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RBI asks banks to comply with 1-address proof rule

The Reserve Bank on Monday  asked banks to comply with the one-address-proof norm as it was found that many of them were not following the new rules.

Despite its clear instructions on requirement of one proof of address, whether permanent or current, the central bank said it was brought to its notice that some banks were still insisting on submission of a proof of current address even when a customer produced a proof of permanent address.

Banks are advised to ensure that customers are not unnecessarily asked to submit additional proofs of addresses for current addresses in cases where proofs of addresses for permanent addresses are already available, the central bank  said.

'Banks are requested to confirm latest by 17 October, 2014, that the above mentioned instruction has been communicated to all their branches and the same have been meticulously complied with,' Reserve Bank wrote in a communication to bank Chief Executives Officers CEOs/Chairperson.

RBI said the insistence for proof of local address prevents many prospective customers, especially migrant workers, from opening bank accounts.

Earlier in June this year, RBI had simplified the bank account opening norms by allowing customers to submit only one proof of address, either permanent or local.

The Reserve Bank  move was targeted at facilitating migrant workers and employees with transferable jobs, who face cumbersome procedure, to access banking services.

The Reserve Bank  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 will suffice to open a new bank account.
PTI

PTI

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