What changed
RBI allowed authorised persons to accept a single document for both identity and address proof during money changing activities, provided the address on the document matches the customer's declared address. Previously, separate proofs were required. If addresses differ, a separate address proof must still be obtained.
What it means for you
This reduces documentation burden for customers doing small-value forex transactions, speeding up onboarding. Banks and money changers can now rely on a single ID document for KYC compliance when addresses match, lowering operational friction. However, strict adherence to PMLA rules remains mandatory, and agents/franchisees must follow the same norms.
What you must do
- Update internal KYC procedures for money changing to accept a single document as both identity and address proof when addresses match.
- Train staff to verify address match between declared address and ID proof document before accepting it as dual proof.
- Ensure separate address proof is collected whenever the ID proof address differs from the customer's declared address.
- Communicate this circular to all agents and franchisees and confirm their compliance.
- Advise your Principal Officer to acknowledge receipt of this circular.
Who it affects
All Authorised Persons in Foreign Exchange (banks, money changers), Agents and franchisees of Authorised Persons, Customers undertaking money changing activities
Can I use my Aadhaar card for both identity and address proof under this circular?
Yes, if the address on your Aadhaar card matches the current address you declare, it can serve as both identity and address proof for money changing activities.
What if my ID proof shows an old address different from my current address?
In that case, you must provide a separate proof of your current address, such as a utility bill or bank statement, along with the ID proof.
Do these relaxed norms apply to agents and franchisees of authorised persons?
Yes, the guidelines apply equally to all agents and franchisees, and the franchiser is responsible for ensuring their compliance.