What changed
This Master Circular supersedes the July 2, 2012 version, consolidating all guidelines issued up to June 30, 2013. It updates instructions on account opening, nomination, operations, settlement of deceased depositor claims, and KYC/AML standards for UCBs.
What it means for you
UCBs must ensure their deposit account policies align with the latest consolidated guidelines to prevent fraud and ensure compliance. The circular reinforces vigilance in account opening, monitoring operations, and timely settlement of claims. Non-compliance could lead to regulatory action.
What you must do
- Review and update internal deposit account policies to match the consolidated guidelines.
- Train staff on enhanced KYC/AML procedures and fraud prevention measures.
- Ensure nomination facilities are offered and claims settlement timelines are met.
- Maintain registers for unclaimed deposits and inoperative accounts as specified.
- Coordinate with income tax authorities as per the circular's guidance.
Who it affects
Primary Urban Co-operative Banks (UCBs), Deposit account holders of UCBs, Compliance and operations teams at UCBs
What is the main purpose of this Master Circular?
It consolidates all existing instructions on deposit account maintenance for UCBs up to June 30, 2013, to ensure uniformity and reduce fraud risks.
Does this circular apply to all types of deposit accounts?
Yes, it covers savings, current, term deposits, NRE/NRO accounts, and safe custody/locker facilities, with specific sections for each.
What are the key compliance actions for UCBs?
Update policies on account opening, nomination, operations, KYC/AML, and claims settlement. Train staff and maintain required registers.