New Delhi, Dec 15

The RBI on Thursday said it will be mandatory for banks to take the PAN of holders of small accounts, or those opened by submitting the holder\'s photograph and affixing signature or thumb impression in a bank official\'s presence, where deposits after demonetisation have exceeded Rs 2 lakh and the total balance is Rs 5 lakh.

The banks and Non-banking Financial Companies have to ensure compliance towards Know your customer (KYC), including quoting of PAN or obtaining of Form 60 for accounts where \"balance is Rs 5 lakh or more and the total deposits (including credits by electronic or other means) made after November 9, 2016, exceed Rs 2 lakh\".

The small accounts will thus be converted into normal accounts, said the Reserve Bank of India (RBI).

\"No debit transaction, transfer or otherwise shall be allowed in accounts which do not comply with these requirements,\" RBI said in a statement.

These accounts have certain limitations such as balance in such accounts at any point of time should not exceed Rs 50,000, total credits in one year should not exceed Rs 1 lakh and total withdrawal and transfers in a month should not exceed Rs 10,000.

Such accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months if the account holder provides evidence of having applied for officially valid documents.

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PAN must for \'small accounts\' if deposits exceed Rs 2 lakh, balance Rs 5 lakh