By Accommodation Times News Bureau
The Reserve Bank of India has extended the deadline for banks to complete the process of allotting a unique identification code to their customers to March 31, 2014. The Banks however will have to allot the unique customer identification code (UCIC) to all customers while entering into new relationships. RBI said some banks had expressed difficulties in implementing UCIC due to various reasons and has sought more time to allot UCIC to their existing account holders.
RBI said in a notification, keeping in view the constraints the time for completing the process of allotting UCIC to existing customers is extended up to March 31 2014. We however reiterate that UCIC should be allotted to all customers while entering into new relationships.
The increasing complexity and volume of financial transaction necessitate that customers do not have multiple identities within a bank, across the banking system and across the financial system, RBI had said.
A working group by the government had proposed introducing the unique identity for a customer across different banks and financial institutions for setting up a centralized KYC (know your customer) registry. The objective of the UCIC is to help banks identify customers, track facilities availed, monitor financial transactions in a holistic manner and to have a better approach to risk profiling of customers. It also helps in smoothening banking operations for the customers.