This RBI notification (RBI201617173 DBR.AML.BC.No.4414.01.001201617) issued on December 6, 2016, addresses all Regulated Entities (REs) regarding customer due diligence and record maintenance requirements, specifically in the context of dormant account reactivation. It reiterates existing guidelines outlined in the Master Circular on Customer Services in Banks dated July 1, 2015, and the Master Direction on KYC dated February 25, 2016. The notification emphasizes that REs must perform due diligence based on the customer's risk category when reactivating dormant accounts, ensuring transaction genuineness, signature verification, and identity confirmation. Furthermore, it reminds REs of the requirement to obtain certified copies of Officially Valid Documents (OVDs) for proof of identity and address during account establishment and to preserve customer account information, including identification and address records, for at least five years after the business relationship ends. The RBI directs REs to ensure strict compliance with these instructions concerning dormant account activation, customer due diligence, and record management. The issuing authority is the Department of Banking Regulation, Central Office, Reserve Bank of India. Contact information: Phone: 022-22701203, Fax: 022-22701239, Email: cgmamlrbi.org.in, Website: www.rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, often referred to as RBI.
Customer Due Diligence: The process of identifying and verifying the identity of a customer.
Regulated Entities: Refers to the entities regulated by the Reserve Bank of India (RBI).
Master Circular on Customer Services in Banks: A circular issued by RBI regarding customer services provided by banks.
Master Direction on KYC: A direction issued by RBI related to Know Your Customer (KYC) norms and procedures.
Dormant Accounts: Bank accounts that have had no financial activity for a long period of time.
Mumbai, Maharashtra: City in India where the Central Office of the Department of Banking Regulation is located.
S.S.Barik: Chief General Manager in Charge at Reserve Bank of India
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
ब��कंग �व�नयमन �वभाग, क�द्र�य कायार्लय, क�द्र�य कायार्लय भवन, 13वीं मंिजल, शह�द भगत �सहं माग,र् मुंबई – 400 001
फोन: 022-22701203, फैक् स: 022-22701239, ईमेल-: cgmaml@rbi.org.in, वेबसाइट: www.rbi.org.in
Department of Banking Regulation, Central Office, Central Office Building, 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001
Phone : 022-22701203, Fax : 022-22701239, E-mail : cgmaml@rbi.org.in, Website : www.rbi.org.in
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