What changed
Previously, customers often had to provide separate proofs for both current and permanent addresses, causing difficulties for migrant workers and transferred employees. Now, only one documentary proof of address is required at account opening or periodic updation. If the address on that proof changes, customers must submit a fresh proof within six months. For a local correspondence address, banks can rely on a customer declaration and verify it via positive confirmation like acknowledging receipt of letters, ATM cards, or phone calls.
What it means for you
This simplifies KYC compliance for RRBs and cooperative banks, reducing customer friction especially for mobile populations. Banks must update their KYC policies to reflect this single-proof approach and ensure strict adherence. The change also reduces documentation burden while maintaining AML/CFT standards through verification mechanisms.
What you must do
- Revise your bank's KYC policy to allow customers to submit only one proof of address (current or permanent) at account opening or periodic updation.
- Implement a process for customers to submit a fresh proof of address within six months if the address on the original proof changes.
- Accept a customer declaration for a local correspondence address without requiring proof, and verify it through positive confirmation methods like acknowledging receipt of letters, ATM cards, or phone calls.
- Ensure customers inform the bank within two weeks if their correspondence address changes.
- Have the Principal Officer acknowledge receipt of this circular to the respective RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), State/Central Cooperative Banks (StCBs/CCBs), Customers, especially migrant workers and transferred employees
Can a customer now open an account with only a permanent address proof even if they live elsewhere?
Yes, they can submit just one proof of address (current or permanent). If it's not the local address, they must provide a declaration of their local correspondence address, which the bank verifies through positive confirmation.
What happens if the customer's address changes after account opening?
If the address on the submitted proof changes, the customer must submit a fresh proof of address to the branch within six months. For a change in the correspondence address, they must inform the bank within two weeks.
Do banks need to collect any proof for the local correspondence address?
No, banks can accept a customer declaration for the local address without any documentary proof. However, the bank must verify this address through positive confirmation, such as acknowledging receipt of letters, ATM cards, or phone calls.