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RBI/2016-17/173
DBR.AML.BC.No.44/14.01.001/2016-17
December
06, 2016
All Regulated Entities (REs)
Dear Sir/Madam,
Requirement of customer due
diligence and need for maintenance of records
It has been reported that, of
late, a lot of customers are approaching banks for re-activation of dormant
accounts.
2. In this regard, we invite
attention to paragraph 24.2 (ix) of the Master
Circular on ‘Customer Services in Banks’ dated July 1, 2015,
requiring that operation in dormant accounts with banks may be allowed
after due diligence as per risk category of the customer. As stated
therein, ‘due diligence’ would mean ensuring genuineness of the
transaction, verification of the signature and identity etc.
3. Attention is also invited to
Chapters VI and VII of our Master Direction
on KYC dated February 25, 2016, addressed to all Regulated Entities
(REs) in terms of which
a.
as
part of the Customer Due Diligence Procedure, certified copies of
officially valid documents for proof of identity and address are to be
obtained while establishing an account based relationship;
b.
REs
shall, among others, take steps for preserving the customer account
information including preservation of records pertaining to the
identification of the customers and their addresses obtained while opening
the account, for at least five years after the business relationship is
ended.
4. It is reiterated that REs
shall ensure compliance, inter alia, with the above mentioned instructions
as applicable on activation of dormant accounts, customer due diligence and
record management, scrupulously.
(S.S.Barik)
Chief General Manager - in - Charge
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