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PRESSRELEASES
(127kb)
Date:Aug26,2014
RBIsRecentsimplifiedKYCMeasuresForPublicAwareness
TheReserveBankofIndiatodayreleasedanotealongwithaposterandabookletcomprisingafewcommonquestionsrelatingtoKnowYourCustomer(KYC)
norms for opening bank accounts. The objective of this is to bring awareness among the general public about the KYC simplification measures taken by the
ReserveBankintherecenttimeswithaviewtohelpingthecommonmaninopeningbankaccounts.
Measurestakenforsimplification:
1.Singledocumentforproofofidentityandproofofaddress
Thereisnownorequirementofsubmittingtwoseparatedocumentsforproofofidentityandproofofaddress.Iftheofficiallyvaliddocumentsubmittedforopening
abankaccounthasboth,identityandaddressoftheperson,thereisnoneedforsubmittinganyotherdocumentaryproof.
Officiallyvaliddocuments(OVDs)forKYCpurposeinclude:Passport,drivinglicence,votersIDcard,PANcard,AadhaarletterissuedbyUIDAIandJobCard
issuedbyNREGAsignedbyaStateGovernmentofficial.
Tofurthereasetheprocess,theinformationcontainingpersonaldetailslikename,address,age,gender,etc.,andphotographsmadeavailablefromUIDAIasa
resultofeKYCprocesscanalsobetreatedasanOfficiallyValidDocument.
2.Noseparateproofofaddressisrequiredforcurrentaddress
Sincemigrantworkers,transferredemployees,etc.,oftenfacedifficultieswhilesubmittingaproofofcurrentaddressforopeningabankaccount,suchcustomers
cansubmitonlyoneproofofaddress(eithercurrentorpermanent)whileopeningabankaccountorwhileundergoingperiodicupdation.Ifthecurrentaddressis
differentfromtheaddressmentionedontheproofofaddresssubmittedbythecustomer,asimpledeclarationbyher/himabouther/hiscurrentaddresswouldbe
sufficient.
3.NoseparateKYCdocumentationisrequiredwhiletransferringaccountsfromonebranchtoanotherofthesamebank
Once KYC is done by one branch of the bank, it is valid for transfer of the account to any other branch of the same bank. The customer would be allowed to
transferher/hisaccountfromonebranchtoanotherbranchwithoutrestrictionsandonthebasisofdeclarationofhis/herlocaladdressforcommunication.
4.SmallAccounts
Thosepersonswhodonothaveanyoftheofficiallyvaliddocumentscanopensmallaccountswithbanks.Asmallaccountcanbeopenedonthebasisofa
selfattested photograph and putting her/his signature or thumb print in the presence of an official of the bank. Such accounts have limitations regarding the
aggregatecredits(notmorethanRupeesonelakhinayear),aggregatewithdrawals(notmorethanRupeestenthousandinamonth)andbalanceintheaccounts
(not more than Rupees fifty thousand at any point in time). These small accounts would be valid normally for a period of twelve months. Thereafter, such
accountswouldbeallowedtocontinueforafurtherperiodoftwelvemoremonths,iftheaccountholderprovidesadocumentshowingthatshe/hehasappliedfor
anyoftheofficiallyvaliddocument,withintwelvemonthsofopeningthesmallaccount.
5.Relaxationregardingofficiallyvaliddocuments(OVDs)forlowriskcustomers
Ifapersondoesnothaveanyoftheofficiallyvaliddocumentsmentionedabove,butifiscategorisedaslowriskbythebanks,thenshe/hecanopenabank
accountbysubmittinganyoneofthefollowingdocuments:
(a) identity card with applicant's photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings,
ScheduledCommercialBanks,andPublicFinancialInstitutions
(b)letterissuedbyagazettedofficer,withadulyattestedphotographoftheperson.
6.PeriodicupdationofKYC
TimeintervalsforperiodicupdationofKYCforexistinglow/mediumandhighriskcustomershavebeenincreasedfrom5/2yearsto10/8/2years,respectively.
7.Otherrelaxations
i. KYCverificationofallthemembersofSelfHelpGroups(SHGs)isnotrequiredwhileopeningthesavingsbankaccountoftheSHGandKYCverification
ofonlytheofficialsoftheSHGswouldsuffice.NoseparateKYCverificationisneededatthetimeofcreditlinkingtheSHG.
ii. Foreignstudentshavebeenallowedatimeofonemonthforfurnishingtheproofoflocaladdress.
iii. In case a customer categorised as low risk is unable to submit the KYC documents due to genuine reasons, she/he may submit the documents to the
bankwithinaperiodofsixmonthsfromthedateofopeningaccount.
AlpanaKillawala
PrincipalChiefGeneralManager
PressRelease:20142015/410