The Reserve Bank of India has been, from time to time, issuing guidelines on KYC/AML/CFT measures. 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. In this regard, a Working Group constituted by the Government of India has proposed the introduction of unique identifiers for customers across different banks and Financial Institutions for setting up a centralized KYC Registry. While setting up such a system for the entire financial system is likely to take quite some time, banks can make an immediate beginning in this regard by having such identification code for their own customers.
2. In this regard, please refer to paragraphs 86 and 87 (extracts enclosed) of Monetary Policy Statement 2012-13 announced on April 17, 2012 on Unique Customer Identification Code for banks’ customers in India. While some banks already use UCICs for their customers by providing them a relationship number, etc., other banks have not adopted this practice. Banks are, therefore, advised to initiate steps for allotting UCIC to all their customers while entering into any new relationships for individual customers to begin with. Similarly, existing individual customers may also be allotted unique customer identification code by end-May 2013.
3. The UCIC will help banks to identify customers, track the facilities availed, monitor financial transactions in a holistic manner and enable banks to have a better approach to risk profiling of customers. It would also smoothen banking operations for the customers.
RBI press release link: click here
PDF version of the press release: click here