March 6, 2015

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Small Account or Temporary Account under Pradhan Mantri Jan Dhan Yojana

The NDA’s government flagship financial inclusion scheme “Jan Dhan Yojana” is a nationwide initiative to each one in the economy should be financially included. This program provides easy access to the basic financial services at a very lesser cost like insurance, saving account, overdraft and more.

It provides zero balance bank account to every household. Although if  the applicant fails to provide “officially valid documents” then the responsibility lies on the shoulder of banks to ground check the applicant under Jan Dhan Yojana. In case the approached banks discover the applicant in “low risk” category he/she will be provided an option to open a temporary account or small account for 1 year. He/she may convert this temporary account in permanent account by providing valid proofs before completing 1 year tenure of bank account.

                           


For these low risk customers RBI has simplified the norms of 'know your customer' (KYC) just after the launch of Pradhan Mantri Jan Dhan Yojana. These norms states that low risk customers can tender documents of KYC within 6 months of account opening. 

This small account can be opened with a signature or thumb print and either with a self attested photo in the front of any officer of the bank. These accounts have a validity of one year. That means these accounts cannot be served beyond one year, just in case if the applicant provides the valid documents or any receipt showing he/she has applied for a valid proof within one year of account opening.
Seeing as transferred employees or migrant workers a lot counters problems at the time of proof submission of address for account opening, then it is fine if they can submit just a single proof of address either permanent or present at the time of account opening or  whilst going through periodic updation. 

If the present address is different from the address marked on the address proof then the customer can simply submit a declaration for the current address which would be sufficient.

Toll Free Number for any query for Jan Dhan Yojana
1800 11 0001
1800 180 1111


 

 

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