New Delhi: The Reserve Bank of India has simplified the KYC process for banks to collect information about their customers. For this, it has made some amendments to the KYC rules. Following this, the process of opening a bank account has become even easier.
What are the advantages of KYC in banking
These changes have been brought in to integrate first-time bank users and government-subsidized customers into the banking structure. Accordingly, customers can open a bank account by following three different procedures.
Direct verification
When the customer comes in person, the account can be opened through Aadhaar biometric-based KYC
If there is a difference between the address on the Aadhaar card and the current address, the customer’s self-certification is sufficient.
After coming in person, the account can also be opened through the digital KYC method.
Indirect verification
If the customers do not come in person, the KYC process can be followed by sending an OTP to verify the Aadhaar number. However, this is subject to certain conditions.
Documents, electronic documents and other certified documents on the DigiLocker platform can be used for verification.
The information about the customers belonging to the bank accounts opened in this way must be fully verified within one year.
Video Verification
With the consent of the customer, in a secure environment, a bank officer can verify the identity of the customer through a video call.
This procedure can be followed to open an account and update KYC information.
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