Mumbai: Noting an increase in re-activation of dormant accounts post-demonetisation, the Reserve Bank of India (RBI) on Tuesday said the genuineness of the transactions must be ascertained with ‘due diligence’ in the process.
“Operation in dormant accounts with banks may be allowed after due diligence as per risk category of the customer. As stated therein, ‘due diligence’ would mean ensuring genuineness of the transaction, verification of the signature and identity etc,” RBI said in a notification here.
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, it said.
“Regulated entities shall, among others, 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,” it added.
RBI asked the banks to ensure compliance as applicable on activation of dormant accounts, customer due diligence and record management, scrupulously.