Single address proof enough to open new bank account: RBI

Current RBI norms mandate that customers, who want to open a bank account, should submit an identity proof along with utility bills that detail the permanent address of a customer. Photo: Bloomberg

Mumbai: In a move that will benefit millions of customers who do not have a permanent address, or stay in a rented flat, Reserve Bank of India (RBI) said on Monday that customers henceforth will have to submit only a single document as address proof while opening a bank account.

“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,” the RBI said on Monday.

The central bank has asked banks to revise their know your customer (KYC) rules in the light of the latest change with immediate effect.

Current RBI norms mandate that customers, who want to open a bank account, should submit an identity proof like PAN card, voter’s ID, driving licence or any other identity, along with utility bills that detail the permanent address of a customer such as a telephone bill, electricity bill or ration card.

The RBI clarified that in case a customer is staying away from his permanent residence, a simple declaration by the customer, detailing his or her local address, would suffice to open a new bank account. “No proof is required to be submitted for such address for correspondence. 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,” the RBI said in a notification.

Any change in the local address of the customer should be intimated to the bank “within two weeks of such a change”, RBI said.

The change has been made following “representations from various quarters, especially migrant workers and transferred employees, etc., regarding problems faced in submitting a proof of current/permanent address while opening a bank account”, RBI said.