compliance | Common News Update

Nov22020 by adminNo Comments

RBI extends deadline for banks’ compliance with new guidelines for existing current accounts

Finance

KOLKATA: The Reserve Bank of India has given more time to banks to comply with the revised current account opening norms to ease their operational glitches. The regulator changed the rules to prevent the misuse of the current account facility and fund duversions. The new deadline is December 15 instead of November 5. RBI suggested that banks should not route drawal from term loans through current accounts. Since term loans are meant for specific purposes, the funds should be remitted directly to the supplier of goods and services. The regulator also barred banks from opening current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system. It suggested that all such transactions shall be routed through the CC/OD acco...

Jun42020 by adminNo Comments

RBI allows relaxation to payment operators on various compliance deadlines

Finance

MUMBAI: In a move set to bring relief for payment companies and banks, the Reserve Bank of India has relaxed timelines prescribed for compliance with recent regulatory and security related guidelines. With companies operating with limited workforce due to the coronavirus pandemic, and several of these due dates on compliance soon set to lapse, many players were staring at missed deadlines. “Keeping in view the present situation it has been decided to extend the timeline for compliance in respect of a few areas…” the central bank said in a circular. Among those instructions on which timelines have now been extended include enhancement of security features on card from the earlier June 16, 2020 to the new deadline of September 30, 2020. Similarly, players have also been given four-month exte...

Apr22019 by adminNo Comments

Revolut whistleblower had concerns over CEO conduct and compliance

Technology

The Financial Conduct Authority has made enquiries into currency transfer firm Revolut after being contacted by a whistleblower, the BBC has learned.The ex-employee told the FCA in 2016 about concerns they had over compliance and the conduct of the firm's chief executive, Nikolay Storonsky.The FCA informed the whistleblower via email that "our investigation is now coming to a close", a year later.Revolut told the BBC this is the first it has heard of the complaint.The financial technology company bills itself as a "digital banking alternative", although it does not have a UK banking licence. The firm does have an e-money licence which allows it to operate.The company provides app-based accounts to millions of customers and allows...

Apr212018 by adminNo Comments

RBI makes Aadhaar key to KYC compliance

Finance

The Reserve Bank of India (RBI) has made linking of national biometric ID Aadhaar to bank accounts mandatory as part of its updated 'Know Your Customer (KYC)' guidelines. This, however, will be subject to the final decision of the Supreme Court on making of Aadhaar mandatory, RBI said in a circular late last night. Till now, an Officially Valid Document (OVD) for address proof together with Permanent Account Number (PAN) issued by the Income Tax department and a recent passport size photograph were the key KYC documents. But in the amended Customer Due Diligence (CDD) procedure, RBI said, "The Aadhaar number, the PAN or Form No. 60" need to be obtained from an individual who is eligible for applying for the biometric ID. Sources said that the move will facilitate trusted environment for ba...