FAQs
How do I open a Current / Savings Account with HSBC?
Walk into any HSBC branch in India to open a Current / Savings Account or call us for more details. After that it is really simple - fill in the account opening form, provide us with the required documents and the minimum required amount (cash / cheque) and we will do the needful. You can also apply for the account online, if you have an existing account with HSBC.
What is the Balance that is required for HSBC Savings Account?
HSBC Savings account requires an Average Monthly Balance of Rs. 75,000 in a combination of savings account/ current account and fixed deposits including a minimum monthly balance of Rs. 25,000 in the savings account / current account or Smart Money facility with a minimum fixed deposit of Rs. 200,000. However, a "No Frills" Account can be opened with Zero balance.
What is the Average Monthly Balance (AMB) required to be maintained in the case of a HSBC Savings Account? How is the AMB calculated?
The minimum AMB required to be maintained for HSBC Savings Account is Rs. 75,000. The AMB is calculated by adding the end of day balances for each day in the month and dividing it by the number of days in that month.
Is there a charge for non-maintenance of Average Monthly Balance (AMB)?
There is a charge levied for non-maintenance of AMB. The charge is Rs. 350 per month. You may please refer to our tariff on www.hsbc.co.in for further details on applicable charges.
Do I need to give an advance notice for withdrawal of cash beyond a limit from a branch?
Prior notice (normally 24 hours) is to be given to the branch from where the cash withdrawal is to be made for an amount greater than Rs.1,00,000.
How can I earn higher returns on funds in my Current / Savings Account?
Currently, as per RBI regulations you earn interest at 4.00% p.a. (paid half yearly) on your Savings Account balances and NIL interest on your Current Account balances. However, if you choose, the moment your savings cross the required balance amount, the excess amount will get transferred to a Fixed Deposit, thereby earning you a higher rate of interest.
With effect from 1st April 2010, interest on the savings bank accounts will be calculated on daily product basis, as per RBI circular dated 24th April 2009 and interest will be paid out at half yearly rest with effect from 1st October 2010. For the period after 1st October 2010, savings account interest for the half year from April to September would be credited in the following month of October and interest for the half year from October to March would be credited in the following month of April.
Method of interest rate calculation:
i) Rupee Time deposits held in Domestic, Ordinary Non-Resident (NRO) and Non-Resident (External) NRE Accounts - In case of cumulative deposits, interest is compounded quarterly and the basis of interest calculation is 28-31/365. For term deposit with tenor less than three months or where the terminal quarter is incomplete, interest is calculated proportionately for the actual number of days reckoning the year at 365 days (365 days for leap years).In case of non-cumulative deposits, interest is paid out quarterly or half yearly as preferred by customer. This is effective for all Term Deposits placed / renewed on or after 20 Jan 2009.
ii) FCNR Deposit Accounts - In case of cumulative deposits, the interest on the deposits for more than one year accepted under this scheme is compounded at intervals of 180 days each and thereafter for remaining actual number of days. In case of non-cumulative deposits, interest is paid out half yearly.
Can I access my account when I am out of town / travelling in India?
Yes, you can check both the balances in your account as well as your transaction history at any of our branches or ATMs. Moreover you can also apply for our Internet Banking or Phone Banking facility which will give you access to your account balances and other services anytime, anywhere.
Can I withdraw cash in any other city where I do not have a Current / Savings Account?
It is possible to withdraw cash using the debit card at any HSBC or non HSBC VISA ATM in India or overseas (a transaction fee is applicable for withdrawals from non-HSBC ATMs in India and from any ATM overseas).
What if I need foreign exchange for private travel abroad?
A Resident Indian can avail of foreign exchange up to US$ 10,000 per person in any calendar year for tourism or private travel to any country other than Nepal and Bhutan. This allowance can be drawn in addition to exchange drawn for travel for any other purposes.
The document required to be produced is just your passport for verification and return.
Forms required to be completed by you will be given by the branch and this would consist of
- Application in Form A2
- FEMA declaration
- Release of Forex application form
- Traveler's Cheque and /or currency note purchase form
In the event you need to avail of more than the stated limit, you will have to make an application by letter to RBI, which we will forward for their consent. The excess withdrawal shall only be allowed on receipt of RBI approval.
What if I need foreign exchange for business travel abroad?
A Resident Indian can avail of foreign exchange up to USD 25,000/- or its equivalent per trip per person irrespective of period of stay for business, conference or specialized training.
All you need to do is produce the following documents:
- The traveler's passport for verification and return
- Letter from the Company/firm giving details of the business trip and the person or persons traveling
- Cheque or debit authority if the same is not contained in the letter in item 2.
Complete the following forms given to you by the branch:
- Application in Form A2 signed by the traveler
- FEMA declaration
- Traveler's Cheque and /or currency note purchase form
In the event you need to avail of more than the stated limit, the Company/firm will have to make an application by letter to RBI, which we will forward for their consent. The excess withdrawal shall only be allowed on receipt of RBI approval.
What if I need foreign exchange for overseas studies (as a parent or guardian)?
