opening account in bank

[gaikwadst]

Sir,
How can a layman open his/her account in the bank without fulfilling the KYC norms.If the person does not have the minimum proof i.e. ration card or voting card then how he can opening the account in the bank. This is the problem with migrated people from villages to city in search of work.

[kushal]

I am not sure if this issue can be related to RTI.
One possible solution you can explore is the Post Office Identity card; which can be issued by the local Postal Administration; i.e. Superintendent of Post Offices. You can apply for the POI card at your local Post Office and will serve the same purpose as any other identity card.

[ganpat1956]

KYC norms have been made mandatory by RBI. But in some individual banks, the branch managers have powers to accept "other forms of proof of residence", like a certificate from the employer etc. Since these are discretionary powers, they are very rarely utilised and that too after a thorough verification of the address by the manager-concerned.

[ganpat1956]

The RBI website has outlined the following documents for the purpose of verifying an individual's name and address:

The first group of documents to identify/verify the name of an individual and the second group is for the purpose of his/her residential address.

I i) Passport (ii) PAN card (iii) Voter’s Identity Card (iv) Driving licence (v) Identity card (subject to the bank’s satisfaction) (vi) Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of bank

II (i) Telephone bill (ii) Bank account statement (iii) Letter from any recognized public authority (iv) Electricity bill (v) Ration card (vi) Letter from employer (subject to satisfaction of the bank)
( any one document which provides customer information to the satisfaction of the bank will suffice )

Source: DBOD.NO.AML.BC.58/14.01.001/2004-05 dated 29.11.2004

[karira]

KYC is different than documents for opening a account.
KYC norms are designed by banks on the insistence of RBI so that the Banks are better aware of the customers background, business, finances, etc...

My bank sent me a KYC form to be filled up (I have been their customer since 15 years) but to my amazement the form asked for several details that I hesitated on giving out.....like family details about marriage, children, details about ownership of house, car, etc... I filled up a small portion of the form that I thought was justified and returned the form to my bank manager alongwith a form designed by myself known as KYB Form..."Know Your Bank" form. The bank did not fill up the KYB form neither did it get back to me to fill up the rest of the KYC form details. Probably because one of the several funny questions in the KYB form was:

Which brand of floor cleaner does my bank branch use everyday ?

The subject has never come up since.

[colnrkurup]

Don't you think that the bank is right in ascertaining the correct identity of the customer ? How can they open their door to a stranger without knowing who he is ?

[Debashis Basu]

KYC demand by RBI from Banks is basically to stop money laundering etc. It is very much required specially in present environment of terrorism in the country & elsewhere. While know your Bank (KYB) is a novel idea, we must not forget that even most poor man from remote village should have Voter ID or BPL ration card which are acceptable document for opening savings a/c in Bank or Post office.

Such poor people from village or migrant labourers actually face the problem on the requirement of someone who will be introducer to open the bank or post office account. I have no solution for this point.Any suggestion here ?

[colnrkurup]

I fully agree with you; but one cannot have solutions to all the problems. However there could be solution to the problems faced by migrant labourer or POOR people also though inability to avail the banking facilities for POOR becoming a grave problem appears little paradox. Migrant labourers are defenitly facing problem of safe custody of their accumulatted savings. I think the Post Office can defenitely help them by modifying their procedures suiting migrant labourers. There is no escape for such labourers from getting their Voter's identity card. Government has given them more than adequate opportunity to obtain this card. If they are too lazy to obtain this there isno choice. Anyway, I am sorry for discussing such subjects in RTI forum.

[karira]

There is a organisation called FINO (Financial Information Network Organisation, FINO)
They have been working on this problem and a small start was made on 15th August 2007:

Mumbai hawkers to get ‘smart’ with Union Bank

Mumbai, Aug 17 Vegetable vendors in Mumbai will soon be able to carry out banking transactions at their doorsteps, thanks to Union Bank of India.

The bank has introduced biometric cards for vendors, which will help them deposit money and take loans.

This initiative, under the bank’s financial inclusion programme, was launched on August 15.
Mr M.V. Nair, Chairman and Managing Director, said: “Hawkers find it daunting to enter a bank and they also lose a day’s business when they go to a branch. But they have the intention to save. So, we are giving them the facility to save.”

To begin with, Union Bank has given 60 smart cards to hawkers who are part of the Hawkers’ Association of Mumbai and opened ‘no-frills’ accounts for them.

The bank has tied up with FINO for issuing the smart cards.

These cards store data about the customer and the account.

Banking correspondents appointed by FINO Fintech Foundation would go to these hawkers with ‘point of transaction’ terminals.

By swiping the card on these handheld devices, hawkers can deposit their savings or borrow money.

The data from the cards, stored on the terminals, is later transferred to the bank’s servers.
Mr Nair said: “We want to place 200-250 terminals to cover one lakh hawkers this year.”
As a first step, the bank will encourage the hawkers to save. The second step would be to provide them finance, through a general credit card, said Mr Nair.

As a third step, the bank is considering providing insurance for the hawkers through a tie-up with LIC, but is yet to finalise it, he added.

The bank has launched similar schemes in Andhra Pradesh, where it has opened about 3,500 ‘no-frills’ accounts and in Uttar Pradesh, where it has opened 5,000 accounts.

For this fiscal, the bank has set a target of 30 per cent growth and Rs 32,000 crore as outstanding advances for the priority sector this fiscal, Mr Nair said.

The Hindu Business Line : Mumbai hawkers to get ‘smart’ with Union Bank