What changed
RBI modified KYC norms to reduce customer inconvenience and promote financial inclusion. Banks can now accept a single document for both identity and address proof if the address matches the account opening form. Introduction from an existing customer is no longer mandatory for opening accounts. Aadhaar letters from UIDAI are accepted for KYC purposes if address matches. NREGA Job Card is accepted as an officially valid document without 'Small Account' limitations. 'Accounts with Introduction' provisions are withdrawn; banks must promote 'Small Accounts'.
What it means for you
Banks must update their account opening procedures to avoid requiring separate documents for identity and address when the same document suffices. This reduces friction for new customers and aligns with financial inclusion goals. Banks should also remove any mandatory introduction requirements from their customer acceptance policies, as they are not required under PMLA or RBI instructions.
What you must do
- Update account opening forms and KYC checklists to accept a single document for identity and address if the address matches.
- Remove mandatory introduction requirements from customer acceptance policies for new accounts.
- Train frontline staff on the revised KYC norms, including acceptance of Aadhaar letters and rent agreements (duly registered with State Government or similar authority) as address proof.
- Accept NREGA Job Card as an officially valid document for opening accounts without 'Small Account' limitations.
- Withdraw 'Accounts with Introduction' provisions and promote opening of 'Small Accounts' for all persons who so desire.
- Review and revise internal KYC procedures to ensure compliance with the simplified norms and avoid customer inconvenience.
Who it affects
Scheduled Commercial Banks (Excluding RRBs), Local Area Banks, All India Financial Institutions, Bank customers opening new accounts
Can a single document now serve as both identity and address proof?
Yes, if the document submitted for identity proof (e.g., passport, driver's license) shows the same address as declared in the account opening form, it can be accepted as proof of both identity and address.
Is introduction from an existing customer still required to open a bank account?
No, RBI has clarified that introduction is not mandatory under PMLA or its KYC instructions. Banks should not insist on introduction for opening accounts.
What additional documents can be used as address proof under the new norms?
Apart from the indicative list in the Master Circular, a rent agreement registered with the State Government or similar authority can also be accepted as proof of address.