Here are 10 things to know about SBI's small accounts:
There is no minimum balance requirement for the SBI small account. The maximum balance amount that can be maintained in this account is Rs 50,000.
If the balance exceeds Rs 50,000 or total credit in the account exceeds Rs 1,00,000 in a year, no further transaction is permitted until the full KYC procedure is completed, according to the SBI website.
Aggregate of all withdrawals and transfers in a month should not exceed Rs 10,000 in case of a small account.
Account holders are allowed a maximum of four withdrawals in a month, including ATM withdrawals at SBI and other banks' ATMs.
SBI offers the same interest rates on small account as on regular savings bank accounts. The bank offers an interest rate of 3.25 per cent per annum on deposits less than Rs 1 lakh.
SBI issues a basic RuPay ATM-cum-debit card for free to holders of the small account.
No annual maintenance charge is to be paid for SBI's small account. Receipt/credit of money through electronic payment channels like NEFT/RTGS is free. The deposit/collection of cheques drawn by central/state government is also free. There are no account closure charges for an SBI small account.
Foreign remittances are not allowed to be credited into SBI's small account unless the identity of the client is fully established through officially valid documents.
A small account remains operational initially for a period of twelve months, and thereafter for a further period of twelve months if the holder of such an account provides evidence before the bank of having applied for any officially valid documents within twelve months of the account opening.
The conversion of small account into a regular savings bank account or basic savings bank deposit account (at the option of the customer) is done by the home branch manually on full compliance with KYC requirement. After such conversion, the same account number continues, according to SBI.