IS SSN really required for Extended KYC of NRIs & Americans at HDFC Bank ?

Petition

I have been reading reviews of HDFC customers who are NRIs and American citizens and I agree that by asking American customers to share their Social Security Number for KYC , HDFC is making them vulnerable to identity theft and fraud risk in India . Indian banks have no sense of information security as it is.  SSN is tied to medical records too. In America too , people think twice before sharing SSN and thst too in its entirety . NRI customers may have no choice but to consider closing their accounts with HDFC bank for this reason . One is even advised to only share the last 4 digits of Aadhaar Card and so why should it be any different for SSN at Indian banks ?  

In my view, self-attested copies of Passport , OCI , Pan Card or Aadhaar card in addition to address proof in India/Abroad should be sufficient to establish identity of a customer. 

HDFC like Axis Bank should consider other alternatives instead of asking NRI customers to provide SSN. No wonder most NRIs are opting for Axis Bank as that bank is NRI friendly bank and gives importance to the security of NRI customers. In fact, people in my circle have never ever been asked for their SSN or even State ID cards at Indian banks. There should be One Rule for All Customers & RBI should ensure uniformity in rules for all Indian banks so that each bank does not interpret those rules differently!  They should provide a booklet of instructions to NRIs and Foreign Nationals so that banks don’s harass them. Accurate information and valid alternatives concerning bank processes for NRIs are required ! 

In the absence of TIN, any other document should be acceptable.It is written in the Extended KYC form that “ incase TIN is not available, kindly provide functional requirement”.

Therefore, why is HDFC being so rigid about it ? 

HDFC should provide clarity on the modes of submission of documents for Re KYC / Extended KYC that a NRI customer has a right to as well as explore valid alternatives as a “functional equivalent “ for SSN . At the bottom of the CBDT Terms and Conditions, on the Extended KYC form , it is also mentioned under “List of Acceptable documentary evidence needed to establish the  residence for tax purposes, valid Identification issued by an authorized govt. body ( e.g. Passport, National Identity Card ) can be accepted. 

I hope HDFC bank will find a deviation from that for all their American clients by researching as to how other banks like Axis Bank are going about it. And if even after that the bank insists on the requirement of SSN, then customers who are NRIs and foregn nationals have a right to know about the secure channels that are provided by the bank for handling such sensitive information. However, most clients will not readily accept that due to security concerns and may consider other banks here instead. Like I usually do, one will have to consult one’s lawyer or tax consultant too for advice before sharing one’s SSN with banks or anyone else.

One never feels comfortable sending one’s full SSN via email. The safest method would be to call the bank’s dedicated line if any and provide the SSN over the phone rather than transmitting it in a standard , unencrypted email. I wonder how HDFC can even think of asking its customers to provide a physical copy of the Social Security Card as that would be compromising the security of its customers ! Please note that submitting the same through Netbanking is also not an option as there are several errors and technical gliches in that process on their Netbanking’s both old and upgraded version.   

Is SSN really required at Indian banks for Extended KYC of bank customers who are GC holders and Americans? If it’s mandatory, it should be clearly mentioned in the hard copy of the KYC norms and Extended KYC forms as well as RBI circular. And then , One has a Right to Know as to how our securities our protected by the bank when SSN is demanded by Indian banks like HDFC!