Bank Statement
A bank statement is a record that encapsulates the transactions made by the Bank’s account holder over a period of time, usually a month. The closing balance of the current statement should be a sum of the opening balance from the previous statement and the net of the transactions between the two periods. Bank statement is an opportunity for the customers to make sure that the bank’s records match their own records.
The bank statement prominently displays the account type and the transaction description. Transaction description gives the details of your account activity i.e. the deposits, fees and withdrawals.
Check your Statement carefully
You should carefully analyze your bank statement and keep them retained for your own records. The first thing that you should notice is the starting and ending dates i.e. the period covered by the bank statement. You should verify each and every transaction very carefully and look out for discrepancies and incorrect transactions. Any discrepancy should be reported to the respective bank immediately. There may be a case that certain amount has not been credited to your account or may be the bank has made some error. In all such cases the bank statement allows you to take necessary action.
Uses of Bank Statement
A Bank statement can be used for as a “Proof of Income”, while applying for loans. This kind of document is usually required by Self Employed to apply for any types of credits. While applying for Home Loan or Car Loan, minimum six months of latest Bank statements or even one year may be required to prove your income if you are self employed. The address on the bank statements shall match with your “Address proof” document.
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Your bank statement is THE MOST IMPORTANT of all the communication you get from your bank. It is important to check your own finances, and have access to the details of what you have done and where. If there are any discrepancies, then they must be addressed with your bank immediately. The sooner you detect an anomaly, the more quickly and easily it can be rectified.
Not to mention, that with the “KYC” rule that comes with banks, you can use a statement as a form of identification and proof of address.
Bank statement is an important document establishing the proof of one’s identity. It is required as a proof for loans and also an address proof. It also states the deposits and withdrawal of money from the account with their dates. So it is important banking document.
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