What changed
RBI expanded the definition of 'officially valid document' to include NREGA job cards and Aadhaar letters. Accounts opened solely with these documents must now be classified as 'small accounts' and adhere to the prescribed transaction limits and conditions.
What it means for you
RRBs must update their KYC procedures to treat NREGA and Aadhaar-based accounts as small accounts, imposing the specified caps on credits, withdrawals, and balances. This ensures compliance with anti-money laundering rules and standardizes account treatment across banks.
What you must do
- Classify all accounts opened with only NREGA job card or Aadhaar letter as 'small accounts'.
- Enforce transaction limits: annual credits ≤ ₹1 lakh, monthly withdrawals/transfers ≤ ₹10,000, balance ≤ ₹50,000.
- Update internal KYC and AML policies to reflect the expanded definition of officially valid documents.
- Train staff on the new small account rules and ensure adherence to Rule 2A procedures.
- Acknowledge receipt of this circular to your regional RBI office.
Who it affects
All Regional Rural Banks (RRBs), RRB customers opening accounts with NREGA job cards or Aadhaar letters, Compliance and KYC teams at RRBs
What are the transaction limits for a small account?
Total credits in a financial year cannot exceed ₹1 lakh, monthly withdrawals and transfers are capped at ₹10,000, and the account balance at any time must not exceed ₹50,000.
Which documents now qualify as officially valid for KYC?
In addition to existing documents, NREGA job cards signed by a state government officer and letters from the Unique Identification Authority of India containing name, address, and Aadhaar number are now officially valid.
What happens if an account is opened using only an NREGA card or Aadhaar letter?
Such accounts must be treated as small accounts and are subject to all the conditions and limits prescribed for small accounts, including the transaction caps.