State Bank of India (SBI), the country's largest lender, offers the facility of small account. This account is for customers who do not have KYC (Know Your Customer) documents, said SBI on its official website - sbi.co.in. However, there are many restrictions in operation of the account due to the relaxed KYC. 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, further said SBI. Small account, however, can be converted to regular savings account upon submission of KYC documents. Interest rates of SBI's small account are similar to that of regular savings bank accounts.
Here are key things to know about SBI's Small account:
1. SBI's small account can be opened singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc facility by any individual who is above 18 years of age.
2. One does not require to maintain an average minimum balance (AMB) in this kind of 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. 1,00,000 in a year, no further transaction is permitted until the full KYC procedure is completed, according to SBI.
3. Aggregate of all withdrawals and transfers in a month should not exceed Rs 10,000, said SBI and the aggregate of all credits in a financial year is limited to Rs 1 lakh.
4. Customers also 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 free.
5. 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.