1. What you really must know about your banking transactions

What you really must know about your banking transactions

The Reserve Bank of India has issued simplified version of Know Your Customer (KYC) guidelines. Here’s what you should keep in mind for your banking transactions

By: | Published: November 8, 2016 6:12 AM

The Reserve Bank of India has issued simplified version of Know Your Customer (KYC) guidelines. Here’s what you should keep in mind for your banking transactions:

* To open a bank account, one needs to submit proof of identity and address together with a recent photograph.

* The documents for proof of identity are Passport, Driving Licence, Voters’ Identity Card, PAN Card, Aadhaar Card and NREGA Job Card. If these documents also contain your address details, then it will also be accepted as proof of address.

* e-KYC can be done only for those who have Aadhaar numbers. While using

e-KYC service, the customer will have to authorise UIDAI to release his identity/address through biometric authentication to the bank branches.

* If a customer has opened a KYC compliant account with a bank, other than a small account, to open another account with the same bank, furnishing of documents is not necessary.

* Permanent Account Number (PAN) has to be quoted for transactions such as account opening and transactions above R50,000 (whether in cash or non-cash).

* Those who do not have accounts with the bank have to produce proof of identity and address while purchasing third party products from banks if the transaction is for more than R50,000.

* KYC is required to be done at least once in two years for high-risk customers, once in eight years for medium-risk customers and once in 10 years for low-risk customers.

* If KYC documents are not provided for periodic updation, the bank can close the account. Before closing the account, the bank may impose partial freezing.

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