What changed
RBI clarified that banks cannot insist on opening new accounts or redoing full KYC when customers transfer accounts within the same bank. For CBS-enabled banks, existing KYC records are accessible across branches, making repeated verification unreasonable.
What it means for you
Banks must streamline branch transfer processes, reducing customer friction and operational overhead. This aligns with digital banking capabilities, but banks still need to collect updated address proof and adhere to periodic KYC updation and record-keeping rules.
What you must do
- Update branch transfer policies to accept existing KYC without fresh verification.
- Ensure CBS systems allow seamless access to customer KYC records across branches.
- Collect fresh address proof from customers upon account transfer.
- Continue periodic KYC updation and record maintenance as per existing master circular.
- Acknowledge receipt of this circular to the respective RBI regional office.
Who it affects
All Primary (Urban) Co-operative Banks, Branch managers handling account transfers, Customers seeking intra-bank account portability
Can a bank ask for full KYC again when a customer transfers an account to another branch?
No, as per this circular, if full KYC was already done for the account, it remains valid for intra-bank transfers. Only fresh address proof may be required.
Does this circular apply to non-CBS banks?
Yes, the instruction applies to all primary urban co-operative banks. For CBS-enabled banks, the reasoning is stronger since KYC records are centrally accessible.
Are periodic KYC updation rules changed by this circular?
No, the existing requirements for periodic KYC updation and record maintenance remain unchanged as per the referenced master circular.