KYC NORMS EASED FOR SMALL BANK ACCOUNTS

The stringent Know Your Customer (KYC) norms had forced banks to put off many small customers or those aspiring to be part of the banking system. RBI has now done away with the requirement to follow the KYC norms for customers in cases where the outstanding balance is not more than Rs. 50,000 and the maximum transaction is not more than Rs. 2 lakh. In such cases, customers will need to provide just a photograph and self-certification of address. However, as and when the transaction size and the balance increased beyond the limit, banks would be required to follow the normal KYC norms. RBI has also made life easier for the retired people by allowing them to operate a joint account for receiving pension payments. RBI said that it would allow crediting of the pension amount to a joint account operated by pensioner with her / his spouse where family pension has been authorized.