You may have found the whole Know Your Client (KYC) process with banks thus far irksome, as some banks often ask for identification proofs over and over again. Some of them insist on introduction by an existing customer, even if you want to open a new bank account with them; which can be quite annoying if you are already furnished and complied with your KYC.
But recently the Reserve Bank of India (RBI) eased the KYC norms for banks, which can make opening bank accounts and transacting hassle-free task for customers. In a communication to banks, RBI asked them not to insist on introduction by an existing customer while opening a new account, as it is not mandatory under any rule of the central bank. As long as the identity proof has an address that is the same as the address on which an account is being opened, there is no need for a separate address proof, said the RBI.
Thus far banks have been asking for separate documents for the identification and address verification process. Now banking regulator has allowed rent agreements registered with the state Government or any other registration authority as a proof of address, while "Aadhar cards" as proof of residence and identity, if the address on the account opening form and Aadhaar are the same. Moreover job cards given under given under the rural job scheme, would also suffice as a valid document to open a bank account.
I am of the view that, this initiative from RBI would indeed make opening bank account and transacting hassle-free for many individuals, and could aid in its agenda of inclusive banking as wider reach could be achieved with ease in KYC norms.
Best Regards
Prakash Nair
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