SBI or State Bank of India offers a range of savings accounts to retail customers. While SBI has set certain rules for its regular savings accounts - wherein the account holder is required to maintain an average monthly balance to the tune of Rs 1,000-3,000 in the account, it also offers special savings bank accounts which are free of any such requirement. SBI's small account and basic savings bank deposit (BSBD) account are two such accounts which do not restrict the account holder to maintain a specific average of daily balances in a month, according to the bank's corporate website - sbi.co.in.
Here are the key differences between the SBI basic savings account and the small savings account:
KYC (know your customer) compliance
The basic savings account is a KYC-compliant account. This means the customer is required to furnish documents according to the KYC guidelines laid out by the Reserve Bank of India (RBI). The small savings bank account is KYC-liberalised. The applicant is required to submit a self-attested photograph and provide either his or her signature or thumb impression before the officer of the bank authorised to approve opening of accounts, according to the SBI website.
Both the small savings account and the basic savings bank account can be operated without any particular balance. This means both the types of savings account can be operated with zero balance.
There is no restriction on the maximum balance that can be kept in the basic savings account. However, a maximum balance of Rs 50,000 is permitted in the small savings account, according to the SBI website.
Also, in the small savings account, the aggregate of all credits in a financial year should not exceed Rs 1 lakh, and that of all withdrawals/transfers in a month should not exceed Rs 10,000, according to the bank's website.
In case of the basic savings account, the customer cannot apply for or hold any other savings account with the bank. "If he/she has a Basic Savings Bank Deposit Account. If the customer already has a Savings Bank Account, the same will have to be closed within 30 days of opening a Basic Savings Bank Deposit Account," SBI mentions on its portal
In case of the small savings account, the account can be converted to a regular savings bank account by fulfilling the KYC requirements with the home branch, according to the SBI portal.
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