If an individual customer does not possess either any of the OVDs or the documents applicable in respect of simplified procedure , then ‘Small Accounts’ may be opened for such an individual. A ‘Small Account' means a savings account in which: -
(i) The aggregate of all credits in a financial year does not exceed rupees one lakh;
(ii)The aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand;
(iii) The balance at any point of time does not exceed rupees fifty thousand.
A ‘small account’ shall be opened on the basis of a self-attested photograph and affixation of signature or thumb print. Such accounts may be opened and operated subject to the following conditions:
(a) The designated officer of the bank, while opening the small account, certifies under his signature that the person opening the account has affixed her/his signature or thumb print, as the case may be, in her/his presence;
(b) Small account shall be opened only at Core Banking Solution (CBS) linked branches or in a branch where it is possible to manually monitor and ensure that foreign remittances are not credited to the account and that the stipulated monthly and annual limits on aggregate of transactions and balance requirements in such accounts are not breached, before a transaction is allowed to take place;
(c) Small account shall remain 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 banking
company of having applied for any of the officially valid documents within twelve months of the opening of the said account, with the entire relaxation provisions to be reviewed in respect of the said account after twenty four months;
(d) Small account shall be monitored and when there is suspicion of money laundering or financing of terrorism activity or other high risk scenarios, the identity of the customer shall be established through the production of “officially valid documents” and
(e) Foreign remittance shall not be allowed to be credited into a small account unless the identity of the customer is fully established through the production of “officially valid documents”.
(f) In respect of ‘Small Accounts’, the prescribed limits/conditions shall not be breached and compliance therewith shall be strictly monitored. If any customer desires to have operations beyond the stipulated limits, the same shall be allowed only after complying with requirements for opening a normal account including completion of CDD/KYC procedures detailed in Sections 16/17 and provisions of Section 67 of the Master Direction which include quoting of PAN/Form 60 while opening an account with a bank, NBFC, etc. If any account is rendered ineligible for being classified as a small account due to credits/balance in the account exceeding the permissible limits, withdrawals may be allowed within the limit prescribed for small accounts where the limits thereof have not been breached.
(g) BSBD Accounts (PMJDY accounts are akin to BSBDAs), which are not KYC compliant accounts are to be treated as ‘Small Accounts’ and are subjected to the limitations applicable to such accounts. Hence, for allowing normal operations in such accounts, the procedures explained at (ii) above are to be complied with. If any account is rendered ineligible for being classified as a small account due to credits/balance in the account exceeding the permissible limits, withdrawals may be allowed within the limit prescribed for small accounts where the limits thereof have not been breached.
Basic Savings Bank Deposit Account
It offers following minimum common facilities to all their customers:
(i) The ‘Basic Savings Bank Deposit Account’ should be considered a normal banking service available to all.
(ii)This account shall not have the requirement of any minimum balance.
(iii) The services available in the account will include deposit and withdrawal of cash at bank branch as well as ATMs; receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Government agencies and departments;
(iv)While there will be no limit on the number of deposits that can be made in a month, account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals;
(v) Facility of ATM card or ATM-cum-Debit Card;
The above facilities will be provided without any charges. Further, no charge will be levied for non-operation/activation of in-operative ‘Basic Savings Bank Deposit Account’.
The ‘Basic Savings Bank Deposit Account’ would be subject to RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued from time to time. If such account is opened on the basis of simplified KYC norms, the account would additionally be treated as a ‘Small Account.
Holders of ‘Basic Savings Bank Deposit Account’ will not be eligible for opening any other savings bank deposit account in any branch of the Bank. If a customer has any other existing savings bank deposit account in any branch of the Bank, he/she will be required to close it within 30 days from the date of opening a ‘Basic Savings Bank Deposit Account’. Before opening such accounts, branches are advised to obtain the undertaking from the customer in this regard.
Further, an account of the student beneficiary could be opened as a “Basic Savings Bank Deposit Account”, if he/she submits documents issued by the School Authorities or parents of the student for KYC purpose.
In case of difficulty in opening “Basic Savings Bank Deposit Account”, from Financial Inclusion point of view, the account could also be opened either as a “Small Account” or “Account with only relaxed KYC norms” as operations in the account will fall within ceilings prescribed by the RBI for such accounts.
Keeping in view of the above, branches are advised to open either ‘Basic Savings Bank Deposit Account’ with full KYC norms or ‘Small Accounts’ with relaxed KYC Norms of the students for receiving benefits under Government Schemes with an initial amount of Rs.10/- (Rs.Ten Only). Small Accounts opened with relaxed norms will fall within ceilings prescribed by RBI for such accounts. Other guidelines w.r.t. Basic Savings Bank Deposit Account / Small Accounts will be same as referred above.
Financial Inclusion – Access to Banking Services-Basic Savings Bank Deposit Account – Up gradation of No Frill Accounts. It was also advised that the existing basic banking ‘no-frills’ accounts should be converted to ‘Basic Savings Bank Deposit Account’ as per the instructions given above.
Saving Bank account
These accounts are designed to help the individuals (personal customers) to inculcate habit of saving money and to meet their future requirement of money. The amount can be deposited / withdrawn from these accounts by way of cheques / withdrawal slips. The withdrawals are restricted to 50 entries each half-year in the S.B. Account.
·Saving Bank accounts are very popular. These accounts can be opened by eligible person(s) and certain organization(s) / agencies as approved by the Reserve Bank of India (RBI).·
· As required by law, while opening this account, we satisfy ourselves about the identity, including verification of address, of a person(s) seeking to open an account and to assist in protecting our prospective customer(s) and ourselves against fraud and other misuses of the banking system.
· We are required to obtain two recent photographs of the person(s) opening the account, as per R.B.I. directives.
· We are required to obtain Aadhaar and Permanent Account Number (PAN) or alternatively obtain declaration in Form No. 60 or 61 as per the Income Tax Act (vide Section 139 A) from the person(s) opening the account.
· We provide to the prospective customers details of the documents required for identification of the person(s) opening the account.
|Minimum Balance in Account|
|For all branches other than rural||
Where cheque Book is not issued Rs. 500/-
Where cheque Book is issued Rs. 1000/-
|(ii) Rural Branches:- Rs.500/-||
+ Any Amount can be deposited.
Rate of Interest / Eligibility for payment of interest
|Rate of Interest w.e.f. 04.09.2017||Payment schedule|
|Upto 20 Lakhs - 3.5%, Above 20 Lakhs - 4% .||Payable on quarterly rest on Daily product basis from 1st April 2016|