Breaking

Showing posts with label KY Principles. Show all posts
Showing posts with label KY Principles. Show all posts

Thursday, 5 April 2018

11:54

Jio Announced Launching Jio Payment Bank on March 14th 2018

Jio Announced Launching Jio Payment Bank on March 14th 2018 

Jio Payments Bank App – Jio Launching JIO Payments Bank. So users can Create or Open Savings Accounts with eKyc Verification Online and Can Transfer Money from Jio Money app to Jio Payments bank accounts. Users also Get Jio Bank Debit/ ATM Card to get cash from ATM’s. Scroll Down to get More detailed data about Jio Bank. Stay tuned for Launch Date, Interest rates.

Jio Payments Bank App – Open/ Create Savings Account, eKyc Verification, Money Transfer
Hi Friends, Have you heard the Latest News From Jio?. Ok Fine. Jio Announced that Launching Jio Payments Bank From March 14th 2018. JIO Money Wallet will shut down and those Money will be transferred to Payments bank Account. why because Under RBI Guidelines, For Every Money wallet should verify users KYC Documents. For those Purpose jio Closes their JIO Money Wallet Services and Opening JIO Payments Bank Accounts like Paytm Bank Account, Airtel Payments bank, Aditya birla’s NSDL Payments bank & Fino Accounts.

 Jio Payments Bank Limited has commenced operations as a payments bank with effect from April 3, 2018. The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of payments bank in India.
Reliance Industries Limited, Mumbai was one of the 11 applicants which were issued in-principle approval for setting up a payments bank, as announced in the press release on August 19, 2015.

0
By at No comments:
Labels: , , ,

Saturday, 15 April 2017

09:19

Your Bank, other financial accounts may be blocked if you don't link them with Aadhar by 30th April.

Your Bank, other financial accounts may be blocked if you don't link them with Aadhar by 30th April.

Accounts opened from July 2014 to August, 2015 will have to submit know your customer (KYC) details and their Aadhaar number to banks and financial institutions by April 30 and self-certify them to comply with FATCA regulations (Foreign Tax Compliance Act), the tax department said on Tuesday. 

In case the account holders are unable to furnish details and provide self-certification by the new deadline, banks and financial institutions have the option of blocking the accounts. 
Once the details are furnished they can operate the accounts. The provision applies to accounts which come under the ambit of FATCA regulations. 
Banks and financial institutions were asked to obtain self-certification and carry out due diligence for all individual and entity accounts opened from July 1, 2014 to August 31, 2015 to comply with the Foreign Account Tax Compliance Act (FATCA) pact signed by India and the United States. 
In July 2015, India and the US signed a tax information sharing agreement under a new US law, FATCA, aimed at bolstering efforts for automatic exchange of financial information between the two nations about tax evaders. 
"The account holders may be informed that, in case self-certifications are not provided till April 30, 2017, the accounts would be blocked, which would mean that the financial institution would prohibit the account holder from effecting any transaction with respect to such accounts," the tax department said in a statement. 
Tax officials said that the accounts would include banks, insurance, stocks. Account holders will also have to mention their Aadhaar numbers.
Source:-FNPO
0
By at No comments:
Labels: , ,

Monday, 13 March 2017

08:45

Submission of old currency notes of Rs. 500 and Rs. 1000 :-Grace Period

Submission of old currency notes of Rs. 500 and Rs. 1000 :-Grace Period

Submission of old currency notes of Rs. 500 and Rs. 1000; The grace period for Indian citizen residing in India is March 31, 2017 and for Indian citizen resident outside is June 30, 2017 

The Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 was promulgated by the President of India (GoI Ordinance No. 10 of 2016 dated December 30, 2016) and it came into effect from December 31, 2016. Subsequently, the Specified Bank Notes (Cessation of Liabilities) Act, 2017 was notified on 28th February, 2017. 

A grace period has been provided during which the Specified Bank Notes can be deposited in accordance with this Ordinance/Act by Indian citizens who make a declaration that they were outside India between November 9 and December 30, 2016, subject to conditions that may be specified by notification by the Central Government. The grace period for Indian citizen residing in India is March 31, 2017 and for Indian citizen resident outside is June 30, 2017 as per Government of India notification no. 10 dated December 30, 2016. While there is no monetary limit for exchange for the eligible Resident Indians, the limit for NRIs is as per the relevant FEMA Regulations. 

