Reserve Bank of India on 9 June 2014 eased the KYC norms for opening bank account. In its notification it said that only one documentary proof of address (either the current or permanent) can be used to open bank account or for periodic updation.
It also said that in case the address mentioned as per proof of address undergoes a change than fresh proof of address may be submitted to the branch within a period of six months.
In conditions, when the furnished address by customer is not the local address or address where he is residing then the bank may take a declaration of the local address on which the correspondence will be made by the bank with customer. Whereas, no proof of address of correspondence or local address will be required in such conditions. The address may be verified by the bank through positive confirmation such as acknowledgement of receipt of
• Letter, cheque books, ATM cards
• Telephonic conversation
• Visits and others
The notification also said that due to any reason the customers address changes then he should intimate the new address for correspondence to the bank within two weeks of such a change.
About Know Your Customer Norm (KYC)
• KYC is a term used for customer identification process.
• The objective of the KYC guidelines is to prevent banks being used, intentionally or unintentionally by criminal elements for money laundering.
• KYC has two components - Identity and Address. While identity remains the same, the address may change and hence the banks are required to periodically update their records.
• RBI issued guidelines to banks under Section 35A of the Banking Regulation Act, 1949 and Rule 7 of Prevention of Money-Laundering Rules, 2005.
• These guidelines were issued on the recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering (AML) standards and on Combating Financing of Terrorism (CFT).
• RBI issued KYC guidelines in 2004 to which banks had to become compliant by 31 December 2005.
Where: across India
When: 9 June 2014