Deadline for banks to allot unique ID to customers extended

The Reserve Bank has extended the deadline for banks to complete the process of allotting a unique customer identification code to their customers to March 31, 2014.

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 have sought more time to allot UCIC to their existing account holders."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," RBI said in a notification.

RBI had last asked banks to allot UCIC to all their customers while entering into any new relationships for individual customers to begin with, and to existing individual customers by end-May 2013.

The increasing complexity and volume of financial transactions 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 centralised 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 to smoothen banking operations for the customers.