National

Opening bank account in new city to get tough

At present, one needs to submit a proof of identity and proof of address. File

At present, one needs to submit a proof of identity and proof of address. File   | Photo Credit: Nagara Gopal

RBI is yet to come up with guidelines

If you are going to move cities, you will need to submit proof of your new address as validated by your passport, driving licence or voter card, within three months of opening a bank account.

This requirement stems from a change in the anti-money laundering rules as notified by the Finance Ministry that mandates five specific documents as proof of ‘present’ address that a customer needs to submit to a bank branch for opening a new account.

A notification issued by the Revenue Department of the Finance Ministry on June 1 this year lists five officially valid documents — passport, driving licence, voter’s identity card, job card issued by NREGA signed by an officer of the State government, letter issued by the National Population Registrar containing details of name and address — that can be accepted by banks as proof of present, or current, address.

These rules were created by amending the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, and the rules are now called Prevention of Money Laundering (Maintenance of Records), Second Amendment Rules, 2017. Anticipating difficulties that would be faced by people, particularly those who change cities frequently, the RBI is yet to come up the operational guidelines, even six months after the government issued the notification. Typically, operational guidelines are issued within days after a notification comes out.

Sources close to the development said the central bank had taken up the issue with the government, highlighting the difficulties that would be faced by citizens. As a result, in late October, the government provided a three-month window for the account holder to comply with the norms.

At present, one needs to submit a proof of identity and proof of address. There are six official valid documents for proof of identity — passport, driving licence, voter identity card, PAN card, Aadhaar card and NREGA job card.

For proof of address, the RBI has allowed banks to accept documents such as rent agreement and utility bills.

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Printable version | Apr 4, 2020 3:56:48 PM | https://www.thehindu.com/news/national/opening-bank-account-in-new-city-to-get-tough/article21261872.ece

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