Business India

RBI Latest Guidelines after Money laundering boosts India

RBI Latest Guidelines after Money laundering boosts India

Reserve Bank of India (RBI) has taken a big step to curb money laundering. The change made on behalf of RBI will be effective from September 15. Under the new decision of the Reserve Bank, if a person issues a demand draft then the name of that person will also be on DD. In the current system, the demand draft is the name of the person whose account is going to the amount. After the RBI takes a new step, there is hope for more transparency in the system. The new arrangement implemented by the RBI will be applicable when the payment order is followed by bankers cheque. About this, Notification has been issued to all banks on behalf of Central Bank on Thursday.

According to this notification, on 15th September 2018, when the payment is made through demand draft, or bankers check–the name of the person should be mentioned on this, who issued this demand draft. This arrangement will be implemented after about 60 days, in such a situation if there is a change in the banking system, it can be done.

KYC Related Rule

The Reserve Bank has directed all commercial banks, regional rural banks, urban co-operative banks, state co-operative banks, district central co-operative banks, small finance banks and payment banks to implement this till the due date. The Reserve Bank has amended the Know Your Customer (KYC) norms also. The modification of the Master Directive of KYC has been changed in Section 66.

From April 2017 to March 1, 2018, total 5,152 cases of frauds have been reported in different banks of the country exceeding Rs 28,459 crore. Most of these are due to lack of fraud in demand draft like banking instruments. In such a way, this latest step can be quite effective for controlling fraud by the RBI. Strict measures are being taken to prevent corruption and banking fraud from the government side too.



About the author

Abhishek Lohia

Abhishek Lohia was a Sports and Political Writer working for Newsfolo and is no longer associated with the organization.

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