Steps for Cooperative Banks in India to Start Becoming RBI KYC Norms

Last Updated: 5 August 2013

Reserve Bank of India, in the last few years, has been regularly imposing financial penalties on cooperative banks for violating the all important Know Your Customer (KYC) norms or the Anti-Money Laundering (AML) guidelines. They have been advised by RBI circulars to adhere to the KYC norms diligently, in order to prevent criminal elements from indulging in money laundering or terror financing activities... See more

Is it really that difficult to establish foolproof RBI KYC compliance process
within Banks in India?

Last Updated: 26 July 2013

Reserve Bank of India (RBI) concluded its first round of investigation by announcing on June 10, 2013 financial penalties on the big 3 private sector banks. Penalties of INR 100 million+ imposed on all the 3 banks put together may not seem much. For these banks, what would remain unaccounted and expensive is the extent of their senior management’s bandwidth that would have got consumed during the last few months, since the first round of Cobrapost’s exposé in middle of March, 2013... See more

Cloud Cover for Indian Financial Institutions Reeling Under Cobrapost's KYC,
Money Laundering Allegations

Last Updated: 19 July 2013

Cobrapost’s recent money laundering allegations against almost all the top private, public sector commercial banks and life insurance companies, point to a systemic problem with the financial sector in India. This has been now corroborated by RBI’s investigation report, leaked to Times of India, wherein RBI has found that usage of dummy PAN and identity cards of unknown NROs, unauthorized gold sales and non-compliance to know your customer norms are rampant among banks. In a country where corruption among politicians seems to be boiling over, while bureaucrats run regulators are in a denial mode, financial institution’s senior management seems to be taking big hit on their personal and institutional reputation... See more