The 'Know Your Customer' is a process where the banks ask its users to furnish details so that its services are not misused.
Full list of documents for bank KYC: Reserve Bank of India (RBI) has included NPR letter as one of the valid documents for KYC (Know Your Customer) verification by banks. According to a recent update by the central bank, the letter issued by the NPR authority can be used as an Officially Valid Document (OVD) for KYC verification process in the opening of new accounts or in applying for credit cards. But this is not mandatory.
According to RBI’s ‘Master Direction – Know Your Customer (KYC)’ updated on January 09, 2020, OVD includes Aadhar Card, Driving License, Voter’s Identity Card, NREGA’s job card or NPR’s letter.
“Officially Valid Document” (OVD) means the passport, the driving licence, proof of possession of Aadhaar number, the Voter’s Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and letter issued by the National Population Register containing details of name and address,” the RBI’s document says.
Recently, a controversy had erupted after an advertisement in a Telugu daily stated that submission of the National Population Register (NPR) letter was required for KYC procedure in banks.
The central bank headed by Governor Shaktikanta Das also recently announced ‘Video-based Customer Identification Process’ or ‘V-CIP’ for KYC. The ‘Video-based Customer Identification Process’ is a face-to-face process for the purpose of this Master Direction.
It is “a method of customer identification by an official of the RE by undertaking seamless, secure, real-time, consent-based audio-visual interaction with the customer to obtain identification information including the documents required for CDD purpose and to ascertain the veracity of the information furnished by the customer. Such process shall be treated as a face-to-face process for the purpose of this Master Direction,” said RBI.
The ‘Know Your Customer’ is a process where the banks ask its users to furnish details so that its services are not misused. This is done while opening new accounts or as per required from time to time.