The rule may be asinine, but the rule comes from G, not just the bank.
Why banks require unexpired ID
Federal regulations under the Customer Identification Program (CIP) require banks to verify identity with “unexpired government-issued identification” such as a driver’s license or passport
legalclarity.org. This applies especially when opening an account or when a bank is relying on a document for verification. For existing customers, banks may still require current ID to confirm you are the account holder, though some may use discretion if you explain your situation.
To most bank employees, the risk of accepting an expired id outweighs the benefit of accepting it. If breaking company rules could get an employee fired, then they should not break the rules.