Page 8 - BANKING FINANCE OCTOBER 2021
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RBI CORNER
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