Not mandatory: Central Bank of India clarifies stance on NPR for KYC process

Ch Sushil Rao / TNN / Jan 15, 2020, 13:40 IST

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After asking its customers to submit a National Population Register (NPR) document as a proof for its Know Your Customer (KYC) procedure before January 31, the Central Bank of India has now said that NPR letter is not mandatory and that any other document is also valid for KYC.

Not mandatory: Central Bank of India clarifies stance on NPR for KYC process

An advertisment in a Telugu daily saying NPR document was required for KYC resulted in tension among the bank’s customers

HYDERABAD: After asking its customers to submit a National Population Register (NPR) document as a proof for its Know Your Customer (KYC) procedure before January 31, the Central Bank of India has now said that NPR letter is not mandatory and that any other document is also valid for KYC.
In a clarification with regard to a recent advertisement in a Telugu daily on submission of NPR letter which caused disquiet among customers, the bank’s branch office in Rein Bazar, Hyderabad, said: “Any of the KYC documents can be given.

Submission of NPR letter is not mandatory.” It said that NPR is just an additional document.
With customers questioning the rationale behind such a move, the bank, in response to a query from TOI, said : “As per RBI’s directives, not only the letter issued by the National Population Register, even other documents like passport, driving licence, Aadhaar number, voter identity card and NREGA job card are also officially valid documents (OVDs) for KYC purpose.”
Bankers pointed out that NPR letter had been one of the OVDs for KYC since 2017 when it was notified by the government under the Prevention of Money Laundering Act. “All banks have been asking for it as one of the KYC documents,” they recall. The recent tension was over the Central Bank of India’s insistence to customers on submitting the NPR letter before January 31.

The bank is also said to have warned customers that they would not be able to withdraw or transfer money if they fail to do so. “Why is the bank asking for an NPR certificate when Aadhaar and PAN are sufficient for KYC?,” asked one Twitter user. Many claimed that the bank notice was being largely circulated on social media. The notice was also published in certain newspapers.
The notice also gave a toll-free number from which additional information could be sought or doubts clarified. When TOI contacted the toll-free number, the executives said there was no information about the NPR letter in their database. A senior bank official said that he was not aware of any such requirement.

About the Author

Ch Sushil Rao

Sushil Rao is Editor-Special Reports, at The Times of India, Hyderabad. He began his journalism career at the age of 20 in 1988. He is a gold medalist in journalism from the Department of Communication and Journalism, Arts College, Osmania University, Hyderabad from where he did his post-graduation from. He has been with The Times of India’s Hyderabad edition since its launch in 2000. He has also done an introductory course in film studies from the Film and Television Institute of India, Pune, and also from the Central University of Kerala equipping himself with the knowledge of filmmaking for film criticism. He has authored four books. In his career spanning 34 years, he has worked for five newspapers and has also done television reporting. He was also a web journalist during internet’s infancy in the mid 1990s in India. He covers defence, politics, diaspora, innovation, administration, the film industry, Hyderabad city and Telangana state, and human interest stories. He is also a podcaster, blogger, does video reporting and makes documentaries.

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