A Resident Indian can avail of foreign exchange upto USD 100,000/- or equivalent per academic year towards education abroad, based on self-certification.
All you need to do is produce the following documents:
- Student's passport for verification and return
- Letter from the student/guardian giving details of the study overseas and certifying the same
- Cheque or debit authority if not contained in the letter or given in the Traveler's cheque/currency notes/remittance purchase form
Complete the following forms given to you by the branch:
- Application in Form A2 signed by the Student/Parent
- FEMA declaration
- Traveler's Cheque and /or currency note purchase form signed by the student
Remittance purchase form (signed by the student/parent) if remittance is by draft or telegraphic transfer
In the event you need to avail of more than the stated limit of USD 100,000, you will have to submit a documentary support of the estimate from the overseas educational institution.
This amount can be released in tranches. In such instances you as a parent or guardian can apply for subsequent remittances certifying the quantum of exchange already drawn.
What if I need foreign exchange for overseas medical treatment?
A Resident Indian can avail of foreign exchange upto USD 100,000/- or its equivalent to cover treatment costs.
In addition to this amount upto USD 25,000 can be released for maintenance expenses of a patient. Any other person accompanying the patient as attendant can also draw upto USD 25,000.
All you need to do is produce the following documents:
- The passport for verification and return
- Letter detailing the medical treatment being sought overseas and self certifying the details
Complete the following forms given to you by the branch:
- Application in Form A2 signed by the traveler
- FEMA declaration
- Traveler's Cheque and /or currency note purchase form
- Remittance form for remitting any part of the amount by demand draft or telegraphic transfer to the hospital or to be carried with the traveler
In the event you need to avail of more than the stated limit of USD 100,000, you will have to submit an estimate either from the overseas doctor/hospital or your doctor in India indicating the approximate cost.
This amount can be released in tranches and you can instruct the Bank to remit any portion of the amount after going overseas. Such instruction should be given with suitable authority for the Bank to debit the account and also reference to the earlier remittance made.
What if I need foreign exchange for employment overseas?
A Resident Indian can avail of foreign exchange upto USD 100,000/- or its equivalent per person leaving the country on employment.
All you need to do is produce the following documents:
- The passport for verification and return
- Letter detailing the employment overseas and self certifying the details
Complete the following forms given to you by the branch:
- Application in Form A2 signed by the traveler
- FEMA declaration
- Traveler's Cheque and /or currency note purchase form
In the event you need to avail of more than the stated limit, you will have to make an application by letter to RBI, which we will forward for their consent.
What if I need foreign exchange for emigration?
A Resident Indian can avail of foreign exchange upto USD 100,000/- or its equivalent per person leaving the country on emigration. Please note that this does not allow for remittance in advance for obtaining points or credits for eligibility to emigrate. This is primarily to cover stay and maintenance expenses on emigration.
All you need to do is produce the following documents:
- The passport for verification and return
- Letter detailing and self certifying the details of emigration
Complete the following forms given to you by the branch:
- Application in Form A2 signed by the traveler
- FEMA declaration
- Traveler's Cheque and /or currency note purchase form
In all cases of Travel related exchange release the following apply:
- Unless you specifically request it, the Bank is not required to endorse release of exchange in the Passport
- Release of exchange in the form of currency notes is subject to restrictions. Travelers are allowed to purchase foreign currency notes / coins only upto USD 2000/-. Balance amount can be taken in the form of TC's / Bankers Draft. However travellers proceeding to Iraq and Libya can draw foreign currency notes / coins not exceeding USD 5,000/- whereas travellers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth states can draw the entire entitlement in form of foreign currency notes / coins
- In all cases traveler's cheques will be issued to the traveler in person and will be evidenced by the traveler's cheque being signed by the purchaser in the presence of the Bank official.
What if I need foreign exchange for donations or gifts to overseas beneficiaries?
A Resident Indian can remit upto USD 5,000 per year as gifts or donations to overseas beneficiaries.
The only document required to be produced is a letter detailing and certifying the details of remittance and the beneficiary to whom it is being made.
Complete the following forms given to you by the branch:
- Application in Form A2 signed by the remitter
- FEMA declaration
- Draft or Telegraphic transfer application form
What if I need foreign exchange for maintenance expenses of close relatives abroad?
A resident Indian can remit upto USD 100,000 per calendar year towards maintenance expenses of close relatives abroad.
A foreign national who is resident but not permanently resident in India and is a citizen of a foreign state other than Pakistan can transmit his entire net salary (after deduction of taxes, contribution to PF and other deductions) towards maintenance of his family abroad.
The only document required to be produced is a letter detailing and certifying the details of remittance and the beneficiary to whom it is being made. In case of a foreign national who is resident but not permanently resident in India we would also need Salary Certificate / slip or any other proof giving net salary. Foreign Nationals need to give a declaration stating that the source of funds for the remittance towards the maintenance of close relatives abroad is his / her salary.
Complete the following forms given to you by the branch:
- Application in Form A2 signed by the remitter
- FEMA declaration
- Draft or Telegraphic transfer application form
What if I need foreign exchange for other small value transactions?
