Question

Under RBI’s KYC Directions, which category of bank account is permitted to be opened with simplified documentation (relaxed KYC norms), subject to restrictions on balance and transaction limits?

Q: Answer-Under RBI&rsquo;s KYC Directions, which category of bank account is permitted to be opened with simp...

RBI permits opening of Small Accounts with relaxed KYC requirements, mainly to promote financial inclusion. Such accounts can be opened with only a self-attested photograph and signaturethumb impression no full KYC initially. However, they come with restrictions o Maximum balance 50,000 at any time. o Aggregate credits Not more than 1,00,000 in a year. o Aggregate withdrawalstransfers Not exceeding 10,000 in a month. To continue operating beyond 12 months, the account holder must complete full KYC.