The reserve bank of India is all set to eradicate rumours and mismanagement issues in the bank pertaining to KYC – Know your Customer now by introducing more clarity in the guidelines

RBI – The Reserve bank of India is now seeking to bring more clarity in the guidelines on KYC – Know Your Customer norms by and eradicating malpractices and rumors in the banking sector. The key highlights of clarity brought in the guidelines are as follows:

In cases you have changed your address proof you are still entitled to hold an account within the bank by just submitting a simple declaration of the new address

The clarity in the guidelines has been brought out in order to ensure that everyone has a bank account. As per the guidelines of Reserve Bank of India, if your address has changed in the recent past and is not the same as mentioned in the address proof submitted to the bank, all you will be required to do is to make a declaration of your new address.

Everyone who is Resident of India is eligible to open a small savings account:

Another point to be noted is that anyone can open a small savings bank account, with an account balance of Rs.50,000/- without providing any proof of identity and residential proof. With such arrangement one can enjoy the benefit of withdrawing upto Rs. 10,000/- in a month and total credit of Rs. 1 lakh in per fiscal year. Although in such cases the bank will have to verify and re-confirm the KYC details of an individual at regular intervals of 2, 8 and 10 years at the discretion of the bank which may depend upon the risk profiles.

List of ID proofs that are valid as per KYC norms:

Everyone who is a resident of India is eligible to open a bank account in any bank in the country if he has a valid address proof issued by govt. of India or any state/central govt. To comply with the KYC norms 1. Proof of Identity, 2. Proof of Address and 3. Recent Passport sized photograph should be good enough for you to open a bank account. Any government issued document such as your driving license, voter’s identity card, adhaar card, Indian passport, National Rural Employment Guarantee Act card can serve as your identity proof as well your residential proof since they bear both your photograph as well as your address on the document. Your Pan card can only serve as your identity proof as it does not bear your residential address mentioned in the document.

Having issues with KYC process? Reach out to RBI’s Banking Ombudsman:

If an individual faces any issues on the KYC process they must get in touch with their bank to sort out an obtain a clarity as per the new guidelines and if still there is no avail you may directly raise your complaint to RBI’s Banking Ombudsman

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