What changed
RBI relaxed KYC norms for flood-affected persons in Maharashtra, permitting account opening with reduced documentation. Banks could accept introduction from another account holder, basic identity documents (voter ID, driving license, office/school ID) plus address proof (electricity bill, ration card), or introduction by two neighbours with such documents. Any other evidence satisfactory to the bank was also allowed.
What it means for you
Banks must prioritize quick account opening for disaster victims to ensure relief funds reach them without delay. This circular overrides standard KYC requirements temporarily, but banks retain discretion to verify identity to their satisfaction. Lenders should prepare internal guidelines for similar future relaxations during calamities.
What you must do
- Train branch staff on the relaxed KYC options for disaster-affected persons.
- Set up a fast-track account opening process for relief cheque beneficiaries.
- Maintain proper records of documents accepted under this relaxation for audit.
- Coordinate with local authorities to identify genuine flood victims.
Who it affects
Scheduled commercial banks, Regional rural banks, Branch managers in flood-affected areas, Compliance and KYC teams
What was the amount of relief cheques mentioned in this circular?
The circular stated that the State Government was arranging to issue cheques ranging from Rs 50,000 to Rs 2 lakh to affected persons.
Does this relaxation apply to all banks or only specific ones?
It applies to all scheduled commercial banks including regional rural banks, as addressed to their chief executives.
Can we accept any document as proof under this relaxation?
Yes, the circular allows 'any other evidence to the satisfaction of the bank' if the listed options are not available, giving banks discretion.