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RBI Relaxes KYC Norms

RBI
Relaxes KYC Norms
Politics1 min read

The Reserve Bank of India has relaxed customer verification norms for opening bank accounts for migrant or transferrable workers who have to frequently change their locations. The move is in line with the financial inclusion drive being undertaken by banks.

RBI took the step following complaints by people who faced problems while submitting current or permanent address proofs.
“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 RBI said in a notice.

“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," it said.

In case the proof of address furnished by the customer is not the current or local address, the bank may take a declaration of the local address for the purpose of correspondence between the bank and the customer, the RBI said.

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