New e-KYC guidelines published by Indian regulator to help illiterate people open bank accounts

From: RegTech Analyst

People who cannot read have been given more opportunities to open new bank accounts in India thanks to new electronic know your customer (e-KYC) guidelines.

The Bangladesh Financial Intelligence Unit (BFIU) has issued the new guidelines for opening accounts without having to fill in any paper-based documents, Dhaka Tribune reported.

This means that illiterate individuals can open accounts without having to fill in their signatures.

However, those that opt to use the service will only be able to make limited transactions worth between Tk20,000 (£180) to Tk500,000 (£4,516.9).

The guidelines are part of India’s drive to create more financial inclusion and follows from a pilot programme that took place across 52 locations in 33 districts that involves 19 banks.

It also follows from the Indian Prevention of Money Laundering Act was amended in November 2019 to allow for more flexibility to help consumers prove that they are who they say they are.

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