RBI simplifies KYC norms for opening of bank accounts

Tags: News
A bank account can be opened with just one address proof, permanent or local, says an RBI decision that will help migrant workers and employees with transferable jobs who at present face cumbersome procedure to access banking services.

"Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation," the Reserve Bank (RBI) said in a notification today.

"In case the address mentioned as per 'proof of address’ undergoes a change, fresh proof of address may be submitted to the branch within a period of six months," it said.

RBI was receiving representations and references from various quarters, including migrant workers, transferred employees about the problems faced by them in submitting a proof of address while opening a bank account, the notification said.

In cases where customer is not able to furnish local proof of address, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer, it said.

"No proof is required to be submitted for such address for correspondence/local address. This address may be verified by bank through positive confirmation such as acknowledgment of receipt of letter, cheque books, ATM cards, telephonic conversation," the apex bank said.

If there is a change in address, customer may intimate the new address for correspondence to the bank within two weeks of such a change, it added.

It further asked banks to revise their KYC policy and ensure strict adherence to the revised guidelines.

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