RBI/2012-13/431
UBD.BPD (PCB) Cir. No. 39/14.01.062/2012-13
March 7, 2013
The Chief Executive Officer of
All Primary (Urban) Co-operative Banks
Madam/Dear Sir,
Know Your Customer (KYC) Norms/Anti-Money Laundering (AML) Measures/Combating of Financing of Terrorism (CFT) / Obligations of banks under Prevention of Money Laundering Act (PMLA), 2002 Primary (Urban) Co-operative Banks
Please refer to our circular UBD.BPD (PCB) Cir. No. 28/14.01.062/2012-13 dated December 19, 2012 on simplification of Know Your Customer (KYC) norms / Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002. With a view to further easing the KYC process for the general public, especially customers who migrate to a new place on account of new job, transfer, etc., it has been decided to effect the following modifications to the existing instructions.
2. Shifting of bank accounts to another centre Proof of address:
Primary (Urban) Co-operative Banks (UCBs) were advised vide circular UBD.BPD (PCB) Cir. No.3/14.01.062/2012-13 dated July 10, 2012 that KYC once done by one branch of the bank should be valid for transfer of the account within the bank as long as full KYC procedure had been done for the concerned account. The customer should be allowed to transfer his account from one branch to another branch without restrictions. In order to comply with KYC requirements of correct address of the person, fresh address proof has to be obtained from him/her upon such transfer by the transferee branch. However, a large number of customers with transferable jobs or those who migrate for jobs are unable to produce a utility bill or other documents in their name as address proof immediately after relocating. In view of this, it has been decided that:
UCBs may transfer existing accounts at the transferor branch to the transferee branch without insisting on fresh proof of address and on the basis of a self-declaration from the account holder about his/her current address, subject to submitting proof of address within a period of six months.
UCBs may also accept rent agreement duly registered with State Government or similar registration authority indicating the address of the customer, in addition to other documents listed as proof of address in Annex I of our Master Circular on KYC/AML/CFT dated July 2, 2012.
3. UCBs should intimate their customers that in the event of change in address due to relocation or any other reason, they should intimate the new address to the bank within two weeks of such a change. While opening new accounts and while periodically updating KYC data as required in terms of paragraph 2.4 (c) of our Master Circular UBD.BPD. (PCB).MC.No.16/12.05.001/2012-13 dated July 2, 2012, an undertaking to this effect should be obtained. In all these cases customers will have to produce proof of address as mentioned at (a) and (b) above.
4. UCBs may revise their KYC policy in the light of the above instructions and ensure strict adherence to the same.
Yours faithfully,
(A. Udgata)
Chief General Manager-in-Charge
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July 2012 Circular
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RBI/2012-13/122
UBD.BPD (PCB) Cir. No. 3/14.01.062/2012-13
July 10, 2012
The Chief Executive Officer of
All Primary (Urban) Co-operative Banks
Madam/Dear Sir,
Intra-bank Deposit Accounts Portability
It has been brought to our notice that some banks are insisting on opening of fresh accounts by customers when customers approach them for transferring their account from one branch of the bank to another branch of the same bank. In such cases, insisting on opening of a fresh account or subjecting the customers to the full KYC procedure again causes inconvenience to them resulting in poor customer service. Further, in case of banks that are CBS enabled, the KYC records of a customer could be accessed by any branch of the bank and hence it is not reasonable for such banks to subject the customer again to the full KYC procedure.
2. Banks are advised that KYC once done by one branch of the bank should be valid for transfer of the account within the bankas long as full KYC procedure has been done for the concerned account. The customer should be allowed to transfer his account from one branch to another branch without restrictions. In order to comply with KYC requirements of correct address of the person, fresh address proof may be obtained from him/her upon such transfer by the transferee branch. It may be noted that instructions regarding periodical updation of KYC data in terms of paragraph 2.4(c) and those on maintenance of records of identity and transaction in terms of paragraph 2.15 of our Master Circular UBD. BPD. (PCB). MC. No.16 /12.05.001/2012-13 dated July 02, 2012 remain unchanged and banks will be required to carry out the updation at prescribed intervals as also maintain records of transactions and verification of identity as prescribed.
3. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully,
(A. Udgata)
Chief General Manager-in-Charge
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Master Circular July 2012
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Attached for download
