Before the era of digitalization, bank statements were produced on paper periodically on a monthly, quarterly, or annual basis. Post the introduction of computers in the Banking sector, bank statements were generated monthly. Financial institutions are required to generate bank statements on paper for their customers unless the customer specifies electronic statements or no statement at all. Bank statements are also mailed to the respective residential address of the customers.
During the late 1990s, electronic bank statements were introduced that also aided financial institutions in saving the cost of printing statements. Digitalization of the banking sector led to providing online banking products and services that can be accessed by customers through internet banking. However, to date, banks give the customer the option to choose if they would like a paper statement or an electronic statement. Fast forward to 2022, the agenda of RBI for 2022-23 in the Banking Sector is digital-heavy.
Let us understand the basics such as what is a bank statement? What is the purpose of a bank statement? How to get a bank statement?
What is a Bank Statement?
A Bank Statement is an official account statement that is provided by banks to account holders on monthly basis. A statement is generated for a given period of time and is different for each account holder. Bank statements to aid in monitoring cash flow, deposits, withdrawals, and transfers, and also keep track of any fraudulent transactions.
A Bank Statement will include the customer's personal details, bank information, statement period dates, account balance, transactions, fees charged, and interest earned. In the customer’s personal information, one may find their name, home address, bank account number, statement start and end period. One can access the following transaction information from their bank statement which include check deposits, direct deposits, electronic transfers, canceled checks, reimbursem*nts, credits, credit card purchases, debit card purchases, ATM withdrawals, bill payments, bank fees, and interest earned.
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Types of Bank Statements and How to access your bank statement?
Financial institutions offer two types of bank statements: (i) paper bank statements and (ii) electronic bank statements.
What are the contents of a bank statement?
Paper statements are sent by courier to a customer's residential address. Bank Passbook is also provided by the bank that has to be updated at the bank premises to access your transaction details. While the electronic bank statement (also known as E-statements) can be accessed online through the official website of a bank if a customer has opted for internet banking services.
What is the purpose of a bank statement?
Bank Statements help to:
- Get an overview of your account, transactions, spending habits, etc
- Used as address verification or identity proof
- Supporting document for retained for audit and tax purposes
Bank statements are commonly used by the customer to monitor cash flow and check for possible fraudulent transactions. Bank statements are usually required to be retained for audit and tax purposes for a period set by relevant tax authorities. Bank statements can also be used for address verification or identity proof purposes.
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