What changed
RBI clarified that RRBs can now accept any registration or licensing document issued by Central or State Government authorities for proprietary concerns. Additionally, the Importer Exporter Code issued by DGFT is also a valid identity document for opening such accounts.
What it means for you
This gives RRBs more flexibility in onboarding proprietary concerns, reducing reliance on a limited set of documents. It should ease account opening for small businesses and traders, potentially increasing current account and savings account volumes. However, RRBs must ensure these documents are verified as per their customer identification procedures.
What you must do
- Update your KYC policy and customer identification procedure to include government registration/licensing documents and IEC as valid identity proofs for proprietary concerns.
- Train branch staff on the new acceptable documents to ensure consistent implementation.
- Review and amend account opening forms and checklists to reflect the expanded document list.
- Acknowledge receipt of this circular to your respective Regional Office as instructed.
Who it affects
Regional Rural Banks, Proprietary concern customers, Branch operations teams handling account opening
Can we accept any government-issued document for proprietary concerns?
Yes, any registration or licensing document issued by the Central Government or a State Government Authority/Department is now acceptable, in addition to the earlier list.
Is the IEC code mandatory for all proprietary concerns?
No, it is an optional additional document. It can be used as an identity document if the concern has one, but it is not mandatory.