After almost a decade of tightening the banking sector’s account opening norms under the Congress government, The Reserve Bank of India has finally decided to make it simpler for all to open a bank account with just one address proof, permanent or local.
Obviously, the move will help temporary residents, immigrant labour, and transferable persons to open an account in the place they work, without facing arbitrary rules imposed by the RBI so far in the garb of KYC (Know Your Customer).
“Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or undergoing periodic updation,” the RBI said in its notification released on Monday.
“In case the address mentioned as ‘proof of address’ undergoes a change, fresh proof of address may be submitted to the branch within a period of six months,” it said.
RBI said, in case the customer fails to furnish a local proof of address, the bank may take a declaration of the local address on which all future correspondence will be made by the bank. “No proof is required to be submitted for such address for correspondence/local address. This address may be verified by bank through positive confirmation such as acknowledgment of receipt of letter, cheque books, ATM cards, telephonic conversation,” the RBI note said.
If there is a change in address, customer may intimate the new address for correspondence to the bank within two weeks of such a change, it added.
But the rider is that banks have been asked to revise their KYC norms and follow the revised guidelines.
To see KYC norms as of 2013, click HERE.