What changed
In 2013, RBI allowed UCBs to transfer existing accounts to a new branch without insisting on fresh address proof immediately. Instead, a self-declaration of current address suffices, provided proof is submitted within six months. Additionally, registered rent agreements (duly registered with State Government or similar registration authority) are now accepted as valid address proof alongside existing documents.
What it means for you
This reduces friction for customers with transferable jobs or those relocating, as they no longer need to produce utility bills or similar documents upfront. UCBs can retain and serve migrating customers more smoothly, but must track the six-month deadline for proof submission. Banks should update their KYC policies to incorporate these relaxations while ensuring compliance with PMLA obligations.
What you must do
- Update your KYC policy to allow account transfers based on a self-declaration of address, with proof required within six months.
- Accept registered rent agreements as valid address proof for KYC purposes.
- Inform customers to report 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 and maintain records of self-declarations and subsequent proof submissions.
Who it affects
Primary (Urban) Co-operative Banks, Customers with transferable jobs or those migrating for work, Branch operations teams handling account transfers
Can a customer transfer their account without any address proof at all?
Yes, for existing accounts, the transferee branch can accept a self-declaration of the current address. However, the customer must submit proof of address (e.g., utility bill, registered rent agreement) within six months of the transfer.
Is a rent agreement acceptable as address proof for KYC?
Yes, a rent agreement that is duly registered with the State Government or a similar registration authority is now an acceptable document for proof of address, in addition to the documents listed in the Master Circular.
What happens if the customer fails to submit address proof within six months?
The circular does not specify penalties, but banks should ensure compliance with KYC norms. It is advisable to follow up with the customer and, if proof is not provided, consider restricting account operations or closing the account as per the bank's KYC policy.