RBI tells banks to ease intra-bank accounts portability
Customers who have provided full KYC details to the bank once can shift their accounts between branches without the need to open fresh accounts or go through KYC process all over again
Banktech India News Network, 4/30/2012 10:53:00 PM
In a bid to make it easier for customers to transfer their
accounts between two branches of the same bank, the Reserve Bank of
India (RBI) has asked all banks to allow such transfer without the
customers having to open fresh accounts or go through the KYC (know
your customer) process all over again if those details have already
been provided to the bank.
Reacting to the reports of instances where banks have asked
customers to open fresh accounts just to switch between the
branches of the same bank, the Central Bank said that such
insistence on opening of fresh account or making the customer
undergo full KYC process again causes inconvenience to them
resulting in poor customer service. “It is not reasonable in
view of the fact that most bank branches are now on CBS and KYC
records of a particular customer can be accessed by any branch of
the bank,” said RBI.
“Banks are advised that KYC once done by one branch of the
bank should be valid for transfer of the account within the bank as
long as full KYC has been done for the concerned account. The
customer should be allowed to transfer his account from one branch
to another branch without restrictions,” read RBI
notification.
The banking regulator also said that in order to comply with KYC
requirements of correct address of the person, fresh address proof
may be obtained from him/her upon such transfer by the transferee
branch.
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