State Bank of India (SBI), the country's largest lender, offers the facility of small account, which is for customers who do not have KYC (Know Your Customer) documents. However, there are many restrictions in operation of the account due to the relaxed KYC norms, said SBI on its official website - sbi.co.in. This type of account is primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees. However, upon submission of KYC documents, SBI's small account can be converted to regular savings account, said the bank. Interest rates of SBI's small account are similar to that of regular savings bank accounts. The bank offers an interest rate of 3.50 per cent per annum.
Here are key things to know about SBI's Small account:
1. Mode of operation: Customers above 18 years of age can open SBI's small account singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc.
2. Amount: One does not require to maintain an average minimum balance (AMB) in this account. The maximum balance amount that can be maintained in small account is Rs. 50,000. If the balance exceeds Rs. 50,000 or total credit in the account exceeds Rs. 1 lakh in a year, no further transaction is permitted until the full KYC procedure is completed, noted SBI.
3. Withdrawal and transfer limit: Aggregate of all withdrawals and transfers in a month should not exceed Rs. 10,000, and the aggregate of all credits in a financial year is restricted to Rs 1 lakh.
4. ATM card: Customers get basic RuPay ATM-cum-debit card free of cost and no annual maintenance charge is to be paid for SBI's small account. Receipt/credit of money through electronic payment channels like NEFT/RTGS are also free.
5. Other facilities: Account holders are allowed a maximum of four withdrawals in a month, including ATM withdrawals at own and other bank's ATMs. One also doesn't need to pay account closure charges.
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.