RBI relaxes KYC norms for proprietary firms

The Reserve Bank of India (RBI) has relaxed the know-your-customer norms for proprietary firms. RBI said in cases where  banks are satisfied it is not possible to furnish two documents as activity proof, they would have the discretion to accept only one of those documents as sufficient. These include registration certificate and utility bills.

In such cases, RBI said the bank, however, would have to undertake contact point verification, collect such information as would be required to establish the existence of such a firm, confirm, clarify and satisfy itself that the business activity had been verified from the address of the proprietary concern.