Banks to Create “Unique Customer Identification Code”
The RBI has asked all banks to generate a Unique Customer Identification Code (UCIC) for each of their customers.
Objective: The Unique Identification Code will fortify Know Your Customer (KYC), Anti-Money Laundering (AML) and Combating the Financing Of Terrorism (CFT) instruments.
Since it will take a long time to generate entire KYC Registry, banks are instructed to immediately commence creating the UCIC and allot the code whilst making any new customers. RBI has suggested banks to provide UCIC to existing individual customers by end-May 2013
As per RBI, the UCIC will:
- Help banks to identify customers
- Help to track the facilities accessed & monitor financial transactions
- Empower banks with a better approach while risk profiling their customers
Month: Current Affairs - June, 2012