Mumbai: Setting up of a centralised KYC (know your customer) registry for the entire financial sector will be possible only after implementation of the unique customer identification code (UCIC), RBI Executive Director G Padmanabhan said Tuesday.
"Once the UCIC is implemented across banks and FIs, it would be feasible to move towards a centralised KYC registry, which will eliminate duplication of efforts and refine the KYC/AML (anti-money laundering)/CFT(combating of financial terrorism) verifications across the financial system," he said addressing a banking event here.
Earlier, the government had formed a working group to suggest ways to introduce unique identifiers for customers across different banks and financial institutions to set up a centralised KYC registry.
Banks have also been advised by the government to issue UCIC to individual customers for facilitating the formation of a centralised KYC registry.
Markets regulator Sebi is also advocating a one-time KYC requirement across the financial services sector.
The RBI official further said the Aadhaar card will complement the efforts in this direction as it has the potential as an authentication tool in financial transactions.
First Published: Tuesday, October 9, 2012, 22:18