Abstract:
To reach the changes to the ears of the people for whom it is meant, this note is to picture some of the very recent regulations in force to open a bank account (Savings Account / Fixed Deposit Account). The regulations apply to (i) regular (i.e., full-KYC) bank account and (ii) Small (i.e., relaxed-KYC) account. An upcoming phrase- Officially Valid Document (OVD) is the buzz phrase which has now been clearly defined in the new regulation, eliminating earlier discretion allowed to banks. These regulations are yet to be internalised by the bankers and the public at large. This note highlights the salient features of these new regulations and their consequences towards the ease to use a bank for monetary transactions by common man in India. It also highlights the huge task for the banks to gather fresh OVD for all existing accounts where they have been opened under the earlier definition of OVD (using currently non-acceptable documents).
