Banks can accept documents such as Passport, PAN Card, Drivers’ Licence, Aadhaar letter, and NREGA Job Card as proof of identity as well as address, according to the Reserve Bank of India.
However, this is subject to the address on the document submitted for identity proof by the prospective customer is the same as that declared by him/her in the account opening form.
The single document submission for proof of identity and address is aimed at easing the burden on the prospective customers in complying with know-your-customer requirements for opening new accounts, the RBI said in a notification.
So far, 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. This was to comply with their obligation under the Prevention of Money Laundering (PML) Act, 2002.
The RBI has also done away with the requirement of introduction from an existing customer of the bank for opening of bank accounts.
Since introduction is not necessary for opening of accounts under PML Act and Rules or Reserve Bank’s extant KYC instructions, banks should not insist on introduction for opening bank accounts of customers, the central bank said.
Keywords: open bank account, KYC norms, proof of address, proof of identity, RBI, Reserve Bank of India,
Comments:
Sir please let me clarify that Pan card does not have address so seperate address proof is required eventhough there is pan card, secondly if a person is having adhar card of Sangli whether he can open a bank account is pune. How KYC is to verified. It is very easy to issue circulars,instructions but at the end branch manager/officer has to suffer in case of any fraud.No introduction is required what about the protection under banking regulation act. RBI/Finance Ministry/Bank Management has studied these facts. suppose we have opened 100 accounts in a day how to do the KYC. WHETHER A BRANCH MANAGER CAN VISIT ALL 100 CUSTOMERs.So guide
The news report states "even though the documents for identity proof (Passport, PAN Card, Drivers’ Licence etc.) also carry the address of the individual". Everyone knows that PAN Card does not carry the details of the address of the holder.
The overall tone and tenor of the report begs the question: Are we serious about combating money laundering? One wonders whether this will make it more easy for drivers and peons of the "high and mighty" to easily open bank accounts of shell companies in the capacity of "Directors" of the entities.
If the concern of RBI is one of FINANCIAL INCLUSION, such concessions may be extended only to the economically and socially disadvantaged sections of society, and these are indeed already in place in no-frills accounts.
Then for whose benefit are such new precedural norms intended?
Given the current moral climate prevailing in the country, it is difficult to restrain one's own skepticism.
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