Bank account opening problem? Do not let it stop you, check out Small Account
A person can open a Small Account on the basis of a self-attested photograph and putting his/her signatures or thumbprint in the presence of an official of the bank. It is reiterated that while opening accounts based on Aadhaar also, banks must satisfy themselves about the correct address of the customer by obtaining required proof of the same as per extant instructions.
If you don't have a valid document to open a bank account then, no need to worry as you still have another option. Even though valid documents are required to be submitted for KYC (know your customer) while opening a bank account, there are certain conditions that allow you to open a small account with the bank without having valid documents. According to the Reserve Bank of India (RBI) guidelines, those persons who do not have any of the ‘officially valid documents' can still open a "Small Accounts" with banks.
A person can open a "Small Account" on the basis of a self-attested photograph and putting his/her signatures or thumbprint in the presence of an official of the bank. It is reiterated that while opening accounts based on Aadhaar also, banks must satisfy themselves about the correct address of the customer by obtaining required proof of the same as per extant instructions.
What are small accounts?
'Small account' means a savings account in a banking company where the aggregate of all credits in a financial year do not exceed rupees one lakh. The aggregate should not withdraw and transfer money in a month exceeding Rs 10000 (ten thousand) and also the balance at any point of time does not exceed Rs 50000 (fifty thousand) into the bank account. It is also important that the person should not exceed the transactions as it will be permitted until the full KYC procedure is completed.
To avoid any inconvenience to the customers, the bank must notify them when the balance reaches Rupees Forty Thousand (Rs. 40,000/-) or the total credit in a year reaches Rupees Eighty thousand (Rs. 80,000/-) that appropriate documents for conducting the KYC must be submitted otherwise operations in the account will be stopped.
Watch Zee Business video here:
These accounts would be valid normally for a period of twelve months. Thereafter, such accounts would be allowed to continue for a period of twelve more months, if the account-holder provides a document showing that he/she has applied for any of the Officially Valid Document, within 12 months of opening the small account.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.