Account Number

Definition:

An account number is a distinct identification number assigned by a bank or  financial institution to every customer upon creating an account. It serves as a personal

identifier for managing funds and tracking all financial activities linked to that account.

Example:

For instance, if Ramesh’s account number is 1234567890, this number is unique to  him and is used for all transactions related to his account.

How to understand an account number:

Upon opening a bank account, the bank issues an account number to ensure accurate tracking  of deposits and withdrawals.

Every financial transaction, including deposits, withdrawals, and transfers, is recorded under  this specific number.

Importance of an Account Number:

Identification: It allows financial institutions to identify the account owner.

Accuracy in Transactions: Ensures that funds are transferred and received correctly.

Safety & Record Keeping: Helps prevent confusion and maintains a clear record of all transactions.

Digital Banking:   Facilitates online payments, UPI transfers, and automatic bill  payments, enhancing convenience.