When Can You Replace Your Signature With A Thumb Impression For Bank Transactions?
An individual’s signature allows banks to verify whether the person is genuine during bank transactions, like cash deposits, withdrawals, etc.
An individual’s signature allows banks to verify whether the person is genuine during bank transactions, like cash deposits, withdrawals, etc.
Replace Your Signature With A Thumb Impression
A signature mismatch can cause enormous problems for bank transactions. This situation could arise due to factors like old-age-related mobility issues, failure to remember the signature with the bank, poor health or an accident causing the person to lose hand functions, etc. However, banks have established procedures to change the signature or suggest options for verification. One of them is the thumb impression. Sometimes, customers want to replace their signature with a thumb impression for bank transactions.
Customers who don’t remember their signatures, those who are physically weak and can’t put their signatures correctly, or those unable to carry out normal hand functions can opt for this option provided by the Reserve Bank of India (RBI) to allow the genuine account holders to avail of regular banking services.
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Although digital transactions, like the unified payments interface (UPI), are the norm today, some transactions, such as a cheque or a demand draft, still require a signature for which seniors think to replace their signature with a thumb impression for bank transactions. Moreover, some people, like senior citizens, may still prefer cheques or other physical banking services over net or mobile banking as they may be less tech-savvy than the younger generation.
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Shreejith Menon, COO- operations customer service & facilities, Fincare Small Finance Bank, says, “A literate person can change their signature to a thumb impression in a bank account. In fact, there is no restriction based on literacy for using either a signature or a thumb impression. Both methods serve as verification of your identity and consent.”
He mentions the benefits of thumb impression, such as no need to remember or practice the signature, and reduced risk of signature forgery, and cons, like the mandatorily carrying an ID proof for every transaction, and potential delays in the verification process of thumb impression.
As per RBI, if an accountholder is too ill or incapacitated to sign a cheque or be physically present in the bank can put a thumb or a toe impression on a cheque or for other banking needs.
If they opt for a thumb impression on a cheque, rules stipulate that it must be done in the presence of two independent witnesses known to the bank, where one should be a bank official.
RBI advises banks to obtain a mark on the cheque or withdrawal forms from such accountholders in the presence of two witnesses, where one of them must be a bank official.
Menon says, “Visiting the bank in person is generally required to change your signature to a thumb impression. Visiting your home branch is preferred but not mandatory. Banks often permit changes at any branch within their network, though specific policies may vary. Contact your bank directly to confirm their process and requirements regarding location and online options, if any.”
To change your signature registered with a bank, you must follow the following steps:
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Retirement connotes a relaxed life with pursuing hobbies, travelling, and much more. But if there are not enough savings, these endeavours would remain unfulfilled. This is where a passive income can be a saviour
The biggest fear of most retirees is that their retirement corpus won’t last as long as they may live. So, they spend money, they do it with fear in the back of their mind. However, in reality, the chances of falling short of money are often negligible in such cases.
Certain professions, like doctors, chartered accountants, and lawyers, do not have a retirement age, so they should consult with their families to make the right choice before calling it quits.
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