KYC norms for opening of bank accounts simplified by RBI

Making opening a bank account less cumbersome than earlier, the RBI has said that accounts can now be opened with just one address proof, permanent or local. This decision has been taken keeping in mind the banking needs of migrant workers and employees with transferable jobs who currently face cumbrous procedure to access banking services.

As per RBI:

  • From now onwards, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic update.
  • 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 6 months.
  • In cases where customer is not able to submit local proof of address, the bank may accept a declaration of the local address on which all correspondence will be made by the bank with the customer. Customers are not required to submit any proof for such address for correspondence/local address. Bank may verify this address through positive confirmation such as acknowledgment of receipt of letter, cheque books, ATM cards, telephonic conversation.
  • If the address for correspondence undergoes a change, the customer may inform about the new address to the bank within 2 weeks of such a change.



Categories: Business, Economy & Banking



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