The Reserve Bank has permitted, a resident Indian to remit upto USD 5000/- on current account towards sundry small value transactions like payment for services, subscriptions, and purchases, with minimum formalities. This foreign exchange cannot be used for purchase of prohibited items e.g. lottery tickets, banned or proscribed magazines, football pools, racing/riding tickets, participation in sweepstakes, payment of call-back services etc. If in doubt please contact the Bank for clarification.
The only document required to be produced is a simple letter from the applicant containing the basic information viz., name and address of the applicant, name and address of the beneficiary amount to be remitted and the purpose of remittance.
Complete the following forms given to you by the branch:
- Draft or Telegraphic transfer application form
What if I need foreign exchange for my current account transactions?
In respect of any other current account transaction please approach the branch with:
- A letter detailing and self-certifying the details of remittance and the beneficiary to whom it is being made.
- Supporting document detailing the nature of the transaction, value and beneficiary
Complete the following forms given to you by the branch:
- Application in Form A2 signed by the remitter
- FEMA declaration
- Draft or Telegraphic transfer application form
Once the Bank is satisfied with the nature of the transaction the Bank will be able to effect the remittance as required. While most transactions would be processed by the bank on the basis of the above, there could be situations that could call for supplementary information or reference to Reserve Bank. The Branch staff will guide you on this when they are contacted.
Can I use my International credit/debit card to meet my expenses?
Your International/debit card can be put to good use on various occasions:
- While you are on holiday outside India to meet your expenses.
- When you are outside India to purchase an item of import.
- When you are in India, to make a payment in foreign exchange for purchase of books and other items through Internet.
The use of international credit cards by residents while on visit abroad has been made free from all restrictions, without any item-wise limit within the overall ceiling of the credit card itself. International credit cards/debit cards cannot be used for purchase of prohibited items e.g. lottery tickets, banned or proscribed magazines, football pools, racing/riding tickets, participation in sweepstakes, payment of call-back services or for capital account transactions etc. If in doubt please contact the Bank for clarification.
What happens if I don't use my savings/current account for a very long time?
If there is no withdrawal transaction in your account, for e.g. withdrawal of cash at a branch/ATM, payment by cheque, transfer of funds through Internet Banking / Phone Banking / HSBC India ATMs etc., for a period of one year and more, your account gets classified as 'inactive' in the bank's systems. Please be advised that system generated debits (like charges, debit interest etc) are not considered as 'withdrawal' for classifying an account as active or inactive.
As a result of your account being classified as 'inactive', you may not be able to operate your account through our ATMs / Phone Banking / Internet Banking channels during the time that it remains 'inactive' on our systems.
To avoid this scenario, you should effect a withdrawal transaction from your account by withdrawing cash at a branch/ATM, making a cheque payment, transferring funds through Internet Banking / Phone Banking / HSBC India ATMs etc. at least once a year so that your account remains active at all times.
How do I reactivate my 'Inactive' Account?
If your account does go into the 'inactive' state, you need to follow the below-mentioned procedure to reactivate it.
Procedure for reactivation - If the account has been 'inactive' for less than a year
If your account has become inactive, as elucidated above, but it has been less than two years since the last withdrawal, you can reactivate your account through any one of the following options:
- In case you have other accounts which are active (with 'Either or Survivor' mandate in case of joint accounts), you can send the Bank a secure message from your Personal Internet Banking ID instructing the Bank to pass Re 1 debit and credit entries into your account.
- You can visit your HSBC branch (in India) and perform a withdrawal transaction using your chequebook.
- NRI customers (except those resident in USA & Canada) can also visit the nearest NRI Centre in person and submit a written request instructing HSBC to pass Re 1 debit and credit entries into the account.
- NRI customers can mail/courier a written request to any of the NRI Centre addresses instructing HSBC to pass Re 1 debit and credit entries into the account.
Procedure for reactivation - If the account has been 'inactive' for more than a year
If your account has become inactive as elucidated above and it has been more than two years since the last withdrawal, you are required to provide the following to reactivate your account:
- A letter for activation of the account signed by each Account holder
- A proof of photo identification such as Passport, Driving License, etc. for each accountholder. Passport is the only form of identification proof acceptable for Non Resident Customers.
- A duly filled in Account Opening Form signed by each accountholder.
All accountholders (including joint account holders) would need to visit in person, any HSBC branch (in India) or the nearest NRI Centre (if the accountholder is a Non-Resident Indian, except if the accountholder is a resident of USA or Canada) to submit these documents. If visiting a branch (in India), the accountholder is also required carry his/her chequebook along with the above documents.
NRI customers would also be able to mail/courier the above documents to any of the NRI Centre addresses after ensuring that the photo identification proof and the 'Customer Signatures' page on the NRI Account Opening Form are attested as 'Certified True Copy' by the Indian Embassy, an HSBC Group office or a Notary (in USA/UK/Canada/Australia/New Zealand).
Please be advised that charges as per our tariff shall be levied for all accounts where no withdrawal transaction has been performed for more than two years. In case the account does not have sufficient funds to recover the amount of such charge, the Bank shall be constrained to close such account.
