If you have gotten married recently or simply wish to obtain a new identity you can do so. However, don't forget to get your name changed in your financial accounts as well, lest you be locked out from it.
How the Government Has Facilitated Change of Name on Financial Accounts?
To help change your name on your financial accounts the Government has amended the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, in consultation with the Reserve Bank, and published a gazette notification G.S.R.730(E) dated September 22, 2015, titled Prevention of Money Laundering (Maintenance of Records) (PML) Third Amendment Rules, 2015.
In terms of clause 2 of the PML third amendment rules, an explanation has been inserted in clause (d) of Rule 2. Sub-rule (1) which enumerates that –
A document must be regarded to be an ‘officially valid document for the purposes of this clause even if the name is changed after it is issued if it is accompanied by a marriage certificate issued by the State Government or a Gazette announcement reflecting the name change.
As a result, regulated entities are advised that when establishing an account-based relationship or undergoing periodic updation, they may accept a copy of a marriage certificate issued by the State Government or a Gazette notification indicating a name change, as well as a certified copy of the ‘officially valid document’ in the person’s existing name.
Guidelines Outlined for Change of Name on Financial Accounts
In addition concerning change of name, an amendment to Rules 7 (3) and 7(4) has been published, which requires that
- Every reporting entity shall develop an internal mechanism, in accordance with any guidelines issued by the director in consultation with its regulator, for detecting the transactions referred to in clauses (A), (B), (BA), (C), (D), (E), and (F) of sub-rule (1) of rule 3, and for providing information about such transactions in such form as the director in consultation with its regulator may direct
- Every reporting entity, its designated director, officers, and employees must be responsible for following the method and mode of providing information as established by the director in conjunction with its Regulator.
In light of the aforementioned guidelines, institutions have amended their KYC policy and have maintained strict adherence to it.
Get Help from Vakilsearch with Changing Your Name on Financial Accounts
During a name change in a bank account, there are a number of procedures that must be followed. To alter your name in your financial accounts, follow the steps outlined below:
- The first step is to write an affidavit declaring your intention to change your name and have it notarized.
- After you’ve rendered the affidavit, you’ll need to place an ad in two local newspapers declaring that you’ve decided to change your name. Both the previous and new names should be disclosed in the advertisement.
- The applicant must next have the same published in the Indian Gazette.
- You must present a signed written application to the bank.
- Then attach the notarized name change affidavit, gazette notification, marriage certificate (in the case of a name change after marriage), and copies of newspaper articles.
- The bank will begin the process of changing your name in its system when your application has been validated and approved. You will receive an SMS or email confirmation once this process is complete.
- You must then request that your new name be put on your passbooks, cheque books, debit cards, credit cards, and other documents.
Get in touch with our professionals to complete the aforementioned steps hassle-free without suffering through the rigours of legal missteps contained in the process of changing your name.
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