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Banks to allot unique ID code to customers: RBI

RBI suggests to create unique customers identification code while bringing changes in new account opening process

July 02, 2013 12:06 IST | India Infoline News Service
The Reserve Bank of India (RBI) has revised certain guidelines related to bank know your customer (KYC) policy.

The central bank suggested to create unique customers identification code (UCIC) while bringing changes in new account opening process.

"The increasing complexity and volume of financial transactions necessitate that customers do not have multiple identities within a bank, across the banking system and across the financial system. This can be achieved by introducing a unique identification code for each customer," RBI said in a master circular on Know Your Customer (KYC)/Anti-Money Laundering (ALM), released on Monday.

There is no objection to banks offering referral services to their customers for financial products subject to the following conditions:

The bank/third party issuers of the financial products should strictly adhere to the KYC/AML guidelines in respect of the customers who are being referred to the third party issuers of the products.
The bank should ensure that the selection of third party issuers of the financial products is done in such a manner so as to take care of the reputational risks to which the bank may be exposed in dealing with the third party issuers of the products.
The bank should make it explicitly clear upfront to the customer that it is purely a referral service and strictly on a non-risk participation basis.
The third party issuers should adhere to the relevant regulatory guidelines applicable to them.
While offering referral services, the bank should strictly adhere to the relevant RBI guidelines.

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