KYC means "Know Your Customer". It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks' services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.
To open a bank account, one needs to submit a 'proof of identity and proof of address' together with a recent photograph.
The Government of India has notified six documents as 'Officially Valid Documents (OVDs)' for the purpose of producing proof of identity. These six documents are
One of the above documents is required to be submitted as as proof of identity. If these documents also contain address details, then it would be accepted as as 'proof of address'. If the document submitted does not contain address details, then another officially valid document which contains address details is required to be submitted.
In absence of above noted officially valid documents, a normal account can be opened by submitting a copy of any one of the following documents:
This, however, is not a general rule and it is left to the judgement of the banks to decide whether this simplified procedure can be adopted in respect of any customer.
A 'Small Account' can be opened by submitting recent photograph and putting signature or thumb impression in the presence of the bank official. The small accounts have following limitations:
Small accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months, if the holder of such an account provides evidence to the bank of having applied for any of the officially valid documents within twelve months of the opening of such account. The bank will review such account after twenty four months to see if it requires such relaxation.
e-KYC is possible only for those who have Aadhaar numbers. While using e-KYC service, you have to authorise the Unique Identification Authority of India (UIDAI), by explicit consent, to release your identity/address through biometric authentication to the bank branches/business correspondent (BC). The UIDAI then transfers your data comprising name, age, gender, and photograph of the individual, electronically to the bank/BC. Information thus provided through e-KYC process is permitted to be treated as an 'Officially Valid Document' under PML Rules and is a valid process for KYC verification.
For further information on the above subject please visit RBI website
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