Home / Money / Calculators /  RBI widens KYC norms for account opening

Mumbai: The Reserve Bank of India (RBI) has allowed banks to accept Aadhaar cards issued by the Unique Identification Authority of India (UIDAI) as a valid address proof for opening a new account, widening the know your customer (KYC) norms.

Job cards provided under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) will also act as a valid document for opening a normal account, RBI said. So far, the MGNREGA job cards were only allowed for opening ‘small accounts’ that have transaction limitations, inconveniencing rural customers who wanted to open a regular account.

The steps have been taken “to ease the burden on the prospective customers in complying with KYC requirements for opening new accounts", RBI said in a notification on its website on Monday evening. “If the address provided by the account holder is the same as that on the Aadhaar letter, it may be accepted as a proof of both identity and address."

So far, banks have been accepting Aadhaar cards as a proof of identity but not as address proof for opening accounts. RBI also scrapped the requirement for an existing account holder to introduce a new customer.

RBI said in its second-quarter monetary policy that it would review KYC norms to make them simpler.

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