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    Aadhaar is valid as ID, address proof for opening bank account: RBI

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    Aadhaar is valid as ID, add proof for opening bank acc: RBI
    The Reserve Bank of India on Monday said that it is proposing to review the existing KYC norms for simplifying as it was causing avoidable inconvenience to public and also hindered the efforts at financial inclusion.
     

    The KYC guidelines were formulated to protect the financial system against threat of money laundering/terror financing and frauds.

    The following modifications are done

    Opening of new accounts

    Earlier, banks have been calling for separate documents for verification of identity and address even though the documents for identity proof (Passport, PAN Card, Drivers' Licence etc.) also carry the address of the individual concerned. In view of this, customers frequently complain about the requirement of producing two sets of documents, one each for identity and address proof.

    Now, If the address on the document submitted for identity proof by the prospective customer is same as that declared by him/her in the account opening form, the document may be accepted as a valid proof of both identity and address.

    If the address indicated on the document submitted for identity proof differs from the current address mentioned in the account opening form, a separate proof of address should be obtained.

    However, as per new circular, a rent agreement indicating the address of the customer duly registered with State Government or similar registration authority may also be accepted as a proof of address.

    Introduction not Mandatory for opening accounts

    Before introduction from an existing customer of the bank was considered necessary for opening of bank accounts. In many banks, obtaining of introduction for opening of accounts is still a mandatory.

    Now, banks should not insist on introduction for opening bank accounts of customers.

    Acceptance of Aadhaar letter for KYC purposes:

    Unique Identification Authority of India (UIDAI) has advised Reserve Bank that banks are accepting Aadhaar letter issued by it as a proof of identity but not of address, for opening accounts.

     

    While, Aadhaar can be accepted as a proof of both identity and address.

    Banks are also advised that they may now accept NREGA Job Card as an ‘officially valid document' for opening of bank accounts without the limitations applicable to ‘Small Accounts'.

    GoodReturns.in

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