Far away in memory, statutory auditors have been using “external confirmations” to obtain balance confirmations in respect of accounts receivables, accounts payables, bank balances, loans, investments, or inventories held by third parties, etc. from various parties, including banks. In other words, external confirmations mean audit evidence obtained as a direct written response to the auditor…
Video-based Customer Identification Process (V-CIP) is an alternate method of customer identification with facial recognition and customer due diligence by an authorised official of the Regulated Entities (REs) like banks and other financial institutions. In the V-CIP process your KYC documents and signature are verified on a real-time basis through seamless, secure, live, informed-consent-based audio-visual…
In the month of March 2023, the Finance Ministry amended the Prevention of Money Laundering Act (PMLA) and rules in line with the recommendations of the FATFwhich is the global money laundering and terrorist financing watchdog. In India, the Prevention of Money-Laundering Act, 2002 and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, as…
Pursuant to a recent amendment to KYC Master Direction, RBI on Thursday (May 4) advised Regulated Entities (RE) like banks and financial institutions to undertake certain measures while dealing with the Wire Transfer in terms of said amendment. Information requirements for cross-border, as well as domestic wire transfers in terms of the latest guidelines, are…
The Customer Due Diligence (CDD) measures in the case of non-individual customers, individual customers, and Sole Proprietary Firms have been amended in the latest Master Direction dated April 28, 2023, on KYC to include certain additional information/document requirements. (a) Companies: (i) The names of the relevant persons holding senior management positions; and (ii) The registered…
The Reserve Bank of India on April 28, 2023, carried out certain amendments to KYC Master Direction 2016. Key changes are as under; Identification of beneficial owner: The threshold limit for ‘controlling ownership interest’ for the purpose of the beneficial owner (BO) has been revised to 10 percent both for companies and trusts from earlier…
Reserve Bank of India on Wednesday issued various guidelines to the Regulated Entities (Financial institutions like banks and NBFCs) to ensure reasonableness and transparency in the disclosure of penal interest. Under the extant guidelines, lending institutions have the operational autonomy to formulate Board approved policies for the levy of penal rates of interest. It has…
Fake Currency Note is a term used to refer to counterfeit currency notes. The fraudster may print imitation (Counterfeit) currency notes and cheat unsuspecting individuals by handing over them as real money. Authority to impound counterfeit notes: The Counterfeit Notes can be impounded by all Banks, Issue Offices of Reserve Bank of India. The notes…
In today’s Statement on developmental and regulatory policies, RBI said that it would set up a centralised portal to access details of unclaimed deposits by depositors or their beneficiaries across various banks. The overdue deposits or balances held in inoperative accounts remaining unclaimed for 10 years are transferred to the “Depositor Education and Awareness” (DEA)…
Updated as per RBI Master circular dated April 3, 2023 All bank branches are required to display at their branch premises, at a prominent place, a board indicating the availability of note and coin exchange facility with the legend, “SOILED/ MUTILATED NOTES AND COINS ARE ACCEPTED AND EXCHANGED HERE” for information about the general public.…