UBD No.UBD.BPD. PCB. Cir. 48 /09.161.00/2003-04
May 29, 2004
The Chief Executive Officers of
all Primary (Urban) Co-operative Banks
"Know Your Customer"
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 urban cooperative banks while opening accounts.
While complying with the above requirements, UCBs also collect a lot of additional
2. The Committee on Procedures
and Performances Audit on Public Services chaired by Shri S. S. Tarapore, has
observed that the information collected from the customer is being used for
cross selling of services of various products by banks. Sometimes, such information
is also provided to other agencies. The information provided by the customer
for KYC compliance while opening an account is confidential and divulging any
details thereof for cross selling or any other purpose would be in breach of
customer confidentiality obligations. Urban Cooperative Banks are, therefore,
advised to instruct their branch/es to strictly ensure compliance with their
obligations to the customer in this regard.
3. Wherever banks desire to
collect any information about the customer for a purpose other than KYC requirements,
it should not form part of the account opening form. Such information may be
collected separately, purely on a voluntary basis, after explaining the objectives
to the customer and taking his express approval for the specific uses to which
such information could be put.
4. Banks are advised to get
their existing practices in this regard examined by the Board / Administrator,
issue suitable instructions to their branch/es and ensure compliance.
5. Please acknowledge receipt
of the circular to our Regional Offices.
Chief General Manager-in- Charge