What changed
RBI expanded the indicative list of documents required for opening proprietary concern accounts. In addition to earlier documents, banks must now accept the complete Income Tax Return (not just the acknowledgement) in the proprietor's name reflecting firm income, and utility bills (electricity, water, landline telephone) in the concern's name.
What it means for you
Urban co-operative banks must update their account opening forms and KYC checklists to include these two new document types. This tightens customer identification for proprietary concerns, reducing risk of identity fraud. Banks should train staff on accepting full ITR and utility bills as valid proof.
What you must do
- Update KYC document checklist for proprietary concern accounts to include complete Income Tax Return and utility bills.
- Train frontline staff on accepting full ITR (not just acknowledgement) and utility bills as valid KYC documents.
- Amend account opening forms and internal procedures to reflect the expanded document list.
- Acknowledge receipt of this circular to the concerned Regional Office of RBI.
Who it affects
Primary (Urban) Co-operative Banks, Proprietary concern customers opening new accounts
What specific documents are newly added for proprietary concern accounts?
The complete Income Tax Return (not just the acknowledgement) in the sole proprietor's name showing firm income, and utility bills like electricity, water, and landline telephone bills in the proprietary concern's name.
Does this circular apply to all banks or only urban co-operative banks?
This circular is addressed specifically to all Primary (Urban) Co-operative Banks, as indicated by the circular number and recipient list.
When does this requirement take effect?
The circular was issued on May 11, 2012, and is effective from that date. Banks were expected to implement it immediately.