Traditional Bank Passbook vs Digital Bank passbook- What’s the difference?

Bank Passbook

Bank is one of the forms of a financial institution that allows people to deposit money, withdraw it, take loans or credit whenever required, create fixed deposits to save for the future and a lot more. To avail all the services offered by a bank, a person is required to open a bank account.To open a bank account, one must fill the account opening form, submit the supporting documents and a minimal amount for account functioning. Upon opening a bank account, users can make transactions easily inside the country or outside the country. The international features to operate the banking facilities depends upon the type of bank account being opened by a person.

Once a person starts initiating the transactions, it becomes mandatory to record the same and track them. Tracking transactions is mandatory because it helps a user understand where he/she is spending or has spent money on and in case of any doubt or suspicious activity, he/she can connect with the bank to get clarification upon those transactions. 

There are 2 ways to get records of the transactions– one is the traditional paper printing transaction recording bank passbook, and the other is a digital bank passbook. In this blog, we will talk about a traditional bank passbook and a digital bank passbook in detail.

What is a Traditional Bank Passbook?

A bank passbook is a traditional way of recording the number of transactions being made and initiated by a user. It depicts all the transactions, be it the credited amount or the debited one. It also showcases where a person spent an amount and who has credited the amount to the bank account holder’s account. Everything is precisely printed in a bank passbook. However, a user is required to get the transaction printed on the bank passbook every time he/she visits the bank to update it. Following is some more information about a bank passbook-

  • A bank passbook is provided with the banking kit that also includes a cheque book, debit card and other key banking credentials
  • Bank passbook must be updated by the bank account holder by visiting the bank 
  • There is no other way to get the bank passbook updated
  • A traditional bank passbook is a paper printing method
  • A bank passbook can be used as proof as it consists of a user’s name, bank account number, etc.
Read More: Step by Step Guide to Activating Net Banking in Few Easy Steps

What are the Components of a Bank Passbook?

A bank passbook is the summary of a user’s bank account details. It is made up of the following components- 

Bank Passbook Components
Name of the bank
Address of the bank
MICR code
IFSC code
Name of the account holder
Type of bank account
Customer ID
Address of the account holder
Bank account number
Date of opening bank account

What are the Benefits of a Bank Passbook?

Though the role of a bank passbook is not counted as the topmost priority, it is one of the keys that can let a user know the transaction history from the beginning of opening a bank account. Listed below are the advantages of a bank passbook-

Recording account statements

A bank passbook records the transactions made by the account holder. The transactions printed on a bank passbook remain there forever. A user, whenever required, can have a look at the transaction history in the bank passbook. It provides a user with the time and date of transactions along with debited, credited amount and the total balance.

Monitor transactions effortlessly

For a bank account holder, it is easy for him/her to monitor the number of transactions made in a particular week/month/year and check the remaining balance through a bank passbook. The transaction history helps in showing the difference between total expenses and total savings and the difference between them helps in planning for the future. 

Used as a proof of transactions

A bank passbook can be submitted to organizations or to someone who would want to check the user’s financial statement. It can also be submitted to HRs for verification and salary deposit purposes.

Detects the fraud

A false or suspicious entry printed in a bank passbook can alert the bank account holder of the banking fraud. He/she can further inform the bank about the fraud or suspicious activity so that either the bank account can be deactivated temporarily or some other measure can be taken to prevent the bank account holder from any more loss.

What are the Limitations of a Bank Passbook?

Listed below are some of the limitations of a bank passbook- 

  • A user needs to visit the bank to get the bank passbook updated with new transactions 
  • There is no other way to get the bank passbook updated
  • A user is required to apply for a new passbook once it is filled with transactions
  • It might get lost as a user needs to carry it every time he/she wishes to update it

What is a Digital Bank Passbook?

Unlike traditional bank passbooks, a digital passbook is a digital way of recording transactions without the need to visit the bank branch. A digital bank passbook showcases all the transactions made in a week/month/year along with the debited amount. It can further be explained as- 

  • Digital passbook does not involve manual processing of transactions
  • The passbook gets updated as and when a transaction is initiated or completed
  • There is no need to visit the bank to get the transactions updated
  • Digital bank passbooks can be submitted for several purposes
  • These passbooks provide a detailed summary of all the transactions
  • One can segregate the date of the transaction to check the detailed summary of a particular transaction

Benefits of a Paytm Payments Bank Passbook

Paytm is one of the leading and most popular brands that allows users to perform various financial activities easily and smoothly. One of the services provided by Paytm is to open a Paytm Payments Bank savings account. Paytm Payments Bank savings account is a bank account that offers multiple benefits to its users such as competitive interest rates, physical/digital debit cards, ease to open an FD in a few taps without paperwork, ease to get the KYC completed, etc.

Upon opening a Paytm Payments Bank savings account, a user can access the Paytm bank passbook to check the transactions made in a week/month/year. Following are the benefits of a Paytm bank passbook-

  • Paytm passbook gets updated automatically
  • A user can check the transaction history at any point in time
  • Irrespective of time and place, one can access the Paytm passbook anytime and from anywhere
  • One can check the overall payment history by using the Paytm passbook
  • Paytm passbook showcases the source of payment. The source of payment can be Paytm wallet, Paytm Payments bank account or another linked account
  • Order ID can also be tracked by using the Paytm passbook
  • A user can get the overall payment history by following a few easy steps

How to Access a Paytm Payments Bank Passbook?

After opening the Paytm Payments Bank savings account, a user can access the passbook by following the given instructions-

  • Open the Paytm application
  • Locate ‘Paytm Bank’ and click on it
  • Enter the passcode and click on Passbook
  • Upon clicking, get a detailed summarized version of all the transactions made along with the flexibility to check account balance
FAQs
Is it mandatory to visit the bank to update my passbook?
To update a traditional bank passbook, a user is required to visit the bank’s branch.
Is there any fee to be paid to update my bank passbook?
There is no fee levied by banks to get the bank passbook updated.
How much time does it take to update a bank passbook?
A traditional bank passbook takes a few minutes to update the transactions; however, a digital bank passbook gets updated after every initiated or completed transaction.
How can I have a digital bank passbook?
A digital passbook is available on a bank’s mobile application.
Can I also open a Paytm Payments Bank account?
Yes, any Paytm user can open a Paytm Payments Bank savings account by completing the KYC and following the given instructions.
Is there any other way to update my bank passbook?
There isn’t any other way to update a traditional bank passbook as it can only be updated by the banking official.

0 Shares:
You May Also Like
Read More

CIF number- Why is it Important?

Opening a bank account with a bank is the safest and best option to save money while earning…
Read More

What is a CIF Number?

CIF number is a unique number that the banks assign to each customer. This number is a part…