In an attempt to cater to all segments of society, Canara Bank has rolled out the small savings deposit account. Here, the focus of this savings account is to aid individuals that are less fortunate and do not have valid identification. Opening a small savings account has minimum requirements, yet it comes with quite a few privileges. The launch of the small savings account to the public is an attempt by the government and banks to get more people enrolled in the financial system.
Features and benefits of the Canara Bank Small Savings Bank Deposit Account
- The primary feature of the Canara Bank Small Savings Bank Deposit Account is that an individual can open a deposit account even if he/she doesn’t have valid documents.
- There are no minimum maintenance charges for the Canara Bank Small Savings Bank Deposit Account.
- Any individual that is a resident of India is eligible for the Canara Bank Small Savings Bank Deposit Account.
- Individuals can make deposits, withdrawals, payments through electronic channels, transactions and so on.
- For those who haven’t made any deposits, withdrawals, transactions - one who is basically holding an inoperative account, no charges will be levied for non-maintenance.
- Free internet online and mobile banking facilities.
- At the time of opening the account, an individual is given a passbook to keep track of one’s cash flow and balance.
- To open an account, one just needs to affix his/her signature or thumb impression in the presence of the bank manager or executive. No KYC documents are required to open the account.
Since no KYC documents are required to open the account, there are some limitations:
- At any point of the year, the balance of the account should not exceed Rs.50,000.
- The credit for a year should not exceed Rs.1 lakh.
- Withdrawals and transfers from the account should not be more than Rs.10,000 per month.
- No foreign transfers can be made to the account.
Customers who fail to adhere to these restrictions should provide their KYC documents. The bank is entitled to close the account if the customer fails to submit his/her documents.
Eligibility and documents required for the Canara Bank Small Savings Bank Deposit Account
- Any resident of India is eligible to open the Canara Bank Small Savings Bank Deposit Account.
- The objective of the account is to grant access to the financial system to individuals that do not have KYC documents. Hence, provision of documents is relaxed for the first year of opening the account.
- In the second year of running the account, the individual has to show that he/she has at least applied for any government identification and address proof.
- When opening the account, all that the individual has to do is to affix his/her signature or thumbprint in the presence of the bank manager or bank executive.
- Two recent passport size photograph has to be submitted as well.
- The application form for the Canara Bank Small Savings Bank Deposit Account can be accessed at any Canara Bank local branch or online.
Limitations of the Canara Bank Small Savings Bank Deposit Account
For the Canara Bank Small Savings Bank Deposit Account an individual doesn’t need to submit his/her’s KYC documents, the Government of India through the Reserve Bank of India has prescribed certain conditions for an individual holding a small savings deposit account.
- At no point of the year can the balance in the account exceed Rs.50,000.
- The accumulative credit through the year should not exceed Rs.1 lakh.
- Withdrawals and transfers are curtailed to Rs.10,000 a month.
- At no point can an individual receive a money or cash transfers from a foreign account.
For individuals who do not strictly follow the conditions mentioned above as prescribed by Reserve Bank of India, the bank will request the individual to submit his/her KYC documents.
The bank will be compelled to close the account immediately if no documents have been submitted within the stipulated time. For the first year of opening the account, provision of identification and address documents are relaxed. In the second year, the individual has to show that he/she has at least applied for a government-approved document to carry on holding the account.
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