MUMBAI (TIP): The Reserve Bank of India announced simplified ‘know your customer’ (KYC) norms for low-risk customers ahead of the launch of the Prime Minister’s Jan Dhan Yojana on Thursday. Under the new norms low-risk customers can provide KYC documents within six months of opening the account.

The Pradhan Mantri Jan Dhan Yojana will be launched by Prime Minister Narendra Modi on completion of 100 days of the new government. The scheme envisages financial inclusion by initially providing every household with a bank account. Subsequently through this account the underprivileged will get subsidies, insurance cover, and overdraft facilities.

Those persons who do not have any of the ‘officially valid documents’ can open ‘small accounts’ with banks. A ‘small account’ can be opened on the basis of a selfattested photograph and either a signature or thumb print in the presence of an official of the bank. Such accounts have limitations regarding the aggregate credits (not more than Rupees one lakh in a year), aggregate withdrawals (not more than Rupees ten thousand in a month) and balance in the accounts (not more than Rupees fifty thousand at any point in time). “These small accounts would be valid normally for a period of twelve months.

Thereafter, such accounts would be allowed to continue for a further period of twelve more months, if the account holder provides a document showing that she/he has applied for any of the officially valid document, within twelve months of opening the small account,” RBI said. Earlier RBI had clarified that there is no requirement of submitting two separate documents for proof of identity and proof of address.

If the officially valid document submitted for opening a bank account has both, identity and address of the person, there is no need for submitting any other documentary proof. Officially valid documents (OVDs) for KYC purpose include: passport, driving licence, voters’ ID card, PAN card, Aadhaar letter issued by UIDAI and Job Card issued by NREGA signed by a State Government official. “Since migrant workers and transferred employees often face difficulties while submitting a proof of current address for opening a bank account, such customers can submit only one proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation.

If the current address is different from the address mentioned on the proof of address submitted by the customer, a simple declaration about current address would be sufficient,” RBI said.