Follow Due Diligence For Activating Dormant Accounts:RBI to Banks

Mumbai: With people thronging banks for depositing old notes in dormant accounts, the Reserve Bank today asked banks to strictly follow customer due diligence guidelines while allowing operations in such accounts.

"It has been reported that, of late, a lot of customers are approaching banks for re-activation of dormant accounts," the Reserve Bank said in a notification. In this regard, the RBI asked the banks that operation in dormant accounts "may be allowed" after due diligence as per risk category of the customer.

"Due diligence" would mean ensuring genuineness of the transaction, verification of the signature and identity, it added.

The RBI asked the banks to ensure compliance of its instructions on activation of dormant accounts, customer due diligence and record management, "scrupulously".

As part of the Customer Due Diligence Procedure, certified copies of officially valid documents for proof of identity and address are to be obtained while establishing an account based relationship.

Banks have to take steps for preserving the customer account information including preservation of records pertaining to the identification of the customers and their addresses obtained while opening the account, for at least five years after the business relationship is ended.

Following demonetisation of old Rs 500/1,000 notes from November 9, huge rush is being witnessed in banks all over the country for depositing the currency. The last date to deposit such notes with banks is December 30.

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