RBI/2004/259
DBOD.AML.BC.No.101/14.01.001/2003-04 June
21, 2004 The Chief Executives of all Commercial Banks
(excluding RRBs) Dear
Sir, Guidelines on KYC Norms - Existing Accounts - Please
refer to our circular DBOD.No.AML.BC.18/14.01.001/2002-03
dated August 16, 2002 on the above subject. It was advised in paragraph 3 of the
above circular that in case of any omission in respect of the existing accounts,
KYC procedures may be completed at the earliest. Further, vide our circulars DBOD.AML.No.47/14.01.001/2003-04
and 129/14.01.001/2003-04 dated November 24 and December 16, 2003 respectively,
banks were advised to complete the KYC procedure in regard to existing accounts
as per the time scheduled prescribed therein.
- In
this connection, please refer to paragraph No.126 of the annual policy statement
for the year 2004-05 forwarded to you along with Governor's letter No.MPD.BC.249/07.01.279/2003-04
dated May 18, 2004.
- We
presume that you have already formulated a KYC policy in consultation with your
Board, which should be adhered to for opening all new accounts. However, with
a view to ensuring that existing small account holders are not inconvenienced
and the KYC procedure is completed in time, it has been decided that banks may
limit the application of KYC procedures to existing accounts where the credit
or debit summation for the financial year ended March 31, 2003 is more than Rs.10
lakh or where unusual transactions are suspected. This process may be completed
by December 31, 2004.
- Banks
may, however, ensure that KYC procedures are applied to all existing accounts
of trusts, companies/firms, religious/charitable organisations and other institutions
or where the accounts are opened through a mandate or power of attorney. The KYC
procedures may be applied diligently to suit local conditions and completed by
December 31, 2004.
Yours
faithfully, (Prashant
Saran) Chief General Manager
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