Date: December 06, 2016
All Regulated Entities (REs)
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
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.
Chief General Manager – in – Charge