In order to increase the access to the banking services the apex bank of the country – RBI has asked the banks to allow the people to open the account even if they don’t have complete identity proofs and documents. Without the need of the necessary documents people should be allowed to open small accounts.
According to the reports half of the citizens of the country do not posses any banking account. So to make the banking facilities accessible to all the people RBI has advised banks to open small accounts which can be opened just by filling up a form, signing it in front of the bank officer and submitting a self attested photograph.
However the small accounts will have certain restrictions there will be no foreign remittance, will be available only for 12 months, limitations on credit/ debit balances. The aggregate of all withdrawals and transfers in a month cannot exceed Rs. 10,000; and the balance at any point in time should not exceed Rs. 50,000.