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                        Reserve Bank News
                        Reserve Bank News
                        Reserve Bank News
                        Reserve Bank News
                        Reserve Bank News

         RBI to banks: No a/c               it inconceivable for one-click purchases  pertaining to The Depositor Education
                                            on service provider websites from  and Awareness Fund scheme.
         freeze till Dec for want of        January 1, because it refused to in-  This action is based on the deficien-
         KYC                                crease its deadline for card       cies in regulatory compliance and is
                                            tokenisation past the agreed January
         The Reserve Bank of India (RBI) reit-                                 not intended to pronounce upon the
         erated that until December 2021,   1, 2022 date.                      validity of any transaction or agree-
         banks cannot freeze accounts if the  Tokenisation is utilized in on-line trans-  ment entered into by the bank with its
         customer has not done a periodic KYC  actions the place the precise card par-  customers, the central bank said.
         (know your customer) update. The   ticulars keyed in are changed by ran-  The central bank had conducted a
         central bank said this while cautioning  dom digits. This means, the client is  statutory inspection for supervisory
         the public not to fall prey to fraudu-  protected by stopping leakage of deli-  evaluation on the Kerala-based bank
         lent messages seeking bank details for  cate card particulars.
         KYC updation purposes.             "With effect from January 1, 2022, no  with reference to its financial position
                                                                               as on Mar 31, 2020. Based on the ex-
         The RBI said it has been receiving  entity in the card transaction / pay-  amination of risk assessments and in-
         complaints/reports about customers  ment chain, other than the card issu-  spection reports, the RBI found the
         falling prey to frauds being perpe-  ers and / or card networks, shall store  non-compliance of certain directions
         trated in the name of KYC updation.  the actual card data," the central fi-  of the norms.
         The RBI asked the public not to share  nancial institution stated in a state-
         key information like account details or  ment, including, "any such data  RBI makes 3 officials ex-
         passwords with unidentified persons  stored previously shall be purged".
         or agencies under threat of account                                   ecutive directors
         freeze.                                                               The Reserve Bank of India (RBI) has
                                            In terms of the new guidelines for
         Many customers have avoided visiting  payment gateways and payment    promoted three new officials to the
         branches during the pandemic, which  aggregators, online merchants will  post of executive directors (EDs), the
         has provided fraudsters an opportu-  not be able to store credit card data,  central bank said in an internal
         nity to use KYC as a reason to engage  forcing customers to enter their 16-  circular.
         with customers.                    digit numbers manually.            According to this circular issued by

         The RBI also said that it has made the                                RBI's human resources department,
         process of KYC updation much simpler.  RBI imposes Rs. 27.5L pen-     Ajay Kumar, A.K. Choudhary  and
                                                                               Deepak Kumar are the three officers
                                            alty on Dhanlaxmi Bank             in Grade F who have been promoted
         RBI scraps one click pur-
                                            The Reserve Bank of India today im-  as executive directors for the year
         chases from Jan 1                  posed a penalty of 2.75 mln rupees on  2021-22. Mint has reviewed a copy of
         The Reserve Bank of India (RBI) made  Dhanlaxmi Bank for breaching norms  the circular.

            8 | 2021 | OCTOBER                                                             | BANKING FINANCE
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