Supreme Court: Imminent Death Not Required For a Statement to Qualify as Dying Declaration  ||  SC: HC Cannot Grant Pre-Arrest Bail Without Quashing FIR; Accused Must Approach Sessions Court First  ||  SC: Agreed Interest Rate Cannot Be Challenged as Exorbitant; Arbitrator Cannot Override Contract  ||  SC: Agreed Interest Rate Cannot Be Challenged as Exorbitant; Arbitrator Cannot Override Contract  ||  SC: GST Exemption on Residential Lease Applies When Building is Sub-Leased for Hostel/PG Use  ||  Rajasthan High Court: Universities Cannot Retain Students’ Original Documents for Pending Fees  ||  NCLT: Damages from Contractual Disputes Cannot Form Basis for Initiating Insolvency Proceedings  ||  Del HC: Pre-SCN Consultation is Unnecessary in Large-Scale GST Fraud Cases with Complex Transactions  ||  Calcutta HC: Unilaterally Appointed Arbitrator Violates Natural Justice and Sets Aside the Award  ||  Raj HC Upholds Padmesh Mishra’s AAG Appointment, Noting Advocacy Skill isn’t Tied to Experience    

Requirement of customer due diligence and need for maintenance of records- (Reserve Bank of India) (06 Dec 2016)

MANU/RMIC/0216/2016

Banking

It has been reported that, of late, a lot of customers are approaching banks for re-activation of dormant accounts. 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.

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.

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.

Tags : DILIGENCE   RECORD MAINTENANCE   REQUIREMENT  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved