the pandemic for economic and financial conditions. according to eurostat ’ s flash estimate, euro area annual inflation remained unchanged at – 0. 3 per cent in november. on the basis of oil price dynamics and taking into account the temporary reduction in the german vat rate, headline inflation is likely to remain negative until early 2021. thereafter, it is expected to increase owing to the end of the temporary vat reduction in germany and upward base effects in energy price inflation. at the same time, underlying price pressures are expected to remain subdued owing to weak demand, notably in the tourism and travel - related sectors, as well as to low wage pressures and the appreciation of the euro exchange rate. once the impact of the pandemic fades, a recovery in demand, supported by accommodative fiscal and monetary policies, will put upward pressure on inflation over the medium term. market - based indicators and survey - based measures of longer - term inflation expectations remain at low levels. this assessment is broadly reflected in the baseline scenario of the december 2020 eurosystem staff macroeconomic projections for the euro area, which foresees annual inflation at 0. 2 per cent in 2020, 1. 0 per cent in 2021, 1. 1 per cent in 2022 and 1. 4 per cent in 2023. compared with the september 2020 ecb staff macroeconomic projections, the outlook for inflation has been revised down for 2020 and 2022. turning to the monetary analysis, the annual growth of broad money ( m3 ) remained broadly 3 / 4 bis central bankers'speeches unchanged at 10. 5 per cent in october 2020. strong money growth has been supported by the ongoing asset purchases by the eurosystem, which have become the largest source of money creation. in the context of a still heightened preference for liquidity in the money - holding sector and a low opportunity cost of holding the most liquid forms of money, the narrow monetary aggregate m1 continues to be the main contributor to broad money growth. the growth of lending to the private sector has plateaued, while still recording higher growth rates than prior to the covid - 19 pandemic. following strong increases in the early months of the pandemic, the annual growth rate of loans to non - financial corporations fell to 6. 8 per cent in october, after 7. 1 per cent in september. this deceleration has occurred in the context of abating emergency liquidity needs, weak investment and tighter credit conditions on loans to firms,

relaxations ( i ) in case a customer categorised as low risk is unable to submit the kyc documents due to genuine reasons, she / he may submit the same to the bank within a period of six months from the date of opening account. ( ii ) third party verification of kyc is allowed, which allows banks / fis to rely on kyc / cdd carried out by other banks / fis. once the proposed central kyc registry is in place, customers would be saved from the trouble of submitting the kyc documents to each and every bank / fi whenever she / he opens an account with a different bank / fi. ( iii ) kyc verification of all the members of shg is not required while opening the savings bank account of the shg and kyc verification of only the officials would suffice. no separate kyc verification is needed at the time of credit linking the shg. home loans - levy of foreclosure charges / pre - payment penalty in accordance with the recommendations of the committee on customer service in banks ( chairman : m. damodaran ), the foreclosure charges / prepayment penalty on home loans has been removed. this is expected to lead to reduction in discrimination between existing and new borrowers. though many banks had in the recent past voluntarily abolished prepayment penalties on floating rate home loans, there is a need to ensure uniformity across the banking system, banks will not be permitted to charge foreclosure charges / pre - payment penalties on home loans on floating interest rate basis, with immediate effect. in case of dual rate / special rate home loans, the provisions of our above mentioned circular will be applicable from the date the rate of interest on the loan becomes floating. recommendations of damodaran committee on customer service in banks – uniformity in intersol charges as “ intersol ” charges are charges levied by the bank to cover the cost of extending services to customers by using the cbs / internet / intranet platform, the cost should be branch / customer agnostic in - principle. in order to ensure that bank customers are treated fairly and reasonably without any discrimination and in a transparent manner at all branches of banks / service delivery locations under cbs environment, banks are expected to follow a uniform, fair and transparent pricing policy and not discriminate between their customers at home branch and non - home branches. accordingly, if a particular service is provided free at home branch the bis central bankers ’