RBI simplifies KYC norms ahead of Jan Dhan Yojana launch

Ahead of the launch of the Prime Minister’s Jan Dhan Yojana on Thursday as part of government’s financial inclusion programme, Reserve Bank of India (RBI) announced simplified ‘know your customer’ (KYC) norms for low-risk customers.

As per the initiative, the RBI also released a note and a poster to increase awareness about KYC norms for opening bank accounts by the common man. According to the note, low-risk customers can provide KYC documents within six months of opening the account.

Prime Minister Narendra Modi will launch Jan Dhan Yojana, a mega financial inclusion plan under which bank accounts and RuPay debit cards with inbuilt insurance cover of Rs 1 lakh will be provided to crores of people with no access to formal banking facilities.

The scheme will be launched by Prime Minister Narendra Modi on completion of 100-days of the new government. Through this account the underprivileged will get subsidies, insurance cover, and overdraft facilities.

Those persons who do not have any of the officially valid documents’ can open ‘small accounts’ with banks.  A ‘small account’ can be opened on the basis of a self-attested photograph and either a signature or thumb print in the presence of an official of the bank.

Public sector banks, according to an official release, will organise more than 60,000 camps in rural and urban areas on the launch day. The scheme seeks to provide two accounts to 7.5 crore identified households by August 2018.

On the occasion of the launch, Prime Minister will also visit an exhibition on Technology and Financial Literacy will be organised in the capital. A film on ‘Financial Inclusion’ will also be screened and the Prime Minister will unveil a Logo and a Mission Document on Financial Inclusion. He will dedicate the mobile banking facility on the basic mobile phone  to the nation.

RBI note also says that there will noe be any KYC verification of all members of a Self Help Group and giving a one-month period for furnishing proof of local address for foreign students. In case a customer categorised as low risk is unable to submit the KYC documents due to genuine reasons, he may submit the documents to the bank within a period of six months from the date of opening account.