KYC norms must be used to combat black money: RBI deputy governor

Tags: News
With increased threat of terrorism financing and black money, the banking sector must look into ardently following a stronger 'Know your Customer' norm base to address it. Also, the with the onset of globalisation, now that Indian banks are interacting much more with international banks, legal and regulatory measures must be taken to combat such issues, according to R Gandhi - deputy governor of the Reserve Bank of India.

He was at Hyderabad on Friday to address on 'Know your customer: A balance between compliance and convenience' at the Federation of Andhra Pradesh Chambers of Commerce and Industry.

“International obligations and inter-regulatory consensus built via the United Nations resolutions, Basel committees on banking supervision and the financial action task force also require that we put in place elaborate KYC framework in India,” he said.

According to him, the KYC framework will be relevant to the perceived risk and was not intrusive in nature.

"RBI’s aim is to safeguard banks from being used by criminals for money laundering activities and to enable banks to understand the risk posed by customers, products, services, delivery channels and help them manage their risk prudently," he said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • It will take at least 4 more quarters for corporate bottomlines to turn around

    Aggregate numbers from corporate results in the June quarter of 2014-15 are hardly different from the previous six quarters, with no positive surprise

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Dealing with a sin called insensitivity

Rage and the notion of being above the law — ...

Kuruvilla Pandikattu SJ

India’s greatest gift to the world

What we hear most often about India these days is ...

Gautam Gupta

Why must innerwear be our best kept secret?

While women’s outerwear rules the marketing roost in India, unfortunately, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture