What changed
RBI issued a circular on May 3, 2013, requiring NBFCs to implement a UCIC for all customers. This is an immediate step toward a centralized KYC registry proposed by a government working group. The UCIC aims to eliminate multiple identities within an NBFC and across the financial system.
What it means for you
NBFCs must now systematically assign a unique code to each customer, enabling better tracking of facilities and transactions. This will improve risk profiling and operational efficiency. The deadline for existing individual customers is end-June 2013, so compliance teams need to act fast.
What you must do
- Assign UCIC to all new customers at the time of onboarding.
- Allot UCIC to existing individual customers by end-June 2013.
- Ensure your system can generate and manage unique customer codes.
- Review KYC/AML processes to integrate UCIC for holistic monitoring.
Who it affects
Non-deposit taking NBFCs with assets of Rs 25 crore and above, All deposit-taking NBFCs, Compliance and KYC teams at NBFCs, Customers of these NBFCs
What is the purpose of UCIC for NBFCs?
UCIC helps NBFCs identify customers uniquely, track all facilities availed, monitor transactions holistically, and improve risk profiling. It also prevents multiple identities within the same institution.
By when must existing customers be assigned UCIC?
Existing individual customers must be allotted UCIC by end-June 2013. New customers must get UCIC at the time of entering into any new relationship.
Does this apply to all NBFCs?
The circular applies to non-deposit taking NBFCs with assets of Rs 25 crore and above, and to all deposit-taking NBFCs.