The threshold limits for different types of bank accounts at Punjab National Bank according to the self-declaration form are: 1,00,000 for Small Account (SBSML), 2,00,000 for both BSBDA Account (SBBDA) and accounts opened at BC locations (SBBDA), and accounts opened using OTP based e-KYC in non-face-to-face mode, 10,00,000 for Saving General Account (SBGEN), and 25,00,000 for Current Account (CAGEN).

The threshold limit for Savings General Accounts is 10,00,000 rupees, while the limit for Current Accounts is significantly higher at 25,00,000 rupees. This difference reflects the typical usage, where Current Accounts are used by businesses requiring larger transaction capabilities, whereas Savings Accounts are intended for individuals with moderate financial activity .

An individual without documentary proof must fill out a self-declaration form specifying their professional status (e.g., Student, Housewife, Pvt. Employee) and declare their annual income or expected annual credit. This declaration will inform the type of account they can open and the respective threshold limits .

Accounts opened using OTP based e-KYC in a non-face-to-face mode include BSBDA Accounts, and they have a threshold limit of 2,00,000 rupees .

The different threshold limits for accounts opened at BC (Business Correspondent) locations, which are 2,00,000 rupees, reflect the bank's intention to promote financial inclusion while maintaining tight controls on risk. BC locations often serve rural or underserved areas. Having a uniform threshold with non-face-to-face e-KYC methods ensures consistency in managing financial exposure and combating potential misuse .

Implementing a threshold limit based on self-declared professional activity and income helps Punjab National Bank manage risk and ensure compliance with anti-money laundering regulations by maintaining control over accounts that may not have formal proofs of income. This can prevent misuse of accounts for fraudulent activities. However, drawbacks may include inconveniencing genuine customers who lack formal income documentation, possibly limiting financial access for low-income or informal sector workers .

Allowing individuals to specify their professional status on the self-declaration form helps tailor banking products and services according to customer needs and ensures that accounts are managed with appropriate risk measures. For instance, different professions may have varying levels of income and transaction needs, and specifying this facilitates better customer service and policy compliance .

The declaration form allows individuals to self-declare their professional status and annual income in the absence of documentary proof. They must specify their profession (e.g., Student, Housewife, Pvt. Employee, or Other) and declare their annual income or expected annual credit. This self-declaration then determines the threshold limit applicable to their account category .

The self-declaration form ensures KYC compliance by collecting basic customer information and income declarations necessary for opening accounts without formal documentation. This allows the bank to meet regulatory requirements while offering financial services to customers who may not have conventional income proofs, ensuring broader access to banking services .

Self-declaration forms can enhance financial inclusion by allowing individuals, particularly from the informal sector or those with irregular incomes, to access banking services without traditional income documentation. This can help integrate more people into the financial system, promote savings, and provide a gateway to other financial products. However, it also requires robust risk management to prevent fraud and money laundering .