The World Opinion

Tag: KYC

  • RBI Tightens Rules For Domestic Money Transfers | Personal Finance News

    New Delhi: The Reserve Bank of India (RBI) has tightened the framework for domestic money transfers in order to keep track of both cash pay-in and pay-out services.  In a circular issued on Wednesday, the RBI stated that in the case of cash pay-out service, the remitting bank shall obtain and keep a record of the name and address of the beneficiary.

    The circular also mentioned that in the case of cash pay-in service, the remitting banks or business correspondents shall register the remitter based on a verified cell phone number and a self-certified ‘Officially Valid Document (OVD)’ as per the Master Direction – Know Your Customer Direction 2016, as amended from time to time.

    Every transaction by a remitter will also have to be validated by an Additional Factor of Authentication (AFA). “Remitting banks and their business correspondents shall conform to provisions of the Income Tax Act, 1961 and the rules/ regulations framed thereunder (as amended from time to time), pertaining to cash deposits,” the circular states.

    The remitter bank shall include remitter details as part of the IMPS/NEFT transaction message, it added. The transaction message will have to include an identifier to identify the fund transfer as a cash-based remittance. The RBI also stated that the guidelines on card-to-card transfers are excluded from the purview of the DMT framework and shall be governed under the guidelines granted for such instruments.

    The RBI explained that since the framework for Domestic Money Transfer (DMT) was introduced in 2011, there has been significant increase in the availability of banking outlets, developments in payment systems for funds transfers, and ease in fulfilling KYC requirements, etc. Now, users have multiple digital options for fund transfer.

    The RBI said that the changes are being introduced following a review that was undertaken recently of various services facilitated in the current framework.

  • Electricity KYC Update Scam: 392 Mobile Phones Banned by Govt |

    New Delhi: Department of Telecommunications (DoT) has taken major action against Electricity KYC Update Scam, directing Pan India IMEI based blocking of 392 mobile handsets misused in cybercrime, financial frauds.

    “Department of Telecommunications (DoT) has initiated targeted actions to protect citizens in response to reports of fraudulent activities involving mobile numbers in electricity KYC update scams,” Ministry of Communications said in a release.

    Citizens reported some cases of fraudsters using SMS & WhatsApp messages related to electricity KYC updates and malicious APK files to manipulate and gain control over victims’ devices.

    The DoT utilized the Chakshu portal for reporting and analyzing fraudulent activities, initially identifying five suspect numbers. The portal’s AI-driven analysis revealed that 392 handsets linked to 31,740 mobile numbers were involved in such fraudulent activities.

    The DoT has directed all Telecom Service Providers (TSPs) for Pan India IMEI based blocking of 392 mobile handsets misused in cybercrime, financial frauds. It also directed them for re-verification of 31,740 mobile connections linked to these mobile handsets. Failure in re-verification will result in immediate disconnection of reported numbers and blocking of associated handsets.

    What is Chakshu Facility on Sanchar Saathi Portal

    Chakshu is the latest addition to the citizen centric facilities already available on the Sanchar Saathi portal (www.Sancharsaathi.gov.in) of DoT. ‘Chakshu’ facilitates citizens report suspected fraud communication received over call, SMS, or WhatsApp with the intention of defrauding like KYC expiry or update of bank account/payment wallet/SIM/gas,connection/electricity connection, sextortion, impersonation as government official/ relative for sending money, disconnection of all mobile numbers by the DoT, etc.

  • EPFO Introduces New Rules For Cheque Leaf And Bank Passbook Uploads: Here’s All You Need To Know | Personal Finance News

    New Delhi: The Employees Provident Fund Organization (EPFO) has announced a change in the requirements for uploading a validated bank passbook image or cheque leaf while filing certain claims online.

    How does EPFO verify claims?

    To verify claims EPFO uses verification methods instead of requiring a validated bank passbook or cheque leaf image. These methods include:

    – Online Bank KYC Verification: The EPFO checks your bank’s or the National Payments Corporation of India’s (NPCI) KYC details directly. (Also Read: RBI Moves 100 Tonnes Of Gold From UK Vaults For First Time Since 1991)

    – Employer Verification via DSC: Your employer can verify your bank account details using a Digital Signature Certificate (DSC). (Also Read: SEBI Bans THESE 5 Entities From Securities Markets For 3 Years: Check List)

    – Aadhaar Number Verification: The EPFO validates your bank account’s Aadhaar number with the UIDAI (Unique Identification Authority of India).

    This change will speed up the online claim settlement process and reduce the number of rejected claims due to missing images of attested bank passbooks or cheque leaves.

    As stated in the EPFO circular from May 28, 2024 “With a view to facilitate the speedy settlement of claims filed online and to reduce the rejection of claims due to the reason of non-uploading of the image of cheque leaf/ attested bank passbook while filing claims online, it has been decided with the approval of the CPFC to relax the requirement of mandatory uploading of the image of cheque leaf/ attested bank passbook for certain eligible cases based on certain validations which include Online Verification of the Bank KYC by concerned Bank/NPCI, Verification of Bank KYC by the employer using DSC, Seeded Aadhaar Number verified by UIDAI among others.”

    Has EPFO specified eligibility criteria?

    They might not have detailed the eligibility criteria. Here are some possible scenarios:

    Validated Bank Data: If your bank details have already been verified through KYC or another method you might not need to submit any additional documentation.

    Claim Amount: The relaxed requirements might apply to claims below a certain amount.

    For an EPF claim, the ideal supporting document is an original, cancelled check that clearly shows your name, bank account number and IFSC code. This document confirms your bank account details and ensured your claims are settled.

    How to Submit an Online EPF Claim

    You can file an online claim through the EPFO member site. Here’s a general guideline but you must always check the official EPFO website for the latest updates:

    Eligibility Requirements:

    – You must have a valid Universal Account Number (UAN) and be a registered member.

    – Your Aadhaar number, bank account number and other Know Your Customer (KYC) details need to be seeded and validated in your UAN account.

    Here’s how you can file an online claim with EPFO:

    – Visit the EPFO Member Portal: Go to https://unifiedportal-mem.epfindia.gov.in/ and log in using your UAN and password.

    – Navigate to the Claim Section: Once logged in, find the “Claim” section in the member portal.

    – Select Claim Type: Choose the type of claim you want to submit, such as pension or full settlement.

    – Verify KYC Information: Your KYC details should be pre-filled based on the data you submitted. Make sure these details are accurate, and update if necessary.

    – Online Verification: Instead of uploading documents, online verification methods may be used based on the circumstances and recent relaxations.

    – Upload Documents if Required: In some cases, you may still need to upload scanned copies of documents, such as a canceled check or an attested bank passbook copy. Refer to the EPFO website for the latest document requirements.

    – Submit the Claim: After verifying all information, submit your claim application.

    – Track Claim Progress: You can monitor the progress of your claim application through the portal.

  • RBI Imposes Rs 6 Lakh Penalty On The Mandi Cooperative Bank: Here’s Why | Companies News

    New Delhi: The Reserve Bank of India on Wednesday imposed a Rs 6 lakh fine on Himachal Pradesh’s The Mandi Cooperative Bank for breaching prudential inter-bank exposure limits in FY22.The Mandi-headquartered bank was found to be breaching certain limits, warranting the imposition of the monetary penalty, as per an official statement.

    The penalty is for non-compliance with provisions of RBI directions on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’, and as per provisions of the Banking Regulation Act, 1949, the central bank said. (Also Read: Discounts On Apple iPhone 15, 14, 13 Available On Flipkart: Check Current Prices)

    The central bank also imposed a penalty of Rs 1 lakh on West Bengal’s The Howrah District Central Co-operative Bank for failing to undertake a periodic update of KYC (know your customer) of customer accounts, and failing to put in place a system of risk categorisation of accounts. (Also Read: WhatsApp Android To Introduce Feature For High-Quality Media Sharing)

    The RBI has also imposed a fine of Rs 75,000 on The Rajapalayam Co-operative Urban Bank, Rajapalayam, Tamil Nadu, for extending loans to relatives of directors, and sanctioning loans to nominal members in excess of the prescribed ceiling in FY22.

    It has also imposed a penalty of Rs 1 lakh on Mumbai’s Excellent Co-operative Bank for not transferring the eligible amount to the Depositor Education and Awareness Fund within the due date in FY23, as per an official statement.

    The Standard Urban Co-operative Bank in Maharashtra’s Aurangabad was levied a fine of Rs 50,000 for not transferring the eligible amount to the Depositor Education and Awareness Fund within the due date in FY23, a statement said.