Latest KYC amendment related to Customer Due Diligence (CDD)
Know Your Customer (KYC) standards are designed to protect financial institutions against fraud, corruption, money laundering and terrorist financing. KYC involves several steps to: establish customer identity; understand the nature of customers’ activities and qualify that the source of funds is legitimate; and. KYC involves several steps to (i) establish customer identity (ii)understand the nature…
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Many changes were made to KYC in the latest MD amendment
Keeping in view the anonymous and instantaneous nature of VDA transfers and the potential of services offered by SPs being misused by state and non-state actors for money laundering, terror financing, and proliferation financing, all SPsmust have a robust mechanism in place for complying with KYC requirements before on-boarding of clients/ wallets as well as…
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Fair Lending Practice – Penal Charges in Loan Accounts: RBI issues draft circular
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…
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What bank can do if you deposit a fake note in the bank?
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…
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RBI to set up a centralised portal to access details of unclaimed deposits
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)…
The Rule for Exchange of Soiled, Mutilated, and Imperfect Notes in Banks
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.…
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