Apropos the report, "Relaxation in KYC norms a big boost for financial inclusion" (June 13), the Reserve Bank of India (RBI)'s decision advising banks to only ask for one (current or permanent ) address and its documentary proof from prospective customers, while accepting the customer's declaration of the postal address, can be a game-changer if implemented properly. However, the rub lies in expecting banks to verify the postal address through "positive confirmation". They are unlikely to make efforts for the verification of postal address of low-value accounts.
With Aadhaar many people have a proof for one address, which is mostly their national address, thus facilitating the implementation of the new proposal. Perhaps, RBI realised that the realities on the ground are far tougher for banks since they face identity frauds very often.
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With Aadhaar many people have a proof for one address, which is mostly their national address, thus facilitating the implementation of the new proposal. Perhaps, RBI realised that the realities on the ground are far tougher for banks since they face identity frauds very often.
Y P Issar Karnal
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number