The RBI Monetary Policy Statement provides an insight to the regulators plans for the Indian Banking Industry, for the coming financial year.
Once the Monetary Policy Statement is announced, various RBI Departments get into action, and the detailed guidelines start rolling in.
Today’s Post is with reference to the following point:
“Unique Customer Identification Code for Banks’ Customers in India”
Yes, Indian Banking Customers will have one more number which they have to remember.
The ultimate goal is to have a single UCIC for the bank customer across all banks. A working group has been constituted by Government, towards this.
However, as the modalities are not yet finalized, Banks have been advised to
Initiate steps to allot UCIC number to all their customers while entering into any new relationships in the case of all individual customers to begin with.
Similarly, existing individual customers may also be allotted unique customer identification code by end-April 2013.
The major challenges banks will face is in the dedupe of the data. Dedupe means removing the duplicate entries from a list or database.
The private sector banks have over the years taken steps to ensure that one customer is not allotted multiple UCIC’s, as they had the advantage of starting from a clean state.
The pubic sector banks will have to lay down policies for merger of UCIC’s with similarities. The similarities might be the same Income Tax PAN number/Passport number or address. As the PAN number is captured in the CBS (Core Banking System) of almost all banks, dedupe based on this criteria, can easily be reviewed.
What are the benefits of a UCIC?
Enabling tracking of the facilities availed,
To monitor financial transactions in various accounts,
To improve risk profiling,
A holistic view of customer profile
To smoothen banking operations for the customer
Another advantage is that a single UCIC across banks will also reduce the leakages in the Government payouts. That will be covered in another Blog Post.
The UCIC is expected to be created on the basis of a Valid Identify Proof and Address Proof.
Once the UCIC is allotted to a customer, he/she should not face any problem while seeking transfer of his/her accounts from one Bank branch to another branch of the same bank. All the related accounts attached to the UCIC should be transferred, unless the customer desires otherwise.
The customers might be provided with the option to shift their base branch on the bank’s internet banking suite too.
This is a good time for AADHAR to be the preferred Identity mode, as eventually the complete Indian population is expected to have an AADHAR number. In April 2012, the Government has given the nod for merging the AADHAR and PAN databases