Opening a Savings Bank Account at the State Bank of India (SBI) with Aadhaar Card and No PAN

The State Bank of India (SBI) allows individuals to open a savings bank account without a PAN card under certain conditions. This guide will outline the specific requirements and limitations to help you decide whether opening a basic saving account or a full-fledged savings account is right for you.

Can I Open a Savings Bank Account Without a PAN Card?

Yes, you can open a basic savings bank account (SBA) without a PAN card if you are not under the purview of income tax transactions below 50,000 at a time. However, please note that this basic account will have limited functionality. It is recommended to apply for a PAN card and open a full-fledged savings account for broader access and functionalities.

Basic Savings BankDeposit Account (BSBD) without PAN Card

You can open a basic savings bank deposit account (BSBD) without a PAN card by submitting Form 60. For cash transactions above 50,000, an ATM card is required. Additionally, it is important to ensure that all accounts are now linked with an Aadhaar card as per stipulated regulations.

Requirements for Opening an Account

To open a bank account, you must submit the appropriate KYC (Know Your Customer) documents that verify your personal identity and residential address. If your present address is the same as mentioned in your Aadhaar card, you can open a savings bank account with only an Aadhaar card at SBI or any other bank.

Aadhaar Card Sufficiency:

The Aadhaar card is sufficient to open an account. If there is a change in address, you can submit a simple letter of declaration quoting your current address. However, you will need a PAN card to conduct high-value cash transactions. Therefore, it is advisable to apply for a PAN card as well.

Jan Dhan Yojana Account

Under the Jan Dhan Yojana scheme, you can open a bank account without a PAN card by providing only the Aadhaar card. However, this account will have some restrictions:

Account Balance: Should be below Rs 50,000 Cheque Book: Will not be issued Internet Facility: Not provided Rs 10,000 at a time Passbook and ATM: Provided for smooth account operation

It is mandatory to produce a PAN card for certain banking transactions as per the Income Tax Act. If you do not have a PAN card, you must submit Form 60 to open an account. A PAN card is required for the following banking transactions:

Cash payment over Rs 50,000 TDS deduction on interest income (20% tax) Application for debit and credit cards Apply for loans Purchasing bank drafts, pay orders, and bankers' cheques

Conclusion

While it is possible to open a savings bank account with only an Aadhaar card, it is advised to apply for a PAN card for broader access and functionality. Always ensure to fulfill the regulatory requirements to avoid any complications in banking transactions.