The Reserve Bank of India (RBI) has asked all banks to generate a unique identification code for each of their customers. It will strengthen Know Your Customer (KYC), Anti-Money Laundering (AML) and Combating the Financing Of Terrorism (CFT) mechanisms.

RBI has said that since the formation of the entire KYC Registry would take a long time, banks should immediately start generating the Unique Customer Identification Code (UCIC). To begin with, RBI has asked banks to initiate steps for allotting UCIC to all their customers while entering into any new relationships.

Similarly, RBI has suggested banks to allot UCIC to existing individual customers by end-May 2013. According to RBI, UCIC will help banks to identify customers, track the facilities availed and monitor financial transactions in a holistic manner. It will also provide banks with a better approach while risk profiling their customers.

RBI has also taken several initiatives to arrest the fall of rupee against dollar . It has permitted NRIs to send remittances more frequently. According to a latest RBI circular released on Friday, resident Indians are now allowed to receive as many as 30 remittances from NRI friends and relatives during a year as against 12 earlier.

In the circular addressed to authorised Indian agents under the Money Transfer Service Scheme (MTSS), RBI directed them to bring this to the notice to sub-agents as well and ensure the adherence to the guidelines. Analysts said that RBI decision would boost foreign currency inflows and check rupee fall.

The Indian currency has been declining continuously since March and touched a historic low of 56.38 to a dollar last month.