Joint Account Rules and Regulations in India | DBS Bank (2024)

Understanding the Joint Account rules in India

Key Takeaways

  • Joint Accounts have more than one account holder.
  • Depending on the account mode, account holders can enjoy certain privileges.
  • Joint and Joint or Survivor Accounts need all account holders to mandate transactions.
  • For Former or Survivor and Latter or Survivor accounts, account operation gets passed to the other only if one of the account holders dies.
  • Since money can be withdrawn without any consent, you must only open Joint Accounts with people you trust.

A Joint Account is a Bank Account with more than one holder. Such an account can be a Savings Account, Current Account, Fixed Deposit, Loan Account, etc. For these accounts, questions like 'who is the owner', 'who can withdraw money', and 'can I remove other account holders' are legitimate. Our comprehensive guide on Joint Bank Account rules answers all such questions.

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Joint Account Rules in India

Joint Accounts are like Regular Bank Accounts, except they are operated by more than one account holder. Not every account holder of a Joint Account can deposit and withdraw money, transfer funds, make ATM withdrawals, issue cheques, etc.

Account Operation

You can open a Joint Account like you would open a regular bank account, i.e., fill out the account opening form and complete the Know Your Customer (KYC) process. Simply select the mode of holding as joint. Following are the Joint Bank Account Rules in India per the account mode.

  • Joint: All transactions in the account must be approved and signed by all the account holders. If any one of the account holders dies, the account will be deemed inoperable, and the bank will pass on the balance in the account to the survivor.
  • Joint or Survivor: This account is similar to the Joint one; however, the survivor can continue to operate the account.
  • Either or Survivor: This account has two account holders, a primary and secondary account holder, and either or both can operate the account.
  • Former or Survivor: Only the primary account holder can operate this account. Per Joint Bank Account rules on death, the other joint account holder can operate the account upon the demise of the primary account holder.
  • Latter or Survivor: The second account holder can operate the account. After their death, the primary account holder takes over the operations.
  • Anyone or survivor: This type of Joint Account is operated by more than two persons, and they do not require each holder to sign off on transactions.


Account holders must establish the purpose of the joint account to decide how the account will be funded. Depending on the account type, not all account holders can operate the account, which also means limitations on deposits.


In 'Either or Survivor' and 'Anyone or Survivor' accounts, joint holders have access to funds without consent from others, regardless of who funds the account.

Account Closing

Whether you are the primary account holder or not, you can choose to close the account at any time. However, in the case of 'Joint', all members must sign the account closing form.

Final Note

Joint Accounts come with numerous benefits, especially for spouses and business partners looking to manage their expenses jointly. However, there are certain Joint Account rules and regulations that all account holders must follow. You must open joint Accounts only with those whom you trust. All account holders must agree to the stipulated terms and conditions before opening a Joint Bank Account.

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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.

Joint Account Rules and Regulations in India | DBS Bank (2024)


What are the rules for joint bank accounts? ›

Following are the Joint Bank Account Rules in India per the account mode. Joint: All transactions in the account must be approved and signed by all the account holders. If any one of the account holders dies, the account will be deemed inoperable, and the bank will pass on the balance in the account to the survivor.

What are the limitations on joint bank accounts? ›

If the joint account earns interest, you may be held liable for the income produced on the account in proportion to your ownership share. Also any withdrawals exceeding $14,000 per year by a joint account holder (other than your spouse) may be treated as a gift by the IRS. This may subject you to gift tax.

What are the rules for joint accounts in RBI? ›

In case of joint deposits, after the death of one of the depositors, the banks may allow variation/cancellation of a subsisting nomination by other surviving depositor (s) acting together. This is also applicable to deposits having operating instructions "either or survivor".

Can one person withdraw money from joint account in India? ›

The money in joint accounts belongs to both owners. Either person can withdraw or spend the money at will — even if they weren't the one to deposit the funds. The bank makes no distinction between money deposited by one person or the other, making a joint account useful for handling shared expenses.

Who gets money in joint account after death? ›

Joint Bank Account Rules on Death

"The joint owner becomes the legal and equitable owner of all funds in a joint account at the instant of death," says Doehring. "It does not become part of the probate estate."

What are the tax implications of joint account with spouse in India? ›

Joint Account with Spouse: If the joint account is held between spouses, any interest earned from the account is generally considered to be income of the first account holder (primary account holder) for tax purposes. It will be taxed as per the individual's applicable income tax slab rates.

What are the dangers of a joint account? ›

A joint account might damage your credit score

Opening a joint account adds a financial link to the other person. This means companies will look at both of your credit histories as part of any credit checks. If they have a poor credit history, this might lower your chances of acceptance.

What are the benefits of joint account in India? ›

The Benefits of Joint Bank Accounts:
  • Easy Management of Finances - One of the main benefits of a joint account is that it makes managing collective finances easier. ...
  • Avoiding Probate - ...
  • Convenience - ...
  • Increased Savings - ...
  • Better Financial Planning - ...
  • Better Credit Score -

Which bank is best for joint account in India? ›

SBI, ICICI, HDFC, Ujjivan Small Finance Bank, Yes Bank, Kotak Mahindra, RBL Bank, DBS, IndusInd and IDFC First Bank are among some of the lenders offering joint accounts.

What are the 2 types of joint accounts? ›

In the United States, there are typically two types of joint accounts: survivorship accounts and convenience accounts.

Do joint account holders have equal rights? ›

Joint account holders have the same rights and access to an account as the primary account holder. A joint account holder can designate beneficiaries to the account without authorization from the primary account holder. A beneficiary has no rights or access to your accounts.

How much money is protected in a joint bank account? ›

You get up to £170,000 protected in a joint account

It's simply the same protection as if each account holder had a separate account. The best way to work out the protection that applies is to know that the FSCS considers that half the money in the account belongs to each person. An example should help...

Who pays taxes in joint account in India? ›

The Tax Implications of Joint Bank Accounts

If the interest of a connected joint account and fixed deposit is more than Rs. 10,000 per year, the primary account holder is subject to TDS. Joint account of two non-related persons is not accountable to deduction for withdrawals of up to Rs.

Can I legally take money out of a joint account? ›

When you have a joint bank account, you don't need your partner's permission to take a withdrawal. You can remove funds from that account on your own, and your bank won't ask for verification that the other person on the account is okay with that transaction.

Is PAN card mandatory for joint account? ›

What documents are required to open a joint bank account? Each account holder must provide valid identity proof and address proof documents, such as Aadhaar card, PAN card, passport, voter ID, or driver's license. Additionally, passport-size photographs of all account holders may be required.

What happens if you have a joint bank account and split up? ›

In many cases, a judge overseeing divorce proceedings will award each member of a splitting couple 50% of what's in a joint bank account. There can be exceptions, but your best bet is to leave that money alone until you receive instructions on what to do with it.

Does it matter who is primary on a joint account? ›

Primary account holders are legally responsible for the account. Primary account holders can name others as "authorized users" on the account, but they remain responsible for it. Joint account holders share responsibility for that account and both are considered primary account holders.

Can a wife empty a joint bank account? ›

If the funds in your joint bank account are considered separate property and owned exclusively by your spouse, they may legally be able to drain the account. Similarly, even if the account is community property, a spouse may be able to withdraw money for reasonable living expenses, legal fees, and children's expenses.

Does a will override a joint bank account? ›

A joint account generally passes outside of the will because it is considered to be a non-probate asset meaning it passes directly to the surviving owner rather than through the will.

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