Bank Account Opening Simplified

In a move to make it easier for “low risk customers” to open bank account, Reserve Bank of India (RBI) has expanded the list of documents that can be used as Officially Valid Documents (OVDs) for proof of identity and address.

Over the years, the RBI has simplified the KYC requirements to make it easier for lower income people, such as migrant workers, to open bank accounts. Lack of documents make it difficult for them to open bank accounts, depriving them access to basic banking services. But that’s all set to change with these new set of OVDs!

Measures taken by the RBI in recent times to make it easier to open bank account:

1. Single documents can be used as both address and identity proofs.
2. No need to provide two proofs of address- current and permanent, any one will suffice. If the current address is different from the one mentioned in address proof, a declaration by the person about current address will be sufficient.
3. No KYC is required in case of transfer of account from one branch to another of the same bank.

In fact a person who doesn’t have any of the above-mentioned OVDs can open a “Small Account” with the bank by submitting and self-attesting a photograph in the presence of the bank official. However, these small accounts will be valid for 12 months only. Also, one can deposit a maximum of Rs 1 lakh in such account in a year and withdraw a maximum of Rs 10,000 in a month. The account can be continued further, if the person submits a document stating that he or she has applied to get the OVD.