KYC/AML Norms for Money Changing: Address Proof Simplified
Current · Source: Reserve Bank of India · RBI/2012-13/361 · issued 02 Jan 2013 · ~2 min read
Quick answerRBI eases KYC for money changing: if the ID proof document shows the same address as declared, it serves as both identity and address proof. Separate address proof is needed only if addresses differ.
The rule, in the simplest words
If you're changing money, you can use one document for both identity and address proof if the address on the document matches the address you declared.
If the address on the document doesn't match the address you declared, you'll need a separate document for address proof.
Banks and money changers must still follow strict Anti-Money Laundering (AML) rules.
How it plays out — a real example
Rahul, a KYC & compliance officer in Indore, is helping a customer change some money. The customer shows Rahul a passport with their address, which matches the address they declared. Rahul accepts the passport as both identity and address proof, making the process faster and easier for the customer.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/361
A. P. (DIR Series) Circular No. 68
January 2, 2013
To,
All Authorised Persons in Foreign Exchange
Madam / Sir,
Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards / Combating the Financing of Terrorism (CFT) Obligation of Authorised Persons under Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 Money changing activities
Attention of Authorised Persons is invited to F-Part-II of the Annex to the A.P. (Dir Series) Circular No. 17 [A.P. (FL/RL Series) Circular No. 04] dated November 27, 2009, as amended from time to time.
2. In order to ease the burden on the prospective customers in complying with KYC requirements for doing money changing activities, it has now been decided that:
If the address on the document submitted for identity proof by the prospective customer is same as that declared by him/her, the document may be accepted as a valid proof of both identity and address. If the address indicated on the document submitted for identity proof differs from the current address declared by the customer, a separate proof of address should be obtained.
3. All the other instructions contained in the A.P. (DIR Series) Circular No. 17 [A.P. (FL/RL Series) Circular No. 04] dated November 27, 2009 , as amended from time to time shall remain unchanged.
4. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned.
5. These guidelines are also applicable mutatis mutandis to all agents/ franchisees of Authorised Persons and it will be the sole responsibility of the franchisers to ensure that their agents / franchisees also adhere to these guidelines.
6. Please advise your Principal Officer to acknowledge receipt of this circular letter.
7. The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)and also under the, Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 and Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 as amended from time to time and are without prejudice to permission /approvals, if any, required under any other law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/361 · issued 02 Jan 2013. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All Authorised Persons in Foreign Exchange (banks, money changers), Agents and franchisees of Authorised Persons, Customers undertaking money changing activities), your first concrete step on “KYC/AML Norms for Money Changing: Address Proof Simplified” is: “Update internal KYC procedures for money changing to accept a single document as both identity and address proof when addresses match.” (RBI issued this 02 Jan 2013).
Action required: Update internal KYC procedures for money changing to accept a single document as both identity and address proof when addresses match.
Action required: Train staff to verify address match between declared address and ID proof document before accepting it as dual proof.
Action required: Ensure separate address proof is collected whenever the ID proof address differs from the customer's declared address.
Action required: Communicate this circular to all agents and franchisees and confirm their compliance.
Action required: Advise your Principal Officer to acknowledge receipt of this circular.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7788&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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