RBI relaxes KYC norms to open new bank a/cs
Bankers say this will help in business correspondents (BCs) in remote villages to open accounts and bridge the gap of the absence of bank branches
In order to simplify and quicken the process of opening accounts, the Reserve Bank of India (RBI) has amended the know-your-customer (KYC) rules to allow banks to open new accounts using one-time passwords (OTPs) on mobile phones.
Bankers say this will help in business correspondents (BCs) in remote villages to open accounts and bridge the gap of the absence of bank branches.
In a notification, RBI said on Thursday that banks can provide OTPs to complete their KYC procedure electronically after taking a consent from customers. “These accounts will not be allowed to hold more than Rs 1 lakh in aggregate deposits. Also, the total amount of credits in any single financial transaction should not exceed Rs 2 lakh.” A senior banker with a public sector bank said, “This was essential to get more account holders, especially in areas where there are no branches to open accounts.