Wednesday 17 July 2013

‘KYC’ need not be taken lightly:

As prescribed by the Reserve Bank of India, the programme like KYC (Know your customer)/ anti money laundering norms compulsorily to be adhered to by all the banks is normally taken by the respective banks and equally by the customers in a lighter way. This resulted into Reserve Bank of India imposing a fine to the tune of 49.5 crores on 22 private and public sector banks including the giant banks like State Bank of India and Punjab National Bank for violating the norms so laid down in terms of ‘Know your customer’. ‘Know your customer’ is a small form which the bankers are required to get duly filled in by their customers from time to time as an anti money laundering measure. The customers too hardly take it seriously with the result that their relative bank accounts continue to be irregular in the absence of their updated bonafides and credentials. This is not only just a matter of a routine formality on the part of the  banks, more than that it is equally the responsibility of the customers concerned to ensure that there is nothing limping in the matters of their records with the banks. The measure is in the interest of both the banks and the customers and is supposed to be duly adhered to by them. Penalty imposed by the Reserve Bank of India is not an end of the problem in to itself, it rather requires more stringent an action to ensure the needful.

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