PRESSRELEASES(127kb)

Date:Aug26,2014RBIsRecentsimplifiedKYCMeasuresForPublicAwareness

TheReserveBankofIndiatodayreleasedanotealongwithaposterandabookletcomprisingafewcommonquestionsrelatingtoKnowYourCustomer(KYC)norms for openingbankaccounts. Theobjective of this is to bring awarenessamong the general public about theKYC simplificationmeasures taken by theReserveBankintherecenttimeswithaviewtohelpingthecommonmaninopeningbankaccounts.Measurestakenforsimplification:1.SingledocumentforproofofidentityandproofofaddressThereisnownorequirementofsubmittingtwoseparatedocumentsforproofofidentityandproofofaddress.Iftheofficiallyvaliddocumentsubmittedforopeningabankaccounthasboth,identityandaddressoftheperson,thereisnoneedforsubmittinganyotherdocumentaryproof.Officiallyvaliddocuments(OVDs)forKYCpurposeinclude:Passport,drivinglicence,voters IDcard,PANcard,Aadhaar letter issuedbyUIDAIandJobCardissuedbyNREGAsignedbyaStateGovernmentofficial.Tofurthereasetheprocess,theinformationcontainingpersonaldetailslikename,address,age,gender,etc.,andphotographsmadeavailablefromUIDAIasaresultofeKYCprocesscanalsobetreatedasanOfficiallyValidDocument.2.NoseparateproofofaddressisrequiredforcurrentaddressSincemigrantworkers,transferredemployees,etc.,oftenfacedifficultieswhilesubmittingaproofofcurrentaddressforopeningabankaccount,suchcustomerscansubmitonlyoneproofofaddress(eithercurrentorpermanent)whileopeningabankaccountorwhileundergoingperiodicupdation.If thecurrentaddressisdifferentfromtheaddressmentionedontheproofofaddresssubmittedbythecustomer,asimpledeclarationbyher/himabouther/hiscurrentaddresswouldbesufficient.3.NoseparateKYCdocumentationisrequiredwhiletransferringaccountsfromonebranchtoanotherofthesamebankOnceKYC isdonebyonebranchof thebank, it isvalid for transferof theaccount toanyotherbranchof thesamebank.Thecustomerwouldbeallowed totransferher/hisaccountfromonebranchtoanotherbranchwithoutrestrictionsandonthebasisofdeclarationofhis/herlocaladdressforcommunication.4.SmallAccountsThosepersonswhodonothaveanyoftheofficiallyvaliddocumentscanopensmallaccountswithbanks.Asmallaccountcanbeopenedonthebasisofaselfattested photograph and putting her/his signature or thumb print in the presence of an official of the bank. Such accounts have limitations regarding theaggregatecredits(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, suchaccountswouldbeallowedtocontinueforafurtherperiodoftwelvemoremonths,iftheaccountholderprovidesadocumentshowingthatshe/hehasappliedforanyoftheofficiallyvaliddocument,withintwelvemonthsofopeningthesmallaccount.5.Relaxationregardingofficiallyvaliddocuments(OVDs)forlowriskcustomersIfapersondoesnothaveanyoftheofficiallyvaliddocumentsmentionedabove,butif iscategorisedaslowriskbythebanks,thenshe/hecanopenabankaccountbysubmittinganyoneofthefollowingdocuments:(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.PeriodicupdationofKYCTimeintervalsforperiodicupdationofKYCforexistinglow/mediumandhighriskcustomershavebeenincreasedfrom5/2yearsto10/8/2years,respectively.7.Otherrelaxations

i. KYCverificationofallthemembersofSelfHelpGroups(SHGs)isnotrequiredwhileopeningthesavingsbankaccountoftheSHGandKYCverificationofonlytheofficialsoftheSHGswouldsuffice.NoseparateKYCverificationisneededatthetimeofcreditlinkingtheSHG.

ii. Foreignstudentshavebeenallowedatimeofonemonthforfurnishingtheproofoflocaladdress.iii. Incaseacustomercategorisedas low risk isunable tosubmit theKYCdocumentsdue togenuine reasons,she/hemaysubmit thedocuments to the

bankwithinaperiodofsixmonthsfromthedateofopeningaccount.

AlpanaKillawalaPrincipalChiefGeneralManager

PressRelease:20142015/410

Home AboutUs Notifications PressReleases Speeches Publications Statistics