Master Circular on Maintenance of Deposit Accounts

India

(enacted in 2005)

Master Circular on Maintenance of Deposit Accounts (UBD.BPD(PCB)MC.No.9/13.01.00/2005-06) consolidates and updates all instructions/guidelines by the Reserve Bank of India on the subject of maintenance of deposit accounts up to June 30, 2005, including guidelines on agents and know-your-customer guidelines.

This Master Circular is organized as follows:

  1. Introduction;
  2. Opening of Deposit Accounts;
    • 2.1 Introduction of New Depositors;
    • 2.2 Photographs of Account Holders;
    • 2.3 Address of Account Holders;
    • 2.4 Other Safeguards;
  3. Restrictions on Opening Certain Types of Deposit Accounts;
    • Minor’s Account with Mother as Guardian;
  4. Nomination Facilities;
    • 4.1 The Act Provisions;
    • 4.2 The Rules;
    • 4.3 Record of Nomination;
    • 4.4 Nomination Facility for Deposit Accounts;
    • 4.5 Nomination Facility in respect of Articles in Safe Custody;
    • 4.6 Nomination in respect of Safe Deposit Locker Accounts;
  5. Operations in Accounts;
    • 5.1 Joint Accounts;
    • 5.2 Monitoring Operations in New Accounts;
    • 5.3 Monitoring Operations in all Accounts;
    • 5.4 Issue of Cheque Books;
    • 5.5 Dormant Accounts;
    • 5.6 Operation of Banks Accounts by Old/Sick/ Incapacitated Customers;
    • 5.7 Receipt of Foreign Contributions by various Associations/Organisations in India under Foreign Contribution (Regulation) Act, 1976;
  6. Deceased Constituents’ Accounts;
  7. Deposit Mobilisation;
    • 7.1 Deposit Collection Agents;
    • 7.2 Acceptance of Deposits by Unincorporated Bodies/Private Ltd. Companies with; “Bank Guarantee”;
    • 7.3 Deposit Collection Schemes Floated by Private Organisations;
  8. Other Aspects;
    • 8.1 Greater Co-ordination between Banking System and Income-Tax Authorities;
    • 8.2 Register for Unclaimed Deposits;
  9. “Know Your Customer” (KYC) Guidelines;
    • 9.1 KYC policy in respect of new accounts;
    • 9.2 Customer identification;
    • 9.3 KYC procedure for existing customers;
    • 9.4 Ceiling and monitoring of cash transactions;
    • 9.5 Risk Management and Monitoring Procedures;
    • 9.6 Obligation to maintain confidentiality; and
  10. “Know Your Customer” (KYC) Guidelines – Anti Money Laundering Standards.

This master circular consolidates 45 circulars (see attached for further details).