Thursday, November 21News That Matters

RBI allow to open Bank Accounts without valid documents

rbi

The Reserve Bank of India has recenlty allowed that small accounts with banks can be opened even without officially valid documents.

In a circular posted on its website, the banking regulator has said that a small account can be opened on the basis of

  • a self-attested photograph and
  • putting the prospective account holders’ signature or thumb print in the presence of an official of the bank.

However such accounts will have restricted transactions facilities.

  • Aggregate credits will not be more than Rupees one lakh in a year.
  • While aggregate withdrawals are not to exceed Rs 10000 in a month and
  • balance in the accounts cannot be more than Rs 50,000 at any point in time.

These small accounts would be valid normally for a year after which such accounts would be allowed to continue for a further period of twelve more months, if the account holder provides a document showing that she/he has applied for any of the officially valid document, within twelve months of opening the small account.

Officially valid documents for know your customer or KYC purpose include a passport, driving licence, voters’ ID card, PAN card, Aadhaar letter issued by UIDAI and Job Card issued by NREGA signed by a State Government official.

RBI Press release – 2014-2015/410 dated 26 Aug 2014

https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=31935

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