Know Your Customer - RBI Clarification on Proof of Address
THERE is a branch of a nationalised bank just a few yards away from my office. My new secretary wanted to open an account in that branch. The Bank refused because she did not have proof of address near the bank. Her Adhaar card did not impress the Banker as that showed an address a few kilometres away from this branch. He advised her to open the account in a branch nearer to her residence for which she had a proof of address. Proof of address of her workplace was not good enough for the Bank manager. She has to take a day's leave to open an account in a branch near her house. She simply doesn't understand why the Bank is so stubborn in refusing her an account - the Bank knows better - they have their rules, which they follow scrupulously - for the ordinary people.
Reserve Bank of India seems to have heard her problem and has solved it.
Reserve Bank has been receiving representations/references from various quarters' especially migrant workers, transferred employees, etc. regarding problems faced in submitting a proof of current/permanent address while opening a bank account. It has now been decided to simplify the requirement of submission of 'proof of address' as follows:
a) Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation. In case the address mentioned as per 'proof of address' undergoes a change, fresh proof of address may be submitted to the branch within a period of six months.
b) 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 (i) letter, cheque books, ATM cards; (ii) telephonic conversation; (iii) 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 has advised Banks to revise their KYC policy in the light of the above instructions and ensure strict adherence to the same.