The customers, both deposit and borrowal accounts can open the bank account using OTP based e-KYC. The Reserve Bank made the amendments to ‘Principal Directions on KYC ‘(Know Your Customer (KYC)) Directions, 2016 (Master Direction No.DBR.AML.No.81/ 14.01.001/2015-16 dated February 25, 2016) with effect from December 8, 2016. In terms of the e-KYC amendments now made under above notifications are subject to the following conditions.
- Customer’s consent should be taken for authentication through OTP.
- The aggregate balance of all the deposit accounts of the customer shall not exceed rupees one lakh.
- The aggregate of all credits in a financial year, in all the deposit taken together, shall not exceed rupees two lakh.
- The credits facility sanctioned to the borrowers should be only in the form of term loans. The aggregate amount of term loans sanctioned shall not exceed rupees sixty thousand in a year.
- The Customer Due Diligence (CDD) procedure of such accounts should be completed ( both deposit and borrowal accounts) within one year. If the CDD procedure is not completed within a year, in respect of deposit accounts, the same shall be closed immediately. In respect of borrowal accounts, no further debits shall be allowed.
- A declaration shall be obtained from the customer to the effect that no other account has been opened nor will be opened using OTP based KYC either with the same Regulated Entity (RE) or with any other RE. Further, while uploading KYC information to CKYCR, REs shall clearly indicate that such accounts are opened using OTP based e-KYC and other Regulated Entities (REs) shall not open accounts of such customers based on the KYC information of accounts opened with OTP based e-KYC procedure.
- The Regulated Entities (REs) shall print/download directly, the prospective customer’s e-Aadhaar letter from the UIDAI portal if such a customer knows only his/her Aadhaar number or if the customer has only a copy of Aadhaar downloaded from a place/source elsewhere, provided the prospective customer is physically present in the branch/ office of the RE.
For opening accounts of juridical persons not specifically covered above;
The accounts of juridical persons such as Government or its Departments, societies, universities and local bodies like village panchayats can be opened with the certified copies of the following documents ;
- Document showing name of the person authorised to act on behalf of the entity.
- Officially valid documents for proof of identity and address in respect of the person holding a power of attorney to transact on its behalf and
- Such documents as may be required by the RE to establish the legal existence of such an entity/juridical person.
The banking regulator notified to all the Scheduled Commercial Banks to invariably upload the KYC data pertaining to all new individual accounts opened on or after January 1, 2017, with Central KYC Records Registry and CERSAI in terms of the provisions of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005. However, the Scheduled Commercial Banks SCBs are allowed time up to February 1, 2017, for uploading date in respect of accounts opened during January 2017.
The Regulated Entities other than Scheduled Commercial Banks are asked to upload the KYC data pertaining to all new individual accounts opened on or after from April 1, 2017, with CKYCR and CERSAI in terms of the provisions of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005.