13 Jul 2015

Unique Customer Identification Code for Bank Customers

RBI has advised all the Banks to  introduce unique identifiers for customers across all banks and financial institutions for setting up a centralised Know Your Customer registry. This will help banks not only to identify a customer, but to track the facilities availed, monitor financial transactions in various accounts, improve risk profiling and take a holistic view of customer’s profile. RBI has asked all the banks to make an immediate beginning in this regard by having identification codes for all their customers and Banks have been asked to allot the UCIC number to all their customers while entering into any new relationship with all individual customers. The banks have also been directed to allot unique customer identification code to existing customers by the end of April 2013. The deadline of April 2013 is being extended time and again as the guidelines issued by RBI have not been implemented in the absence of any penal provisions for the banks who are not switching over to UCIC for bank customers which will go a long way in arresting the tax evasion in India.  Moreover the lack of political will to bring economic offenders to book is another hurdle in implementing any guidelines which is aimed at unearthing black money in domestic or foreign banks.

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