A news outlet reports the Reserve Bank of India has relaxed KYC norms and allowed sole proprietor Firms to open accounts in cooperative banks by giving a single proof of their business. Earlier, they were required to give two such documents.
In cases where the banks are satisfied that it is not possible to furnish two such documents, they would have the discretion to accept only one of those documents as activity proof, RBI has said in a communication to urban, state and central cooperative banks.
The RBI decision has come after being told that such firms were facing difficulties with regard to furnishing two documents as business activity proof while opening accounts of sole proprietary firms.