RBI eases KYC norms, asks Banks to accept self attested docs

Posted By: Religare
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The Reserve bank of India has eased 'know your customer' norms by permitting self-certification of documents needed for opening bank accounts, said the media report.

"With a view to easing difficulties faced by common persons while opening bank accounts and during periodic updating, guidelines on KYC will be further simplified with immediate effect," the central bank said in its monetary policy statement.

RBI has asked banks to "allow self-certification; accept a certified copy of the document by mail/post" for account opening.

Banks have also been asked not to seek fresh documents if an existing KYC compliant customer of a bank desires to open another account in the bank.

For periodic updating of KYC, the RBI told the banks not "insist on physical presence of the customer" and also not seek fresh proof of identity and address in case of no change in status for 'low risk' customers.

The Reserve Bank further said there is a need for banks to complete KYC for all customers including long standing 'low risk' customers."Banks should complete documentation, while minimising the effort on the part of the customer to what is strictly needed," it said.

Story first published: Tuesday, September 30, 2014, 23:00 [IST]
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