Kyc Norms

KNOW YOUR CUSTOMER GUIDELINES What is meaning of KYC? -KYC means Know Your client. -From the contour 2002, the Reserve Bank of India has asked all banks to meticulously obey KYC guidelines in all sexual conquests. KYC involves the following four steps i.e (i) Proper quotation of every customer while paying account in his name (ii) Establishment of data on the customer to fit in his profile (iii) Monitoring transaction in his account to witness that it is not used to bills laundering, and (iv) jeopardy Management. -Like AML [Anti money Laundering], the main purpose of KYC guidelines is to prevent Money laundering and as well as to prevent the use of the banking system by fraudsters. -The RBI, as the adjust authority, has issued AML and KYC guidelines in line with international standards to be followed by banks in India. These guidelines have been issued by RBI Sec. 35A of the BR Act and accordingly they are directive and non adherence to the said(prenominal) at tracts penalties. -RBI has tell all banks to formulate their own policy on KYC in line with these guidelines and get it approved by their dining table of directors and follow the same meticulously.

This policy should broadly deal with quaternary core turn out Components of KYC guidelines namely (a) Customer Acceptance constitution [CAP] (b) Customer acknowledgment Procedure [CIP], (c) Monitoring of the transactions (d) Risk Management A.Customer Acceptance Procedure [CAP] -While accepting a customer, banks native take care of the following points. 1.Banks must not indeterminate accounts in fictitiou s /benami /nick manes. 2.While opening acco! unt, banks should estimate the carry on associated with the customers with the customer and categorize the customers assay as per their risk perceptual experience into Low Risk, Medium Risk, High Risk and exceptional risk to be called RIP-Two-Three and RIP-Exceptional respectively. 3.Banks must obtain identity proof, mete out proof, customer profile and also other documents as necessity for opening such account as per Rule 9...If you requisite to get a full essay, order it on our website: BestEssayCheap.com

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