What changed
RBI has specified a clear list of documents RRBs must verify for proprietary concern accounts, including proof of name, address, and activity. Previously, RRBs had discretion to frame internal guidelines; now they must collect at least two documents from a prescribed list.
What it means for you
RRBs need to tighten customer identification for proprietary concerns to prevent misuse. This reduces ambiguity and ensures uniform KYC compliance, but adds operational burden for onboarding and updating existing accounts within the deadline.
What you must do
- Update your KYC policy to include the prescribed document list for proprietary concerns.
- Train branch staff on verifying documents like registration certificates, tax returns, or municipal licenses.
- Identify existing proprietary concern accounts and complete KYC documentation by December 31, 2010.
- Acknowledge receipt of this circular to your regional RBI office.
Who it affects
All Regional Rural Banks (RRBs), Proprietary concern customers of RRBs, RRB branch staff handling account opening
What documents are acceptable for proprietary concern accounts?
Documents like registration certificate, Shop & Establishment Act license, sales/income tax returns, CST/VAT certificate, or professional practice certificates. Any two of these in the concern's name suffice.
When must existing accounts comply?
Existing proprietary concern accounts must complete the new KYC formalities by December 31, 2010.