RBI eases KYC norms, no need of of introduction from an existing customer of the bank for opening of bank accounts

The RBI has eased the burden of producing multiple documents to open a bank account. It has said that banks can accept any of the documents such as Passport, PAN Card, Drivers’ Licence, Aadhaar letter, and NREGA Job Card as proof of identity as well as address.

It is a condition that the address on the document submitted for identity proof should be the same as that declared in the account opening form.

The RBI has also scrapped the requirement of introduction from an existing customer of the bank for opening of bank accounts since introduction is not necessary for opening of accounts under PML Act and Rules or Reserve Bank’s extant KYC instructions.

Why the banks have been asking for multiple documents?

• The banks have doing so to comply with their obligation under the Prevention of Money Laundering (PML) Act, 2002 and to fulfill Know Your Customer requirements.
• The RBI has also scrapped the requirement of introduction from an existing customer of the bank for opening of bank accounts since introduction is not necessary for opening of accounts under PML Act and Rules or Reserve Bank’s extant KYC instructions.

Month: Current Affairs - December, 2012