by means by the bank.Link Aadhaar and HDFC Account via internet BankingStep 1: visit http://netbanking.hdfcbank.comStep 2: Login to your account, look for consumer identity/consumer id and click on “continue” tabStep 3: below the accounts choice, pick “Request”Step 4: next, click on the “View/replace Aadhaar number”Step 5: pick the account to which you would love to link your Aadhaar rangeStep 6: input the Aadhaar range once again and click on “update”Step 7: Double check all of the details entered, and click on “confirm” button, to finish the linking methodLink Your Aadhaar and HDFC Account thru mobile BankingStep 1: step one is to login to your HDFC bank’s mobile banking appStep 2: under debts, pick “Request” segmentStep 3: pick the account that desires to be linked to the Aadhaar card. Next, enter your Aadhaar numberStep 4: Re-enter the Aadhaar number again and click on “update”. All of the info are displayed on the screen, verify them and click on “verify” to finish the mannerStep 5: On finishing this, your HDFC account and Aadhaar gets linked in next three-four operating daysLink Aadhaar with HDFC Account through travelling Nearest ATMStep 1: once you entire your transaction, at the ATM display screen prompts the message “link Aadhaar in your bank account”Step 2: choose “yes” to continue furtherStep 3: input your 12-digit Aadhaar number to compete the linking of Aadhaar to HDFC accountLink Aadhaar Card to HDFC bank Account through online ModeStep 1: once you login for your HDFC internet Banking account, and then click on “link Aadhaar Card details”Step 2: you'll then be directed to the web form, where you have to input the detailsLink Aadhaar and HDFC Account through phone BankingFor Linking Aadhaar and HDFC bank via mobile banking, you want to have all the mobile banking IVR and subsequent choose financial institution account choice on IVR.Step 1: pick out the language, after which pick “choice 1”Step 2: You need to validate by means of the use of “customer identification and TIN” or “Debit Card wide variety and PIN”Step three: For any requests, you have to select “alternative 6”, and then “alternative 2” for requestsStep four: Then, for updating Aadhaar variety, pick “choice eight” and then re-enter the Aadhaar cardStep 5: IVR will send you a message that your Aadhaar range might be updated in subsequent three-four daysStep 6: after you complete these steps, you'll receive a confirmation message in relation with the request and dateLink Aadhaar and HDFC bank Account through SMSFollow the steps to complete the linking:Step 1: to your Aadhaar registered mobile, type AS area space spaceStep 2: send the SMS to 5676712When you send the message, you may receive a confirmation message to your mobile.Advantages of Linking Aadhaar and HDFC financial institution AccountMentioned below are the advantages of linking aadhaar to the bank account.1. Direct advantage transfer of LPG subsidy into the bank account2. Receive the advantages of scholarships and pension within the HDFC account3. Taking the benefit of Aadhaar-enabled charge structures (AEPS)How to test if Aadhaar is linked to the bank AccountHDFC customers now additionally have the option to cross-check if their bank account is connected to 12-digit Aadhaar card. There are three approaches to test if the account is connected along with HDFC Netbanking, mobile banking and get in touch with banking.go-Checking via the use of internet banking:Knowing the importance of your Aadhaar and bank account linking is straightforward and may be completed seamlessly. Below are the steps that will help you test the linking.Step 1: First, login to your net banking account by typing the username and passwordStep 2: Pick account, after which click on “Request”Step 3: subsequent, click on “View/replace Aadhaar number” to check the modern reputeChecking thru Mobile banking:Step 1: Login to your mobile banking portal with the username and passwordStep 2: choose “accounts” from the listStep 3: Click on “Request” and then pick out “View/update Aadhaar number” to know your Aadhaar and bank account linkingVerification through telephone banking:Customers who need to verify the their application through mobile banking should contact the 24/7 consumer care or can write at [email protected]