What changed
Previously, banks required separate proofs for current and permanent addresses. Now, only one documentary proof of address is needed. If the address on the proof differs from the customer's current residence, banks can take a declaration of the local address for correspondence without requiring additional proof, and verify it through positive confirmation methods.
What it means for you
This simplifies KYC compliance for banks, especially for migrant workers and transferred employees. Banks must update their KYC policies to accept a single address proof and implement verification procedures for correspondence addresses. It reduces documentation burden but requires banks to ensure robust verification through positive confirmations like acknowledgment receipts or visits.
What you must do
- Revise your bank's KYC policy to accept only one proof of address (current or permanent) for account opening and periodic updates.
- Implement a process for customers to submit fresh proof of address within six months if their address changes.
- For non-local addresses, obtain a declaration of the local address for correspondence and verify it through positive confirmation methods.
- Ensure customers inform the bank of any change in correspondence address within two weeks.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions, Migrant workers and transferred employees, Bank customers undergoing KYC updation
What is the key change in address proof requirements?
Customers now need to submit only one documentary proof of address—either current or permanent—when opening a bank account or during periodic KYC updation, instead of separate proofs for both.
What happens if the address on the proof is not the customer's current residence?
The bank can accept a declaration of the local address for correspondence without requiring additional proof. The bank must verify this address through positive confirmation, such as acknowledgment of receipt of letters, ATM cards, or telephonic conversation.
How quickly must a customer update a changed address?
If the address on the submitted proof changes, the customer must provide fresh proof within six months. For a change in the correspondence address, the customer must inform the bank within two weeks.