JOIN USTo enable non-banking finance companies (NBFCs) build a centralised know-your-customer (KYC) registry and thereby eliminate the scope for multiple identities, the Reserve Bank of India has proposed that such companies should allot unique identity code for each customer.
In a release issued on Friday, it said that the advice follows the proposal made by the Working Group constituted by the Central government.
It advised non-banking finance companies to commence spade work to issue unique customer identification code (UCIC) to “identify customers, track the facilities availed, monitor financial transactions in a holistic manner” and enable non-banking finance companies to have a better approach to risk profiling of customers.
It would also smoothen NBFC's operations for the customers.
The exercise of issuing UCIC for existing customers should be done by end of June 2013, while all new customers will have to be issued UCICs while entering into a relationship, the Reserve Bank of India said.