Customers are the very purpose for Banks existence and to let go an existing customer is not an ideal situation. Every effort must be taken to ensure that a customer continues to be associated with the Bank. However, there can be scenarios when some of customer's account have to be closed by the Bank.
This document intends to illustrate one such scenario of closure of IPPB DGSBA accounts that have completed a year and have not been subjected to required due diligence(CDD) within stipulated timeline. Customer's account may need to be closed owing to regulatory requirement and steps required to be taken along with the related process to be fol towed in such eventualities are documented here.
Bank facilitates customer to open and operate accounts using OTP based e-KYC, in non-face-to-face mode, as permitted by RBI subject to certain operational conditions. Excerpts from Master Direction
DBR.AML.BC.No.81/14.01.001/2015-16 last updated as on 09.08.2019, in this regard, are as below
• Accounts, both deposit and borrowal, opened using OTP based eKYC should not be be allowed for more than one year within which identification as pcr Scction 16 is to he carried out.
• If the CDD procedure as mentioned above is not completed within a year, in respect of deposit accounts, the same shall be closed immediately. In respect of borrowal accounts no further debits shall be allowed
As a direct consequence to above conditions, all accounts opened with DGS BA scheme, must either be subjected to Re-KYC within I year or be closed immediately post completion of 1 year.
