Readers' Corner: Banking

My bank is offering me a low rate to transfer my existing balance from another credit card. If  I do so,  can the bank increase the rate immediately, or is there a guaranteed period for which I will get the promised rate?

It depends on the offer made by the bank at the time of initiating balance transfer — the offer duration is clearly communicated to customers right at the outset. Typically, the promised rate is applicable for a specified period of time unless otherwise stated.

I want to open a savings account in my 19-year-old daughter’s name. What are the benefits of opting for a student account as opposed to a regular account? I can afford the minimum balance required for a regular account.

For students, many banks offer exclusive accounts with benefits like lower balance maintenance requirement, higher free withdrawal transactions through ATM and branch, easy student loans, etc, as compared to regular accounts. The benefits  vary from bank to bank. So, a customer may want to compare before choosing the right account.

I am a working professional in the pharmaceutical field. I wish to enroll in a one-year course to further my knowledge, but my course is not approved by most banks for education loans. What other loans/funding options can I look at?

You may look at the following options for funding the course fee: personal loans, overdraft facility against fixed deposits and loan against securities, shares, mutual funds or properties.

A bank denied me a credit card. They just said that I didn’t meet the eligibility criteria. Is it possible to know further why was I denied the card?

According to the RBI guidelines issued in March 2007, Banks are supposed to “...convey in writing the main reason/reasons which, in the opinion of the bank/financial institutions have led to rejection of the loan applications”. All banks follow these regulations and send communication to customers stating the reason. The reasons could range from poor credit history to incomplete information /documentation. Even you can seek the information from the respective bank.

Is it possible to transfer my public provident fund (PPF) account from a post office to a bank near my house? How does this process work?

Yes, a PPF account can be transferred from a post office or bank to any other bank of your choice provided the institution is authorised by the government to manage the PPF business. For transferring, customers need to place a transfer request with the post office/bank branch where they are currently maintaining their account. The incumbent post office/bank will send the requisite account documents to the destination bank which  will contact the customer to complete the formalities.

I  have two non-operative savings bank accounts because I switched banks when I changed my job and city. Is it worth the time to close these accounts?

It is always advisable to proactively close unwanted/ unused accounts to prevent misuse. Although many banks have a process to close unused and inoperative accounts at periodic frequencies, the practice may not be uniform, which can result in the continuation of the accounts’ existence.

The writer is Executive Director, Axis Bank. The views expressed are the expert’s own. Send your queries to

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