The State Bank of India (SBI) offers a zero balance savings account, which can be opened by customers even without having know-your-customer (KYC) documents. SBI’s Basic Savings Bank Deposit Small Account or SBI small account can be opened by anyone who does not have valid KYC documents, provided he or she is above 18 years of age, the lender said on its website .
Here are ten things to know about SBI’s small account:
1) There is no minimum balance requirement for the SBI small account. The maximum balance amount that can be maintained in this account is ₹50,000.
2) If the balance exceeds ₹50,000 or total credit in the account exceeds ₹1,00,000 in a year, no further transaction will be permitted until the full KYC procedure is completed.
3) SBI small account holders are allowed a maximum of four withdrawals in a month, including ATM withdrawals at own and other bank’s ATMs and transactions through other mode including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc. No further customer debits would be allowed during the month.
4) SBI issues a basic RuPay ATM-cum-debit card free of cost to account holders, and no annual maintenance charge is to be paid for SBI’s small account.
5) SBI small account shall remain operational initially for a period of 12 months, and thereafter for a further period of 12 months if the holder of such an account provides evidence before the bank of having applied for any of the officially valid documents within twelve months of the opening of account, with the entire relaxation provisions to be reviewed in respect of the said account after 24 months.
6) Aggregate of all credits in a financial year should not exceed ₹1 lakh in case of a small account.
7) There are many restrictions in operation of the account due to the relaxed KYC.
8) The account can be converted to regular savings account upon submission of KYC documents.
9) SBI offers the same interest rate on small account as on regular savings bank accounts. The bank offers an interest rate of 3.25% per annum on deposits less than ₹1 lakh.
10) 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.