According to RBI, some banks were not complying with "KYC" rules for walk-in customers.
The Reserve Bank of India (RBI) on Friday asked banks to strictly adhere to customer identification and anti money laundering (AML) rules for walk-in customers when selling insurance, mutual fund, gold and any other products above Rs. 50,000.
“Recent investigations by the Reserve Bank in the light of alleged violation of KYC / AML guidelines by several banks have shown that these guidelines have been violated, particularly in the case of walk-in customers. It has been found necessary to reiterate and strengthen certain existing guidelines on KYC / AML / CFT (Combating of Financing of Terrorism) for strict compliance.” the RBI said in notification on Friday.
The RBI added its admonition comes after observing that some banks were not complying with "know-your-customer" rules for walk-in customers.
"It is reiterated that banks should meticulously follow the instructions in letter and spirit and ensure that violations of the above nature do not recur. Such violations would be viewed seriously by the Reserve Bank and would involve imposition of penalties," the RBI further said.
The Reserve Bank of India (RBI) on Friday asked banks to strictly adhere to customer identification and anti money laundering (AML) rules for walk-in customers when selling insurance, mutual fund, gold and any other products above Rs. 50,000.
“Recent investigations by the Reserve Bank in the light of alleged violation of KYC / AML guidelines by several banks have shown that these guidelines have been violated, particularly in the case of walk-in customers. It has been found necessary to reiterate and strengthen certain existing guidelines on KYC / AML / CFT (Combating of Financing of Terrorism) for strict compliance.” the RBI said in notification on Friday.
The RBI added its admonition comes after observing that some banks were not complying with "know-your-customer" rules for walk-in customers.
"It is reiterated that banks should meticulously follow the instructions in letter and spirit and ensure that violations of the above nature do not recur. Such violations would be viewed seriously by the Reserve Bank and would involve imposition of penalties," the RBI further said.
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