What changed
RBI advised RRBs to rely upon guardianship certificates issued by Local Level Committees under the National Trust Act, 1999, in addition to those from District Courts under the Mental Health Act, 1987, for opening/operating bank accounts of specified disabled persons. A summarized list of Local Level Committees in 499 districts (as of Feb 26, 2007) was enclosed.
What it means for you
RRBs now have a clear regulatory mandate to accept these certificates, reducing ambiguity and potential denial of banking services. This facilitates financial inclusion for disabled persons and their families. Branches must proactively guide parents/relatives to avoid difficulties.
What you must do
- Train branch staff to recognize and accept guardianship certificates from District Courts or Local Level Committees under the National Trust Act, 1999.
- Update internal account opening procedures to include these certificates as valid KYC for disabled persons.
- Ensure branches provide clear guidance to parents/relatives of disabled persons to ease account opening.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), RRB branch staff handling account openings, Disabled persons with autism, cerebral palsy, mental retardation, or multiple disabilities and their guardians, Local Level Committees under the National Trust Act
Which certificates can RRBs accept for opening accounts for disabled persons?
RRBs can accept guardianship certificates issued either by District Courts under the Mental Health Act, 1987, or by Local Level Committees under the National Trust Act, 1999.
What disabilities are covered under this circular?
The circular covers persons with autism, cerebral palsy, mental retardation, and multiple disabilities as defined in the National Trust Act, 1999.
How many districts have Local Level Committees as of February 2007?
As of February 26, 2007, Local Level Committees were formed in 499 out of 591 districts across India, excluding Jammu and Kashmir.