RPCD.CO RRB.AML.BC.No.15 /03.05.33(E)/2011-12
August 8, 2011
All Regional Rural Banks (RRBs)
Opening of 'Small Account'
Please find enclosed a copy of the Government of India, Notification No.14/2010/F.No.6/2/2007-E.S. dated December 16, 2010, amending the Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005.
A. Small Accounts
2. In terms of Rule 2 clause (fb) of the Notification 'small account' means a savings account in a banking company where -
(i) the aggregate of all credits in a financial year does not exceed rupees one lakh;
(ii) the aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand; and
(iii) the balance at any point of time does not exceed rupees fifty thousand.
3. Rule (2A) of the Notification lays down the detailed procedure for opening 'small accounts'. RRBs are advised to ensure adherence to the procedure provided in the Rules for opening of small accounts.
B. Officially Valid Documents
4. The Notification has also expanded the definition of 'officially valid document' as contained in clause (d) of Rule 2(1) of the PML Rules to include job card issued by NREGA duly signed by an officer of the State Government or the letters issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number.
5. It is further advised that where a bank has relied exclusively on any of these two documents, viz. NREGA job card or Aadhaar letter, as complete KYC document for opening of an account (ref. Annex-II to the Guidelines on 'Know Your Customer' Norms and Anti-Money Laundering Measures' enclosed to our circular RPCD.No.RRB.BC.81/03.05.33(E)/2004-05 dated February 18, 2005) the bank account so opened will also be subjected to all conditions and limitations prescribed for small account in the Notification.
6. Accordingly, all accounts opened in terms of procedure prescribed in Rule 2A of the Notification enclosed and all other accounts opened ONLY on the basis of NREGA card or Aadhaar letter should be treated as "small accounts" subject to the conditions stipulated in clause (i) to (v) of the sub-rule (2A) of Rule 9.
7. Please acknowledge receipt to our Regional Office concerned.
Chief General Manager
Encls: as above