RBI in its Second Quarter Review of Monetary Policy vide Para 101, had committed itself to – to review the existing KYC norms for simplifying them within the provisions of Prevention of Money Laundering Act/Rules (PML Act/Rules) and international standards.
This was necessary as there were numerous correspondences addressed to RBI, that the existing norms for KYC were not customer-friendly.
Hence, RBI vide its Notification No RBI/2012-13/322 DBOD.AML.BC. No. 65 /14.01.001/2012-13 dt. December 10, 2012, has simplified the documents to be obtained under the KYC norms.
The contents of the complete circular can be accessed at this URL.
01) A single document is sufficient for address and identity proof, if the address declared in the account opening form is same as the address mentioned in the document.
02) Introduction not Mandatory for opening 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.
03) Acceptance of Aadhaar letter for KYC purposes – Unique Identification Authority of India (UIDAI) has advised Reserve Bank that banks are accepting Aadhaar letter issued by it as a proof of identity but not of address, for opening accounts. RBI has clarified that, if the address provided by the account holder is the same as that on Aadhaar letter, it may be accepted as a proof of both identity and address.
The above 3rd step is the most important part of the whole notification. UIDAI since a long time was trying to motivate RBI to advise Banks to accept ‘Aadhaar Card’, as a valid document for Identity as well as Address proof. It seems UIDIA has succeeded in its plan.
A quick reading of various articles on the Internet shows that the addresses mentioned on the ‘Aadhaar’, cards’ could only be located by Postal Delivery Agents. Does this mean that the Indian Post, will be the chief network for delivery of physical financial documents?