The Reserve Bank of India has issued a new instruction regarding the submission of KYC i.e. customer information. Following relevant suggestions from the Financial Action Task Force (FATF), the central bank has issued fresh instructions regarding KYC. In this, banks and financial institutions have been asked to strictly follow it.
FATF resolutions implemented
The Reserve Bank has given this instruction regarding wire transfer. RBI has asked banks and other financial institutions to maintain complete details of both the sender and the receiver of money in all cases of wire transfers, be it domestic or cross-border transactions. In this regard, the Reserve Bank has updated the instructions contained in the Master Direction on Know Your Customer and implemented relevant FATF recommendations.
This work has to be done in domestic transactions
According to a media report, the Reserve Bank has said in the updated instructions of the Master Direction that in the case of all cross-border wire transfers, there should be complete and correct information of both the originator ie the sender of the money and the beneficiary ie both. The money should be kept by the recipient. On the other hand, if the wire transfer is domestic and the money sender is the account holder of the concerned institution, then in such a situation, complete information of both the money sender and the receiver should be taken.
In the updated instructions, the RBI said that in case of domestic wire transfer of Rs 50,000 or more and the sender is not an account holder of the concerned institution or bank, the information of both the sender and the recipient should be known in such a case. be presented in the same manner. should be done, as is done in cases of cross border wire transfers.
provide information when needed
The Reserve Bank said that in all cases of wire transfer, it is the responsibility of the bank or financial institution to submit KYC information from where the money is being sent. These banks and other financial institutions will have to provide information about the originator and beneficiary of the wire transfer to the investigating authorities, if required.
Read the Latest India News Today on The Eastern Herald.
