RBI warns banks to strictly follow KYC rules

MUMBAI Sat Jul 13, 2013 12:01am IST

A labourer works on the sign of a bank building in Ahmedabad November 26, 2010. REUTERS/Amit Dave/Files

A labourer works on the sign of a bank building in Ahmedabad November 26, 2010.

Credit: Reuters/Amit Dave/Files

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MUMBAI (Reuters) - The Reserve Bank of India (RBI) on Friday asked banks to strictly adhere to customer identification and anti money laundering rules for walk-in customers when selling insurance, mutual fund, gold and any other products above 50,000 rupees.

The RBI added its admonition comes after observing that some banks were not complying with "know-your-customer" rules for walk-in customers.

"It is reiterated that banks should meticulously follow the instructions in letter and spirit and ensure that violations of the above nature do not recur. Such violations would be viewed seriously by the Reserve Bank and would involve imposition of penalties," the RBI said in its release.

(Reporting by Suvashree Dey Choudhury; Editing by Rafael Nam)

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