RBI Simplifies KYC Norms for Opening Bank Account

The six documents required for proof of identity are passport, driving licence, voter identity card, PAN card, Aadhaar card issued by UIDAI, and NREGA card.

You need to submit any one of these documents. If these documents also contain your address details, then it would be accepted as proof of address.

If one does not have any of these documents for proof of identity, one can still open a bank account known as Small Account by submitting a recent photograph and putting one’s signature or thumb impression. Such accounts have some limitations: The balance should not exceed R50,000, total credits in one year less than R1 lakh, total withdrawal and transfers not over R10,000 a month and foreign remittances cannot be credited to such accounts.

Electronic KYC is possible only for those who have Aadhaar number. The customer will have to authorise the Unique Identification Authority of India to release his identity/address through biometric authentication to the bank branch. Introduction to open a bank account is not required.

One can transfer an account from one branch to another of the same bank; there is no need for a KYC exercise again.

In case of change in address, one will have to submit a declaration about the current address. If a customer has opened an account with a bank that is KYC­compliant, then to open another account with the same bank, furnishing of documents is not necessary. Full KYC exercise is necessary for credit/debit/smart/gift cards. KYC will have to be done for all those who want to make domestic remittances of R50,000 and above, and all foreign remittances.

Source:- Internet News, Financial Express.


Best Regards,

CA Ayush Agrawal




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