With the approval of Reserve Bank of India, NREGS job cards or Aadhaar letters would now act as sufficient proof for opening bank accounts with rural cooperative banks.

With this step, workers and job card holders will now have an option to safely keep their hard earned money.

The apex bank has however said that accounts can only be opened only under strict adherence to RBI guidelines so as to prevent any kind of money laundering activities.

RBI mandates that only small accounts can be opened under this process. The NREGS job card or Aadhaar letter has to be duly signed by an officer from the the Unique Identification Authority of India.

Small accounts refers to one where total credit in a fiscal does not exceed Rs 1 lakh.