RBI eases address proof rules for opening bank accounts
09 June 2014
Reserve Bank of India (RBI) has simplified the ''proof of address'' rules for bank customers by limiting it to only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation.
RBI said this has been done in view of the difficulties faced by various sections of the population, especially migrant workers, transferred employees, etc in submitting proof of current/permanent address while opening a bank account.
The matter has since been examined in the light of amendment to the Prevention of Money Laundering Rules (Maintenance of Records), 2005, and accordingly it has been decided to simplify the requirement of submission of 'proof of address', RBI said.
In case the address mentioned as per 'proof of address' undergoes a change, RBI said, fresh proof of address may be submitted to the branch within a period of six months.
In case the proof of address furnished by the customer is not the local address or address where the customer is currently residing, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer. No proof is required to be submitted for such address for correspondence/local address. This address may be verified by the bank through 'positive confirmation' such as acknowledgment of receipt of letter, cheque books, ATM cards, telephonic conversation, visits etc.
In the event of change in this address due to relocation or any other reason, customers may intimate the new address for correspondence to the bank within two weeks of such a change, RBI said.
RBI has asked banks to revise their KYC policy in the light of the instructions and ensure strict adherence to the same.