The State Bank of India now offers a zero balance savings account which can be opened by any customer above the age of 18 years without submitting valid Know Your Customer (KYC) documents.
However, there are many restrictions over the operation of the account -- known as a Small Account -- due to the relaxed KYC policy. The bank has introduced this account primarily for poorer sections of society to encourage them to start saving without any burden.
You can always convert the account into a regular savings account upon submission of KYC documents.
Who can open a Small Account?
What is required to open a Small Account?
Submission of a self-attested photograph
Affixation of signature or thumb impression in front of the bank officer who is authorised to approve the opening of the Small Account.
How to operate the account?
Your balance should not exceed Rs 50,000 and the aggregate of all the withdrawals and money transfers should not exceed Rs 10,000 per month.
An aggregate of all credits should not exceed Rs 1 lakh in a year.
If the balance exceeds Rs 50,000 or total credit in the account exceeds Rs 1 lakh in a year, then no further transaction will be permitted until you submit all your KYC documents.
You can make a maximum of 4 withdrawals in a month including withdrawals from your own and other banks' ATMs and transactions through other modes including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMI etc.
Foreign remittances cannot be credited into a Small Account unless you furnish all your KYC documents.
If you wish to convert the Small Account to a regular savings bank account, it can be done by the home branch manually on submission of your KYC documents. After the conversion, your account number will remain the same.
How long will this Small Account be operational?
The Small Account will remain operational initially for a period of twelve months, after which it will be extended for another twelve months if the account holder provides evidence before the Bank of having applied for any of the officially valid KYC documents within twelve months of the opening of the account.
If the account holder fails to provide such proof at the end of one year, then the validity of his/her Small Account will not be extended for another twelve months.
Also, if the KYC documents are not submitted to the bank within 24 months of opening of the Small Account, then no further transaction other than for closure of the account will be permitted.
What are the charges for this account?
Basic RuPay ATM-cum-debit card will be issued free of cost and no annual maintenance charge will be applied.
Receipt/credit of money through electronic payment channels like NEFT/RTGS will be free.
Deposit/collection of cheques drawn by the central/state government will be free.
No account closure charges.