KYC norms: one address proof enough to open new bank a/c

KYC norms: one address proof enough to open new bank a/c

KYC norms: one address proof enough to open new bank a/c

The Reserve Bank of India (RBI) has eased KYC (Know Your Customer) norms by stipulating that anyone seeking to open a  new bank account needs to simply submit a declaration detailing current or permanent address while opening a bank account or undergoing periodic updation.

The central bank’s move will benefit millions living in rented accommodations. In a notification issued early this week, RBI said, “No proof is required to be submitted for such addresses for correspondence. This address may be verified by the bank through ‘positive confirmation’ such as acknowledgment of receipt of (i) letter, cheque books, ATM cards; (ii) telephonic conversation; (iii) visits; etc.”

What’s more, the regulator has asked banks to revise their KYC rules with immediate effect. “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 central bank said.

“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.”

Currently, RBI norms mandate that customers wanting to open bank accounts submit identity proof like PAN card, voter ID, driving licence or any other identity, along with utility bills that detail the permanent address of a customer such as telephone bill, electricity bill or ration card.

Further, RBI clarified that in case a customer stays away from his permanent residence, a simple declaration by the customer detailing his or her local address will suffice to open a new bank account. “Any change in the local address of the customer should be intimated to the bank” within two weeks of such a change”, it added.

The change has been made following “representations from various quarters, especially migrant workers and transferred employees, etc., regarding problems faced in submitting proof of current/permanent address while opening a bank account”, the central bank said.

The move will benefit many migrants who face difficulty in opening bank accounts in the cities where they work, said a PSU banker.