A person without valid KYC documents but classified as “low risk” can open an account by presenting one of the following applicant photo ID cards issued by a central/state government agency, legal/regulatory authority, public enterprise, intended commercial bank, or public financial institution. or a letter from an official agent with a certified photo. For residents of Jammu and Kashmir, Assam or Meghalaya who do not present Aadhaar or proof of registration for Aadhaar, the bank can obtain a “certified copy of an OVD with ID and address details and a recent photo,” RBI said. KYC checks are carried out through an independent and reliable source of documents, data or information. Each customer must provide credentials to prove their identity and address. Digital KYC means taking a live photo of the customer and an officially valid document or proof of ownership of Aadhaar if offline verification cannot be performed, as well as the latitude and longitude of the place where such live photo is taken by an authorized employee of the regulated company in accordance with the provisions of the law. The details of the digital KYC process are as follows (banks can use the services of Business Correspondent (BC) for this process): When opening accounts as described above, the client should be informed that if at any time the balances of all his accounts at the NBFC (combined) are fifty thousand rupees (Rs. 50,000/-) or the total account balance exceeds one lakh (Rs. 1,00,000/-), no further transactions are allowed until the full KYC process is completed. In order not to disturb the customer, the NBFC must inform the customer when the balance reaches forty thousand rupees (Rs. 40,000/-) or the total credit in a year reaches eighty thousand (Rs. 80,000/-), that the proper documents for conducting the KYC must be submitted, otherwise the transactions on the account will be stopped if the total balance of all accounts exceeds fifty thousand rupees (Rs. 50,000/-) or the loan total in the accounts in Lakh (Rs.
1,00,000/-) in one year. NBFS was advised to provide its branches with appropriate instructions on how to implement them in this regard. If you were new to a place and didn`t have a valid proof of address, opening a bank account was almost impossible. This issue has been resolved. Now, customers only need to provide proof of address (current or permanent) to open a bank account. All he has to do is make a simple statement about his current address. “SMALL ACCOUNTS” FOR THOSE WHO DON`T HAVE A KYC DOCUMENT Previously, the KYC process required you to submit separate proof of address and identity. The RBI abolished that. Now a single document with the photo and address of the applicant is enough. Approved documents for KYC include passport, driver`s license, voter card, PAN card, Aadhaar and work card. In April 2008, NBFCs were informed that, for the purposes of the circular of 21 February 2005, the term “be satisfied” means that the NBFC must be able to satisfy the competent authorities that due diligence has been exercised on the basis of the client`s risk profile in accordance with existing guidelines.
An indicative list of the type and type of documents/information that can be used to identify customers has also been given in this circular. It may happen that, although it has been clearly designated as an indicative list, it may be treated as an exhaustive list by some NBFCs, which may deny access to financial services to part of the public. NBFS is therefore advised to review its existing internal instructions in this regard. 1. Uniform document for proof of identity and domicile NBS does not need to require new proof of identity and address from clients at the time of regular updates if the status of their identity and address does not change. A corresponding self-certification by the customer should suffice in such cases. In case of change of address of these low-risk customers, they can only send a certified copy of the document (proof of address) by mail / post, etc. If an existing KYC-compliant NBFC customer wishes to open another account with the same NBFC, it should not be necessary to provide new proof of identity and/or proof of address for this purpose. If “simplified measures” are applied for verification purposes for the limited purpose of proof of address, the following additional documents are considered DVOs: ii. International students have one month to submit proof of local address.