As of now, a citizen of India can open as many bank account he or she wants. There is no rule to cap the number of bank accounts which can be possibly open in one bank or a combination of banks.
But this will soon change, as Government is bringing in a legislation to cap the number of bank accounts which a person can open.
Criteria For Opening Multiple Bank Accounts
Government of India & Finance Ministry is bringing in a new legislation, which will restrict the number of bank accounts which can be opened.
There will be two type categories for bank users now: Businesses such as manufacturing, processing and other business operations wherein the customer is required to make multiple payments daily.
These can be exempted from this rule, but still they will report and inform the Government about every bank account.
The other type of category will be professionals, salaried employees and general entrepreneurs who will not be allowed to open multiple bank accounts.
As per the new rules, Government will decide how many bank accounts can they open at a time.
It has been found that some people open multiple bank accounts in different cities, in different banks and this will be stopped.
It is expected that every branch of a bank will be providing details of accounts with the tax authorities including Goods and Services Tax (GST) officials so that database of accounts opened in different parts of the country by any particular person can be verified. If there are any discrepancies, further probe can be initiated by the authorities concerned.
Some other rules may also come into force, such as if a person has a current account in a bank, then he may not be allowed to open another current account in another bank.
An No Objection Certificate can be also asked to be produced in such instances.