The RBI has introduced Know Your Customer guidelines mandating banks, financial entities, and intermediaries to authenticate the customer’s identity. The purpose is to prevent the misuse of financial channels by criminals or terrorist groups for money laundering activities.

Importance of meeting KYC verification

Banks let you open a Savings Account online after collecting the requisite KYC documents. They ask you to refresh your documents according to the activity in your account or as per RBI directives. They may not allow you to open the account if you fail to provide proper documentation. In case of changes in your name, address, or contact details, you can ask the bank to update them by sending the revised details online.

Documents required

KYC documents fall under two main categories: address and identification proofs. You can provide any of the following documents:

• PAN Card
• Aadhaar
• Voter ID
• Passport
• Driving License
• Any Photo ID issued by the Central or State Government
• NREGA job card

For address proofs, present your Ration Card, utility bills, Aadhaar, passport, driving license, Bank Account statement or passbook, and a letter signed and stamped by a gazetted officer to verify the applicant’s address details.

E-KYC process

Traditionally, you visit the bank branch to submit physical documents to meet the KYC requirements. Thanks to high-speed internet networks, most banks today rely on e-KYC. They ask the customer to upload the KYC documents on the bank’s website or app. The bank checks the Aadhaar database and then verifies the OTP. Once the details match, you can upload the documents and open a Regular or Zero-Balance Savings Account.

Under video KYC, the process is similar, except you need not upload your photograph. The bank executive captures your image during the online verification process. Both methods eliminate the need to visit the bank branch. Banks also revamp the account opening and verification methods to keep up with changing times.

Points to remember

Nowadays, banks offer several tailored solutions to meet customers' diverse needs. Before opening an online account, check the interest rates, charges, and terms and conditions by visiting the bank’s website or downloading their app. Be informed and gather relevant information to simplify the process.

Thanks to smartphones and laptops, you can open Savings Accounts online without wasting time on extensive paperwork. Ensure the information provided is authentic and matches the documents submitted.

Conclusion

Customers with a Basic Savings Bank Deposit Account cannot open other Savings Accounts in the same bank. Banks do not impose age restrictions and income criteria on individuals eligible to open BSBDAs. However, you can open Term Deposits in the same bank.