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      Question

      For promoting financial inclusion, RBI introduced

      Relaxed (or Simplified) KYC norms to open bank accounts. Which of the following statement/s is/are correct about “Small Accounts” opened under Simplified KYC? i. Maximum balance allowed in such accounts is Rs.50,000 ii. Total credits in one year should not exceed Rs.1,00,000 iii. Total withdrawal and transfers in a month should not exceed Rs.25,000 iv. Only inward foreign remittance is allowed in these accounts
      A Only i and ii Correct Answer Incorrect Answer
      B Only i, ii and iii Correct Answer Incorrect Answer
      C Only ii, iii and iv Correct Answer Incorrect Answer
      D Only i, ii and iv Correct Answer Incorrect Answer
      E All the above Correct Answer Incorrect Answer

      Solution

      The ‘Small Accounts’ have certain limitations such as: •balance in such accounts at any point of time should not exceed Rs.50,000 •total credits in one year should not exceed Rs.1,00,000 •total withdrawal and transfers in a month should not exceed Rs.10,000 •Foreign remittances cannot be credited to such accounts. Such accounts 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 to the bank of having applied for any of the officially valid documents within twelve months of the opening of such account.

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