When the government want to make all financial transactions through the banks by keeping in mind RBI took several key decisions including opening the new accounts with simple process. According to the RBI notification which was issued on Monday any one can open new bank account with only one Identification Card.
According to the officials of the Union Government in the country only 25 percent people having bank accounts and number villages still did not involved in banking activity. In this back drop the government directed respective departments to start special drive to open new accounts but this was did not given good results.
Nationalized Banks still not showing in view to open new accounts. In other side Private banks continuing their efforts to attract to costumers by approaching them directly and the respective banks simplified existing procedure to open new bank accounts. After observing all these developments RBI issued fresh directions to open new bank accounts.
The RBI decision that will help migrant workers and employees with transferable jobs, who currently face a cumbersome procedure to access banking services.
"Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or undergoing periodic updation," the RBI said in a notification on Monday.
"In case the address mentioned as 'proof of address’ undergoes a change, fresh proof of address may be submitted to the branch within a period of six months," it said.
RBI was receiving representations and references from various quarters, including migrant workers and transferred employees, about the problems faced by them in submitting a proof of address while opening a bank account, the notification said.
In cases the customer is not able to furnish a local proof of address; the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer, it said. "No proof is required to be submitted for such address for correspondence/local address. This address may be verified by bank through positive confirmation such as acknowledgment of receipt of letter, cheque books, ATM cards, telephonic conversation," the apex bank said.
If there is a change in address, customer may intimate the new address for correspondence to the bank within two weeks of such a change, it added. It further asked banks to revise their KYC policy and ensure strict adherence to the revised guidelines.
