Will tweak KYC norms, if need be: RBI

  • HT Correspondent, Hindustan Times, Mumbai
  • |
  • Updated: Apr 23, 2013 09:04 IST

The Reserve Bank of India (RBI) may introduce some corrective measures in the Know Your Customer (KYC) norms as and when necessary to check any transaction level aberrations in the functioning of banks.

"(Banking) system is good, there is no problem. There are... (at the) transactional level, some aberration will always take place and there is a need to look into those issues and as and when it is necessary, banks will take the corrective measures. And if necessary, from the Reserve Bank, regulator side, we will issue the corrective measures," said KC Chakrabarty, deputy governor, RBI speaking on the sidelines of an event organised by Yes Bank.

Chakrabarty was asked whether the banking regulator is contemplating a change in the KYC norms in the wake of news portal Cobrapost in a sting operation allegedly showing readiness by some officials of ICICI Bank, HDFC Bank and Axis Bank to put unaccounted money into investment products.

The deputy governor reiterated that there is no money laundering involved as no transaction has taken place. "In none of their branches there was a case of money laundering... No transaction has taken place," he said.

When asked if fines would be imposed on the errant lenders, Chakrabarty did not rule out such a possibility if needed. He declined to divulge details of the RBI report on the lenders citing confidentiality.

"Any RBI supervisory investigation is an issue between the supervisor and the supervised entity. That's not for public discussion," he said.

 

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