Unique Customer Identification Code (UCIC) for NBFC Customers in India


If you are customer of Non-Deposit taking NBFCs with assets of Rs 25 cr and above or any l Deposit taking NBFCs, be prepared to receive a brand new code for yourself.

RBI vide notification no RBI/2012-13/489 DNBS (PD).CC. No. 325/03.10.42/2012-13 dt May 03, 2013, has advised Non-Deposit taking NBFCs with assets of Rs 25 cr and above and All Deposit taking NBFCs, to make arrangements for issuance of Unique Customer Identification Code for NBFC Customers in India

The UCIC is to ease the monitoring of Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/Combating of Financing of Terrorism (CFT) in the Indian financial market.

Ideally, a centralized KYC Registry for customers across different Financial Institutions is the best solution. However, setting up such a system will take some more time.

This is expected to be similar as a common KYC registry for SEBI registered intermediaries.

W.e.f January 2012, SEBI has set out revised KYC norms to make the process uniform across Securities Market and introduced a common KYC application form for all the SEBI registered intermediaries viz. Mutual Funds, Portfolio Managers, Depository Participants, Stock Brokers, Venture Capital Funds, Collective Investment Schemes etc.

In the interim, RBIS has advised NBFCs to make an immediate beginning in this regard by putting in place such identification code for their own customers. The UCIC will help NBFCs to identify customers, track the facilities availed, monitor financial transactions in a holistic manner and enable NBFCs to have a better approach to risk profiling of customers. It would also smoothen NBFC’s operations for the customers.

 

Consequently, NBFCs have been advised to initiate steps for allotting Unique Customer Identification Code (UCIC) to all their customers while entering into any new relationships. Similarly, existing individual customers may also be allotted UCIC by end-June 2013.

The common identifier might be the Aadhaar Number or PAN Number. In the next couple of months, matters would be more clear.

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