RBI unveils simplified KYC norms for public awareness

RBI unveils simplified KYC norms for public awareness
Reserve Bank has released a note and a poster to increase awareness about Know Your Customer (KYC) norms for opening bank accounts.

"The objective of this is to bring awareness among the general public about the KYC simplification measures taken by the Reserve Bank in the recent times with a view to helping the common man in opening bank accounts," RBI said in a press release.

Along with the note and poster, the RBI has also released a booklet comprising few common questions related with KYC norms.

Recently, RBI has taken various measures to simplify bank account opening procedure including allowing single document for proof of identity and proof of address, no requirement for separate proof of address for current address, and no separate KYC documentation while transferring accounts from one branch to another of the same bank.

Among others, RBI has also allowed opening of small accounts for people who do not have any officially valid documents on the basis of self-attestation.

It has also relaxed norms to open accounts with respect to officially valid documents for low risk customers; no KYC verification of all members of a Self Help Group and giving a one-month period for furnishing proof of local address for foreign students.

In case a customer categorised as low risk is unable to submit the KYC documents due to genuine reasons, he may submit the documents to the bank within a period of six months from the date of opening account.

Read more about: rbi, kyc
Story first published: Wednesday, August 27, 2014, 12:20 [IST]
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