Currency ban: Copies of ID proof not required for exchanging old notes, says RBI

The Reserve Bank of India (RBI), along with the head offices of most commercial banks, have asked banks not to collect photocopies of customers' identity proof for exchange of old currency notes.

The guidelines provided by the RBI state that customers only need to show valid ID proof and not their photocopies.

"The bank only needs details and numbers on the requisition slip which the teller will match with entries in a document," a senior State Bank of India (SBI) official was quoted as saying by the Times of India.

However, most of the bank branches, including those of SBI, have been asking for photocopies thereby adding to the long queues at banks. Several branches offer to photocopy the customer's original ID proof when he/she comes to exchange the old notes for new ones.

"While other banks might ask customers coming to exchange money to submit photocopies, we are not doing so. For our bank customers, we already have their KYC details, so there is no point in asking them for identification or proof again," A Vidyasagar, COO of Lakshmi Vilas Bank told the daily.

"For non-bank customers we do get photocopies, but we ask them to sign their names with date, purpose and bank branch," he added.

After the demonetisation of the Rs 1,000 and Rs 500 currency notes were announced by Prime Minister Narendra Modi, a gazette notification was issued which stated that citizens can exchange their old currency notes by showing their ID proof and submitting a requisition slip at the bank.