For KYC verification by banks, the RBI has come out with a new list in which it has also included NPR letter. So, as per the recent update by the RBI, the letter issued by the NPR authority shall also be taken as a valid ID proof or OVD (officially valid document) in opening bank account or for applying credit cards. However this is not mandatory.
According to RBI’s ‘Master Direction – Know Your Customer (KYC)’ updated on January 09, 2020, OVD includes Aadhar Card, Driving License, Voter’s Identity Card, NREGA’s job card or NPR’s letter.
The RBI’s document said, “Officially Valid Document” (OVD) means the passport, the driving licence, proof of possession of Aadhaar number, the Voter’s Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and letter issued by the National Population Register containing details of name and address”.
Also video KYC has been allowed i.e. an one-on-one process for the purpose of this Master Direction. It is “a method of customer identification by an official of the RE by undertaking seamless, secure, real-time, consent-based audio-visual interaction with the customer to obtain identification information including the documents required for CDD purpose and to ascertain the veracity of the information furnished by the customer. Such process shall be treated as a face-to-face process for the purpose of this Master Direction,” said RBI.
In the Know your customer formality, customers details are sought by the bank such that its services are not misused.