FM Nirmala Sitharaman has announced that the KYC process for bank customers will soon be simplified.
The Union Budget 2023 presented at the Parliament on Wednesday by Finance Minister Nirmala Sitharaman has brought several big announcements along with the announcement the KYC (Know Your Customer) process will soon be simplified for bank customers.
Announcing about the same, FM Sitharaman said, “The KYC process will be simplified by adopting a ‘risk-based’ instead of ‘one size fits all’ approach. The financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of Digital India.”
What is KYC?
KYC is the abbreviation for ‘know your customer’. It is a compulsory verification process followed by financial institutions to prevent or minimise any discrepancies. The Reserve Bank of India (RBI) has prohibited individuals to open a bank account, trading account or demat account without fulfilling the KYC procedure for KYC since 2004.
Read: Budget 2023 Income Tax benefits: Know how much tax you need to pay if your annual salary is Rs 10 lakh
KYC in India: Important documents
- Individuals (Documents acceptable as proof of identity/address)
- Passport
- Voter’s Identity Card
- Driving Licence
- Aadhaar Letter/Card
- NREGA Card
- PAN Card
KYC for minors: Important documents
ID proof of the person to be operating the account needs to be submitted. In cases where minors can operate the account independently, the KYC procedure for identification/address verification as in the case of any other individuals would apply.
KYC for NRIs: Important documents
Passport and Residence Visa Copies, duly attested by--
- Foreign offices
- Notary Public
- Indian Embassy
- officers of correspondent banks whose signatures are verifiable through an authorised(A/B category Forex handling branch) branch of the Bank.
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