What changed
RBI relaxed standard KYC norms for persons affected by the 2005 Maharashtra floods. Banks were told to accept accounts opened with just an introduction, basic identity documents, or two neighbours’ attestation, overriding the usual customer acceptance policy.
What it means for you
Urban co-operative banks must prioritise speed over full KYC documentation for disaster-affected individuals. This allows immediate crediting of government relief cheques without the usual delays, reducing operational friction during emergencies.
What you must do
- Accept account openings with introduction from an existing account holder or basic ID like voter card, driving licence, or office/school ID plus address proof.
- Allow two neighbours with valid documents to introduce the applicant if no other ID is available.
- Use any other evidence satisfactory to the bank if none of the above options are feasible.
- Acknowledge receipt of this circular to the concerned RBI Regional Office.
Who it affects
Primary (Urban) Co-operative Banks in Maharashtra, Flood-affected persons needing to open accounts quickly, State Government agencies disbursing relief cheques
What documents are acceptable for identity under this relaxation?
Voter's Identity Card, driving licence, or identity card issued by an office, company, school, or college, along with an address document like electricity bill or ration card.
Can an account be opened if the person has no documents at all?
Yes, if two neighbours who themselves have valid documents introduce the applicant, or any other evidence satisfactory to the bank is provided.
Does this circular apply to all banks or only urban co-operative banks?
It is addressed specifically to all Primary (Urban) Co-operative Banks.