The Gujarat High Court has ruled that banks cannot freeze accounts nor can they stop issuing cheque book or providing ATM facility where the account holder has not supplied KYC (Know Your Customer) documents.
The court has further ruled that presence of the account holder was not a must for production of documents required
The ruling was given last week while hearing a petition seeking temporary bail filed by one of the convicts of the 2008 Patan gangrape case,serving a life term.
The convict had approached the court for temporary bail on the ground that he was required to remain himself present
at the State Bank of India branch to submit documents under KYC norms. If he did not submit KYC documents,the bank would freeze his account or stop other banking facilities,he claimed.
The court,however,did not appreciate the rule governing KYC norms.