RBI has asked urban cooperative banks to relax know your customer norms (KYC) for foreign students studying in India.
UCBs would be able to open a non-resident ordinary (NRO) bank account of a foreign student on the basis of his/her passport (with appropriate visa and immigration) which contains proof of identity and address in the home country along with a photograph and a letter offering admission from the educational institution,” says a RBI notification.
According to the notification , 30 days of opening the said account, the student concerned should submit a valid local address proof, which could be a rent agreement or a letter from his/her educational institution.
The apex bank has underlined that the UCBs should not insist on the landlord visiting the branch for verification of rent documents and that alternative means of verification of local address may be adopted.
The RBI circular says Pakistani students will need prior approval of the Reserve Bank to open a bank account.
