Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: form 3cd :: ACCOUNTING STANDARDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: list of goods taxed at 4% :: VAT Audit :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: due date for vat payment :: TDS :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
Latest Circulars »
 Opening of all Agency Banks for government business on April 1, 2017 – Revised instructions
 All payment systems to remain closed on April 1, 2017
 Clarification on Income Computation and Disclosure Standard (ICDS) notified under section 145(2) of the Income-tax Act, 1961
 RBI-Calendar for Auction of Government of India Treasury Bills
 Issuance Calendar for Marketable Dated Securities for April-September 2017
 Formation of seven new districts in the State of Manipur - Assignment of Lead Bank Responsibility
 Availability of LAF and MSF windows on March 28, 2017 (RTGS Working Mumbai Holiday)
  Payment systems to remain open on all days from March 25, 2017 to April 1, 2017
 Availability of LAF and MSF windows on March 25 and 26, 2017 (Saturday & Sunday)
 RBI Working Paper Series No. 5/2017: Comparison of Consumer and Wholesale Prices Indices in India: An Analysis of Properties and Sources of Divergence
 All Agency Banks and select offices of RBI to remain open on all days from March 25, 2017 to April 1, 2017

RBI-KYC/AML Standards/Combating Financing of Terrorism/Obligation of Banks under PMLA, 2002 Information sought by Banks from Customers UCBs
September, 06th 2013

RBI/2013-14/228
UBD.BPD (PCB) Cir. No. 11/14.01.062/2013-14

September 05, 2013

The Chief Executive Officer
All Primary (Urban) Co-operative Banks.

Madam / Dear Sir,

Know Your Customer (KYC)/Anti Money Laundering (AML) Standards/Combating Financing of Terrorism (CFT)/ Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002 – Information sought by banks from customers - Primary (Urban) Co-operative Banks (UCBs)

Please refer to the Master Circular UBD.BPD. (PCB).MC.No.16 /12.05.001/2013-14 dated July 1, 2013 on Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Measures/Combating Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002. The objective of these guidelines is to prevent banks from being used, intentionally or otherwise, by criminal elements for money laundering or terrorist financing activities. The KYC procedures also enable banks to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently. However, it has come to the notice of Reserve Bank of India that banks are seeking personal information/ details like number of dependents, the names of sons and daughters, lifestyle, number of foreign visits undertaken during the last three years, details of family members/ relatives settled abroad, assets and liabilities, name and date of birth of spouse, wedding date, investments, etc from customers which are not mandatory and relevant to perceived risk of a prospective customer while complying with KYC/AML requirement during the process of opening an account or during periodic updation. This has led to customer complaints that banks are going overboard in seeking information for KYC compliance and thereby invading into their privacy.

2. In this connection, attention of Primary (Urban) Co-operative Banks (UCBs) is drawn to paragraph 2.1 of the Master Circular that information sought from customer is relevant to the perceived risk, is not intrusive, and is in conformity with the guidelines issued in this regard. Any other information from the customer should be sought separately with his/her consent and after opening the account.

3. It is, therefore, reiterated that only ‘mandatory’ information required for KYC purpose which the customer is obliged to give while opening an account should be obtained at the time of opening the account/ during periodic updation.

4. Other ‘optional’ customer details/ additional information, if required, may be obtained separately only after the account is opened with the explicit consent of the customer. The customer has a right to know what is the information required for KYC that she/he is obliged to give and what is the additional information sought by the bank that is optional.

5. Further, it is reiterated that banks should keep in mind that the information (both ‘mandatory’ – before opening the account as well as ‘optional’- after opening the account with the explicit consent of the customer) collected from the customer is to be treated as confidential and details thereof are not to be divulged for cross selling or any other like purposes.

6. UCBs are advised to ensure strict adherence to the same.

Yours faithfully,

(A.K. Bera)
Principal Chief General Manager

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions