RBI has tightened know-your-customer (KYC) norms for banks and has said separate guidelines, including norms on wealth management services, will soon be issued.
?During the investigations it was observed banks are not carrying out customer due diligence as required under KYC/AML/CFT guidelines while marketing and distributing third party products as agents,? RBI said in a statement.
RBI had told banks to carry out customer due diligence as required under KYC, Anti-Money Laundering (AML) Standards and Combating Financing of Terrorism (CFT) guidelines, wherever third party products are sold. RBI also asked banks to maintain details of third party products sold and related records for a period in accordance with the guidelines.
RBI says guidelines on the norms will be issued by end-June. ?Measures on KYC and tightening of third party distribution are in the best long term interests of banks,? said Chanda Kochhar, MD & CEO, ICICI Bank.
