One Documentary Proof of Address – RBI further simplifies KYC Norms for Bank Accounts
The Reserve Bank of India (RBI) has eased KYC (Know Your Customer) norms by stipulating that citizens who are seeking to open a new bank account but does not have a proof of permanent address can do so by just submitting one documentary proof of current address.
This move will provide breather to millions of people living in rented accommodation, migrant workers and transferred employees who faces problem in submitting a proof of current/permanent address while opening a bank account.
RBI vide notification no. RBI/2013-14/634 DBOD.AML.BC. No. 119/14.01.001/2013-14 dated June 9, 2014 said, “Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation.”
Change in address
“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,” the notification added.
At present, if the address indicated on the document submitted for identity proof differs from the current address mentioned in the account opening form, banks have to obtain a separate proof of address.
A rent agreement indicating the address of the customer duly registered with the State Government or a similar registration authority, may also be accepted as proof of address.
The RBI further said that in case the proof of address furnished by the customer is not the local address or the address where the customer is currently residing, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer.
“No proof is required to be submitted for such address for correspondence/local address,” the RBI said.
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,” it said.
In case the address changes due to relocation or any other reason, customers may intimate the new address for correspondence to the bank within two weeks of such change, RBI added.