RBI/2004/ 119
UBD.BPD. PCB. Cir 41 /09.161.00/2003-04
March 26, 2004
The Chief Executive Officers of
all Primary (Urban) Co-operative Banks
Dear Sir,
"Know Your Customer" Guidelines-Compliance
Please refer to our circular UBD
No. DS.PCB. Cir 17/13.01.00/2002-03 dated September 18, 2002 on " Know Your
Customer Guidelines" to be followed by banks.
2. In this connection, we invite
your attention to para 3 of the circular wherein you were advised that banks
should verify the compliance in regard to Know Your Customer (KYC) procedures
for the existing customers based on the instructions extant at that time and
to ensure that any omission in this regard is rectified at the earliest. It
has now been decided that banks should draw up a time bound action plan as under
for completing this exercise to ensure verification of the identity and address
of the customer on the basis of reliable documents, in respect of all the old
accounts. We may add that in the case of partnership firms, KYC procedures may
be applied to all the partners.
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S.No.
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Nature of Customer Accounts
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Prescribed date for completion
of the process
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1
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All accounts, of companies,
firms, trusts, institutions etc,including borrowal accounts.
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June 30, 2004
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2
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All Customer accounts, including
borrowal accounts, opened during the period from January 1, 1998 till
date (other than those included in category 1 above,)
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September 30, 2004
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3
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All Customer Accounts, including
borrowal accounts, opened between January 1, 1993 and December 31, 1997(other
than those included in category 1 above.)
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December 31, 2004
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4
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All Customer accounts including
borrowal accounts, opened before 1st January 1993 (other than those included
in category 1 above)
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March 31, 2005
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3. While inoperative accounts could
be kept out of the current exercise, an inoperative account should be subjected
to the KYC procedures as and when any transaction comes up and is sought to
be transferred to the operative category.
4. You may advise your branches
suitably in this regard and submit compliance to our Regional Offices under
whose jurisdiction you operate within one month of each of the prescribed dates
for completion of the process indicated above. You are also required to put
up such compliance reports to the Audit Committee of the Board on a quarterly
basis.
5. Please acknowledge receipt of
the circular to our Regional Offices.
Yours faithfully,
(S.Karuppasamy)
Chief General Manager-in- Charge
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