SBI or State Bank of India, the country's largest lender, offers a special type of savings account under its personal banking portfolio. SBI's small bank account is aimed at customers who do not have KYC (Know Your Customer) documents, however are many restrictions in the operation of the account, according to SBI's corporate 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, according to SBI. Upon submission of KYC documents, the account can be converted to a regular savings account. An individual above 18 years of age can open the account singly, jointly, or with either or survivor.
Here are five things to know about SBI's small account:
1. Minimum balance: Customers do 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, according to the bank's portal.
2. Return: 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.
3. Transaction 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 limited to Rs. 1 lakh.
4. ATM facility: Small account holders also get basic RuPay ATM-cum-debit card free of cost and do not need to pay an annual maintenance charge. Receipt/credit of money through electronic payment channels like NEFT/RTGS is also free.
5. ATM rules: Individuals are allowed a maximum of four withdrawals in a month, including ATM withdrawals at own and other bank's ATMs, according to the SBI website. One also doesn't need to pay account closure charges.
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