‘Banks can’t freeze accounts,cheque book,ATM if KYC not given’

The ruling was given on a petition by a convict seeking bail in a gangrape case.

Written by Press Trust Of India | Ahmedabad | Published:April 2, 2012 6:05 am

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

for KYC.

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.

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