RBI waives address proof for small accounts

Says single proof for ID, address is sufficient
Hyderabad: The Reserve Bank of India (RBI) on Tuesday allowed banks to open small accounts for people, without seeking ‘officially valid KYC documents’. The central bank has also allowed banks to accept single proof for both identity and address instead of the current practice of asking for different documents.
“A small account can be opened on the basis of a self-attested photograph and putting her/his signature or thumb print in the presence of an official of the bank,” said a circular issued by the bank on Tuesday.
The accounts, which are classified as small accounts, should not have the aggregate credits of Rs 1 lakh in a year, aggregate withdrawals of not more than Rs 10,000 a month and balance in the account should not be more than Rs 50,000 at any point in time.
Though such account holders are required to submit KYC documents within one year, the banks can allow account holders to operate the small account for further one year, if he or she shows the proof of such application.
The central bank has also eased the requirement of submitting two documentary proofs for identity and address, even though the single document records both of them.
“There is now no requirement of submitting two separate documents for proof of identity and proof of address. If the officially valid document submitted for opening a bank account has both, identity and address of the person, there is no need for submitting any other documentary proof,” the circular explained.
To ease opening of bank accounts for migrant workers and transferred employees, who face difficulty in providing address proof, RBI said that such customers can submit only one proof of address (either current or permanent) while opening a bank account. “If the current address is different from the address mentioned on the proof of address submitted by the customer, a simple declaration about the current address would be sufficient,” RBI said.
( Source : dc correspondent )
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