A bank statement is a tool that provides complete details of transactions and balances for a defined period in your bank account. A summary of all deposits and withdrawals made in the account, including cash transactions and transfers, will be visible in the bank statement. Bank statements are important for effective financial management.
What is a Bank Statement?
The bank issues a bank statement to all its account holders to help them keep track of their financial activities. The statement provides insight into the financial transactions in a savings account, current account, or overdraft account. It makes reconciliation simple, especially for business accounts where the volume of transactions is huge.
How a Bank Statement works?
A bank statement summarizes financial transactions in an account for a particular period. This is how the statement works.
- The bank statements show all the transactions made on an account. It could be cash withdrawn from an ATM, an auto debit to a loan account, cheque deposits, cash deposits, transactions done using credit cards, etc.
- The transactions will appear in chronological order. Each transaction is recorded with the date, type of transaction, and the amount. The details of the payee or the payer will also be recorded.
- The statement will be generated monthly for each account on a specific date.
What is included in an Account Statement?
A bank statement typically contains the following information. There could be small variations in the layout specific to each bank.
- Heading: The bank logo and the contact information of the bank, IFSC Code etc will appear on the top of the statement.
- Account Information: This section contains the name of the account holder, residential address, account number, type of account, and period of the statement.
- Account Summary: Here you can find the opening and closing balance, total deposits and withdrawals for the account for the statement period.
- Transaction history: The statement will reflect all the transactions conducted during the statement period in chronological order. The details will include the date of the transaction, type of transaction (debit or credit), and description (beneficiary details). The debits or the amounts that go out of the account and credits are the amounts that come into the account.
- Balance: There is a running balance column after each transaction representing the account balance after each transaction is recorded.
- Fees and Charges: Fees and charges are recorded separately with a description of each transaction.
- Interest earned: If you are earning any interest, it will be listed separately with description.
- Other information: This section may contain terms and conditions or a disclaimer. This section may also contain the details of the banking ombudsman along with the address.
What is the format of an Account Statement?
A bank statement generally has three parts.
- Details of the Account Holder
- Details of the Account
- Transaction Details
The account holder details at the top of the bank statement refer to the name of the account holder, registered mobile number, and residential address. The statement period will also appear in this section.
Account details comprise account number, type of account, residential address, and any other details of the account holder.
The transaction details will have all the transactions for a given period with date, and amount, along with the details of the payer or payee.
The statement will also have bank details like the IFSC Code and MICR Code of the Bank, and contact details like email ID and telephone numbers.
The bank gives the option to the customer concerning the periodicity of the statement.
How to avail of a Bank Statement?
You have both an online as well as offline option to avail of a bank statement.
How to get bank statement offline?
For procuring a bank statement offline, the option varies with the bank. The two standard options are:
Option 1
- Submit an application for bank statement duly filled with account details and the periodicity of the statement.
- The bank will record the request and will deliver the statement to the registered address of the account holder.
Option 2
- Visit the nearest bank branch.
- Submit a bank statement request letter. The account details and the statement period have to be mentioned.
- The statement will be generated.
- You can collect the bank reconciliation statement.
- Every time you need a statement, the same procedure has to be followed. A fresh bank statement letter has to be submitted every time you need a statement.
How to get bank statement online?
Online bank statements can be generated through mobile apps or Internet banking portals. The statement will be available in pdf format.
Some banks send e-statements via email if you place a request on the net banking portal. These statements will be password protected for safety.
If you are wondering how to get bank statement online access, here is its procedure:
- Access your account through Internet banking or a mobile app.
- Click on the bank statement or e-statement option.
- Provide the period for which you need the statement. You can use the drop-down menu for this.
- Some banks send the e-statement on the registered email Id. And some banks provide the download or print option on the Internet banking facility or the mobile app.
Difference Between Bank Statement and Mini-Statement
The difference between a bank statement and a mini statement is shown in the table.
Bank Statement | Mini statement |
Shows all transactions for a bank account for a specific period. | It is a list of the latest 2 or 5 transactions conducted by the customer |
Generated either monthly or yearly | Can be generated at ATM anytime |
Online bank statements are provided free of cost. A bank account statement with certification from the bank is chargeable | Can access the statement at the ATM free of cost. |
Benefits of a Bank Statement
The following are the benefits of a bank statement.
Account Monitoring: Helps the account holder manage finances effectively by keeping track of the debits and credits in the account.
Identifying discrepancies: The statement helps timely identification of unauthorised and erroneous transactions for easy rectification.
Applying for loans: Helps the bank to assess the repayment capacity and financial stability of the prospective borrower.
Returns filing: Provides evidence of income and expenses required for accurate tax filing.
Top Banks Providing Bank Statements
The top banks providing bank statements are:
- SBI Bank
- ICICI Bank
- HSBC Bank
- HDFC Bank
- Axis Bank
- PNB Bank
- Bank of Baroda
- Kotak Mahindra Bank
Bank Statement : FAQs
You can obtain an online bank statement by accessing your account through mobile apps or an Internet banking portal.
Visit the nearest bank branch and submit a bank statement request letter and the bank will provide you with a physical statement.
Most banks have provided the option for downloading historical bank statements on the net banking portal.
Generally bank statements are issued monthly.
You can view the latest 3 or 5 transactions in a mini statement depending on the bank.