What changed
RBI modified KYC instructions to allow banks to transfer existing accounts to another branch without requiring fresh proof of address at the time of transfer. Instead, a self-declaration of current address suffices, with proof to be submitted within six months. Additionally, registered rent agreements are now accepted as valid address proof alongside existing documents.
What it means for you
This change reduces friction for customers with transferable jobs or those migrating, as they no longer need immediate utility bills to move accounts. Banks must update their KYC policies to incorporate these relaxations while ensuring eventual compliance. It simplifies operations for RRBs and co-operative banks, potentially improving customer retention and satisfaction.
What you must do
- Update your bank's KYC policy to allow account transfers based on a self-declaration of address, with a six-month window to submit proof.
- Accept registered rent agreements as valid address proof for KYC purposes.
- Inform customers to notify the bank of address changes within two weeks and obtain an undertaking to this effect during account opening and periodic KYC updates.
- Ensure strict adherence to the revised KYC policy across all branches.
Who it affects
Regional Rural Banks (RRBs), State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Customers with transferable jobs or those migrating
Can a customer transfer their account without any address proof?
Yes, at the time of transfer, the transferee branch can accept a self-declaration of the current address. The customer must then submit proof of address within six months.
What documents are now accepted as address proof under this circular?
In addition to existing documents listed in earlier circulars, a registered rent agreement with the state government or similar authority is now accepted as valid address proof.