Opening a bank account was nearly impossible without a valid address proof. With the introduction of Jan Dhan accounts the economically backward sections of the society were able to enroll and open bank accounts. However, a lot of Indian still faces the same problem every day due to the lack of proper documents and hopes for a simpler documentation process.
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The SBI has taken a step ahead and simplified the KYC norms to make the account opening process easier. The SBI is now allowing customers to open zero balance savings accounts (also known as a small accounts) without submitting KYC documents. Individuals above 18 years of age take advantage of this facility and open small bank accounts. The bank has established certain guidelines over the operation of these accounts due to the relaxed KYC policy. The main aim of the scheme is the financial inclusion of the poorer sections of society.
The SBI offers the opportunity to migrant workers or economically backward sections of the society to open zero balance accounts without submitting KYC documents. Such individuals can operate the account for a year and can convert it into a regular savings account by submitting KYC or proof of identity within one year. Individuals above 18 years of age are eligible to open a zero balance account in a single name or under joint names.
See Also: What is a Savings Bank Account?
To open the zero balance account you have to visit your nearest SBI branch and contact the bank executive. You can open the bank account by submitting a self-attested photograph and an application with a simple declaration of their residential address.
The customer must put his thumb impression on the application in the presence of the bank executive. Once the process is completed, a small bank account will be opened in the customer’s name.
The zero balance accounts are mandated to remain operational for the initial 1 year, within which the account holder must submit KYC documents to the bank. if the accountholder submit the KYC documents then the account will be further extended to another 12 months,
If the account holder fails to abide by the guidelines and does not submit the KYC details within or at the end of 12 months from opening zero balance account then the account will not get an extension of another 12 months.
Also, if the account holder fails to submit documents within 24 months of opening the small account, then the bank will not allow further transactions. The bank will only allow transactions required for closing the account.
Usually, these zero balance accounts do not require the individual to pay maintenance charges or keep a minimum balance. Given below are complete details of charges associated with these accounts:
See Also: Features of an SB account
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