State Bank of India (SBI), the largest commercial lender of the country, offers a zero balance savings account, which can be opened even without valid know-your-customer (KYC) documents. Banks follow a strict KYC procedure before customers open their accounts. However, SBI's small account can be opened by anyone who does not have valid KYC documents, provided he/she is above 18 years of age, the lender says. After the account holder submits the documents, the small account can be converted into a savings account upon submission of KYC documents.
Here are key things you should know about SBI's small account:
Requirements: In order to open SBI's small account, you need to submit a self-attested photograph and affix signature or thumb impression before the officer of the bank who is authorized to approve opening of accounts, says SBI.
Minimum, maximum balance: You can maintain zero balance in SBI's small account but the maximum balance that can be maintained is Rs 50,000.
Rate of interest: The rate of interest that SBI pays on this account is the same as on savings accounts i.e. 3.50 per cent per annum for balances up to Rs 1 crore and 4 per cent per annum for balances above Rs. 1 crore, according to sbi.co.in.
Service charges: SBI issues a basic RuPay ATM-cum-debit card for free to holders of the small account. No annual maintenance charge is applied on this account. The receipt/ credit of money through electronic payment channels like NEFT/RTGS, along with deposit/ collection of cheques drawn by central/state government, is free. When you want to close the account, there are no closure charges.
Conditions under SBI's small account:
1. The balance at any point of time should not exceed Rs 50,000 in this account, says SBI.
2. The aggregate of all withdrawals and transfers in a month from the small account should not exceed Rs 10,000.
3. The aggregate of all credits in a financial year should not exceed Rs. 1 lakh, the lender said.
4. If the balance exceeds Rs. 50,000 or the total credit in the account exceeds Rs. 1,00,000 in a year, no further transaction will be permitted until the full KYC procedure is completed, says SBI.
5. A maximum of four withdrawals in a month, including ATM withdrawals at own and other bank's ATMs and transactions through other modes including RTGS/NEFT/clearing/branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc are allowed.
6. No further customer debits are allowed during the month.
7. Foreign remittances are not allowed to be credited into SBI's small account unless the identity of the client is fully established through the production of officially valid documents.
8. SBI small account initially remains operational for a period of twelve months, and thereafter for a further period of twelve months if the holder of the account provides evidence before the bank of having applied for any of the officially valid documents within twelve months of opening of the account. The entire relaxation provisions are reviewed in respect of the said account after 24 months.
9. If KYC documents are not submitted to SBI within 24 months of opening of the account, no further transaction other than closure of the account will be permitted.
10. 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, says SBI.