What changed
RBI advised co-operative banks to observe minimum formalities for opening accounts for flood-affected persons, accepting alternative ID proofs or neighbor introductions, applicable to Maharashtra and other states in similar situations.
What it means for you
Banks can now open accounts quickly for disaster victims without full KYC, reducing paperwork and delays. This helps disburse government relief cheques (₹50,000–₹2 lakh) efficiently. However, banks must still ensure basic identity verification to prevent misuse.
What you must do
- Accept alternative ID proofs like voter ID, driving license, or office/school ID for flood victims.
- Allow neighbor introductions with valid documents as a KYC option.
- Apply these relaxed norms to any state facing similar disasters.
- Acknowledge receipt of this circular to your regional RBI office.
Who it affects
State and District Central Co-operative Banks, Flood-affected individuals in Maharashtra and other states, Government agencies issuing relief cheques
What documents are acceptable for opening an account under this relaxation?
Banks can accept voter ID, driving license, office/school/college ID with address proof like electricity bill or ration card, or introduction by two neighbors with valid documents.
Does this apply only to Maharashtra?
No, the circular states it applies to other states also in similar disaster situations.