Tuesday, August 9, 2016

KYC rules in banking system have been simplified considerably: Raghuram Rajan

In his last monetary policy review RBI Governor Raghuram Rajan stuck to the script and left key policy rates untouched. But there were several key messages that he left for the ordinary citizen including the simplified Know Your Customer norms and another warning for the public to avoid fraudulent emails. 

The KYC rules, which as per the Governor was one of the biggest sources of harassment for customers in the banking system has been simplified considerably. "These (KYC norms) have been simplified considerably in the recent past but sometimes the local branch may not know it," Rajan said. "If your branch does not know these simplified norms please go to the RBI webpage and point it out to them you will be doing a public service." 

Dr Rajan also pointed out that under the new KYC rules a customer can self-certify change in address without visiting a bank branch. The new KYC rules can be accessed on the RBIs webpage under the "FAQs for KYC" section. 

Rajan once again warned the public against e-mails promising millions of dollars if bank account details are shared. 

"If you get an email from me or any future Governor promising to say a large sum say Rs 50 lakhs to you if only you send a small transaction fee of Rs 20000 to a specific bank account delete the email immediately," Rajan said. "The reality is such emails are not from me and the RBI does not give out money directly to ordinary citizens even though we print plenty of it."

Source : The Economic Times

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