The Hindu Business Line : Know Your Customer norms apply to NBFCs

THE Reserve Bank of India has said that the guidelines it issued to banks on the `Know Your Customer' (KYC) are equally applicable to non-banking financial companies (NBFCs).

All NBFCs have been advised to adopt these norms with suitable modifications, depending on their activity. They should ensure that a proper policy framework on KYC and anti-money laundering measures is formulated and put in place with the approval of the board within three months.

NBFCs must ensure that they fully comply with these norms by December 31, 2005, the RBI has said. They must keep confidential all information collected from customers for the purpose of opening accounts and not divulge any details for cross-selling.

The NBFCs have been asked to ensure that the information sought from the customer is relevant to the perceived risk, is not intrusive, and in conformity with the guidelines.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee tad higher; bonds lacklustre

`IT tools must for Basel II compliance'

MDRT membership: Many qualify, but few register

Know Your Customer norms apply to NBFCs

ICICI Bank to float bonds for Rs 400 cr

Andhra Bank keen on more fee-based income

IndusInd Bank to launch debit card for women

AIBOC panel's study on consolidation, FDI policies to be ready soon