What changed
RBI simplified address proof requirements for UCBs: customers need only one document (current or permanent) instead of both. If the address changes, fresh proof must be submitted within six months. For non-local addresses, a declaration of local correspondence address is enough, verified through positive confirmation like letters or calls.
What it means for you
This reduces documentation burden for migrant workers and transferred employees, easing account opening. UCBs must update their KYC policies to reflect these changes and ensure strict adherence. The move balances customer convenience with AML/CFT compliance, but banks must verify correspondence addresses via positive confirmation.
What you must do
- Update your KYC policy to accept a single proof of address (current or permanent) for account opening and periodic updates.
- Implement a process for customers to submit fresh address proof within six months of any change.
- For non-local addresses, obtain a declaration of local correspondence address and verify it via positive confirmation (e.g., letters, calls, visits).
- Ensure the Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks (UCBs), Customers, especially migrant workers and transferred employees, Principal Officers of UCBs
Can a customer use a permanent address proof even if they live elsewhere?
Yes, customers can submit either current or permanent address proof. If the proof is not the local address, they must provide a declaration of the local correspondence address, which the bank verifies via positive confirmation.
What happens if a customer's address changes after account opening?
They must submit fresh proof of address to the branch within six months of the change. For correspondence address changes, they must inform the bank within two weeks.
Do UCBs need to revise their KYC policy for this?
Yes, UCBs must revise their KYC policy in line with these instructions and ensure strict adherence. The Principal Officer must also acknowledge receipt of the circular to the RBI Regional Office.