Why did regulators decide to decommission LIBOR?
Edited and updated on 12.05.2023 ”LIBOR”, once labeled as the world’s most important benchmark was discredited because of the 2008 financial crisis when authorities in the United States and Britain found traders had manipulated it to make a profit that sparked an investigation by Britain’s Financial Services Authority (FSA). The LIBOR rigging scandal of 2008…
Read article
Why your bank insists on insurance cover for 120% value of inventories?
The working capital limit (generally known as cash credit limit) is sanctioned by banks and financial institutions to industrial and trading establishments for their investment in various types of current assets typically including raw materials, work in progress, finished goods, and office supplies, used in the operating cycle. This facility offers the borrowers flexibility and…
Read article
Levy of charges on forex prepaid cards/store value cards/travel cards, etc.
Certain instruments like International Debit Cards/Store Value Cards/Charge Cards/Smart Cards or any other instrument that can be used in India to create a financial liability, as ‘currency’. The banking regulator Reserve Bank of India observed that a few Authorised Persons are levying certain fees/charges, which are payable in India on such instruments, in foreign currency.…
Read article
V-CIP process for online KYC of individuals, proprietor and companies
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…
Read article
Amendment to prevention of money laundering act and impact
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…
Amendment to KYC: Measures while dealing with the Wire Transfer
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…
Read article