If you over 18 years of age and do not have a valid identity proof or PAN, the State Bank of India (SBI) still allows you to access the banking system. With SBI's Basic Savings Bank Deposit Small Account, also known as SBI Small Account, one can open a zero-balance savings bank account without having valid KYC documents, as per the bank's website.
Features of SBI Small Account
The non-compliance of KYC (Know Your Customer) procedure puts a number of restrictions on the operations of the savings bank account services provided. Note that this account can be converted into a regular full-service savings account on submission of KYC documents required.
- No minimum balance requirements.
- Maximum balance to can be maintained is Rs 50,000. If the balance exceeds Rs 50,000 or if credit on the account exceeds Rs 1 lakh in a year, no further transactions will be allowed until full KYC procedure is completed.
- Interest earned on balance maintained in an SBI small account is the same as that of a regular savings bank account held with the bank.
- A RuPay ATM-cum-debit card will be given to the customer for free on opening this account.
- Transfer or withdrawals in a month should not collectively exceed Rs 10,000 in case of a small account.
- No annual maintenance charges.
- Can be opened as a single account or jointly, or with either or survivor, former or survivor, anyone or survivor, etc.
- Only a maximum of 4 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 would be allowed. On reaching the maximum limit, further customer debits would not be allowed during the month.
- Foreign Remittances are not allowed to be credited into an SBI Small Account unless the identity of the client is fully established through the production of officially valid documents.
- The 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.
- If KYC documents are not submitted to the Bank within 24 months of opening of the account, no further transaction other than for closure of the account will be permitted.
- One can convert the SBI Small Account to regular Savings Bank account or Basic Savings Deposit Account. The conversion would be done by the home branch manually on full compliance with KYC requirement. After such conversion, the same account number will continue.
- Since the Small Account facility is primarily meant for the poorer sections of society to encourage them to start saving without any burden of charges or fees, there are no account closure charges.
At the time of opening the SBI Small Account, the customer will have to submit a self-attested photograph and affix his/her signature or thumb impression before the officer of the bank who is authorized to approve the opening of accounts.