The Know Your Customer (KYC) norms have now become vital in banking space. Banks in India have been asked by the Reserve Bank of India to simplify them in order to make things easier for the bank customers.

The steps are taken considering the report submitted by the Damodaran committee. The committee was formed to look into banking services provided to the small customers and pensioners.

The Reserve Bank of India said that it received several complaints from customers regarding problems that they have to face while opening a new bank account. Moreover, the people who get transferred to some other place have to face a lot of difficulty in shifting their account.

Now a simple statement of account from the bank will be sufficient for such customers. Proof of residence is not likely to trouble them anymore.
A bank chief said, "Banks have mutually decided that for verifying residential proof, they will develop a mechanism wherein they can verify with each other if an individual is an account holder. However, an individual will have to provide supporting document for establishing his or her identity."