Relaxed KYC for Flood Victims: Aug 2005 Circular

RBI/2005-06/89 Ref.DBOD.No.AML.BC. 23 /14.01.064 /2005-06 August 2, 2005 To The Chief Executives of Scheduled Commercial Banks including Regional Rural Banks Dear Sirs Facilitating opening of bank accounts for flood affected persons Please refer to our circular DBOD.No.AML.BC.58/14.01.001/2004-05 dated November 29, 2004 on Know Your Customer Guidelines – Anti-Money Laundering standards. In terms of the above circular, banks were advised to formulate a customer acceptance policy and customer identification procedure to be followed while opening an account. 2. As you are aware, a large number of persons have been affected by unprecedented floods in Maharashtra. The State Government is arranging to issue cheques ranging from Rs.50,000/- to Rs.2.00 lakh to affected persons who may or may not be having bank accounts and would need to quickly open bank accounts. In view of the calamity and the need to provide immediate succour, banks are advised to observe minimum formalities for enabling such persons to open a bank account quickly. The accounts may be opened with – a. introduction from another account holder or b. documents of identity such as Voter's Identity Card or a driving license, identity card issued by an office, company, school, college, etc. along with a document indicating the address such as Electricity Bill, Ration Card etc. or c. introduction by two neighbours who have the documents as indicated in para 2 (b ) above or d. in the absence of the above any other evidence to the satisfaction of the bank. Yours faithfully ( Prashant Saran ) Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/89 · issued 02 Aug 2005. The plain-English explanation above is BankPulse’s own independent summary.

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