Opening of Proprietorship/ HUF/ Liquidator/ Trust/Govt. accounts in banks
While opening opening Current Accounts of all categories of depositors including proprietors, partners, trustees, settlers, beneficiaries those holding power of attorney, founders, managers, directors, etc. the customers need to submit ‘know your customer’ related official valid documents of the entities and natural persons behind the entities. As per RBI guidelines, in addition to seeking NOC…
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What are deficiencies in regulatory and KYC compliances for which banks pay penalties?
Regulatory compliance aims to ensure the bank operates within regulation, safeguarding its integrity and industry reputation. The function oversees multiple duties: protecting bank data, avoiding government fines, avoiding tax evasion, complying with KYC guidelines, monitoring and reporting anti-money laundering activities, assessing risks, and ensuring zero violation of banking ethics. Following are the few cases where…
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Why exporters maintain EEFC Accounts in banks?
Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category – I bank i.e. a bank authorized to deal in foreign exchange. In this scheme of bank accounts, the exchange earners who are residents of India, such as individuals, companies, etc., SEZ developers (except SEZ Units) can…
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RBI guidelines on opening and operation of current accounts and CC/OD accounts by banks
RBI today (19.04.2022) issued a consolidated circular for the opening and operation of current accounts and CC/OD accounts by banks with a view to enforce credit discipline amongst the borrowers as well as to facilitate better monitoring by the lenders. Banks may compute the aggregate exposure of the prospective customers based on the information collected…
Read article RBI notifies revised guidelines for Opening of Current Accounts by Banks
Today (02.11.2020), RBI announced that banks may ensure compliance with the instructions contained in their Circular dated August 6, is extended up to December 15, 2020. In its circular of August 6, RBI said in respect of the opening of current accounts banks shall comply with all the instructions contained therein the circular. For existing…
Positive Pay Cheque truncation system to be implemented from January 01, 2021
In its Statement on Developmental and Regulatory Policies dated August 6, 2020, wherein Reserve Bank of India (RBI) had announced the introduction of the Positive Pay System for Cheque Truncation System (CTS). On September 25, 2020, RBI has issued a circular stating that the Positive Pay System shall be implemented from January 01, 2021, for…
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