The Reserve Bank, if satisfied after making the necessary verifications, that the reasons for failure to deposit the notes till December 30, 2016 are genuine, will credit the value of notes in the KYC (Know Your Customer) compliant bank account of the tenderer. This facility is available only at five selected RBI Offices (Mumbai, New Delhi, Chennai, Kolkata, and Nagpur). 

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today. 

Source:PIBNEWS

0
By at No comments:
Labels: , , ,

Tuesday, 28 February 2017

07:39

Sovereign Gold Bond Scheme 2016 -17 - Series IV - Issue Price

Sovereign Gold Bond Scheme 2016 -17 - Series IV - Issue Price
Date : Feb 23, 2017

Sovereign Gold Bond Scheme 2016 -17 - Series IV - Issue Price
In terms of Government of India notification F. No. 4(16)-W&M/2016 and RBI circular IDMD.CDD.No.2187/14.04.050/2016-17 dated February 23, 2017, the Sovereign Gold Bond Scheme 2016-17, Series IV will be opened for subscription for the period from February 27, 2017 to March 03, 2017. The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the week preceding the subscription period, i.e. February 20-23, 2017 (February 24, 2017, being holiday on account of Maha Shivratri), works out to ₹ 2943/- per gram. Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of ₹ 50 per gram on the nominal value of the Sovereign Gold Bond. Hence, the issue price of Gold Bond for this tranche has been fixed at ₹ 2893 /- (Rupees Two Thousand Eight Hundred Ninety Three only) per gram of gold.

Ajit Prasad

Assistant Adviser
Press Release : 2016-2017/2283

 Source:RBI

Date : Feb 23, 2017
Sovereign Gold Bond Scheme 2016 -17 – Series IV
The Reserve Bank of India, in consultation with Government of India, has decided to issue Sovereign Gold Bonds 2016-17 - Series IV. Applications for the bond will be accepted from February 27, 2017 to March 3, 2017. The Bonds will be issued on March 17, 2017. The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated Post Offices, and recognised Stock Exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange. The features of the Bond are given below:
Sl. No.
Item
Details
1
Product name
Sovereign Gold Bond 2016-17 – Series IV
2
Issuance
To be issued by Reserve Bank India on behalf of the Government of India.
3
Eligibility
The Bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions.
4
Denomination
The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
5
Tenor
The tenor of the Bond will be for a period of 8 years with exit option from 5th year to be exercised on the interest payment dates.
6
Minimum size
Minimum permissible investment will be 1 gram of gold.
7
Maximum limit
The maximum amount subscribed by an entity will not be more than 500 grams per person per fiscal year (April-March). A self-declaration to this effect will be obtained.
8
Joint holder
In case of joint holding, the investment limit of 500 grams will be applied to the first applicant only.
9
Issue price
Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited for the week (Monday to Friday) preceding the subscription period. The issue price of the Gold bonds will be ₹ 50 per gram less than the nominal value.
10
Payment option
Payment for the Bonds will be through cash payment (upto a maximum of ₹ 20,000) or demand draft or cheque or electronic banking.
11
Issuance form
The Gold bonds will be issued as Government of India Stocks under GS Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into demat form.
12
Redemption price
The redemption price will be in Indian Rupees based on previous week’s (Monday-Friday) simple average of closing price of gold of 999 purity published by IBJA.
13
Sales channel
Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated Post Offices (as may be notified) and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange, either directly or through agents.
14
Interest rate
The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
15
Collateral
Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.
16
KYC documentation
Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required.
17
Tax treatment
The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
18
Tradability
Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.
19
SLR eligibility
The Bonds will be eligible for Statutory Liquidity Ratio purpose.
20
Commission
Commission for distribution of the bond shall be paid at the rate of 1% of the total subscription received by the receiving offices and receiving offices shall share at least 50% of the commission so received with the agents or sub agents for the business procured through them.
Ajit Prasad
Assistant Adviser
Press Release : 2016-2017/2274


Source:RBI

0
By at No comments:
Labels: , , , , ,

Wednesday, 8 February 2017

08:06

Threats to Bitcoin users from cyberattacks and illegal activities -RBI

Threats to Bitcoin users from cyberattacks and illegal activities -RBI

Post RBI caution, startups form a chain around blockchain tech

Bitcoin players such as Zebpay, Unocoin, Coinsecure and Searchtrade have formed the Blockchain and Virtual currency Association of India and are in the process of formally registering it.
A circular by the Reserve Bank of India last week, cautioning users about virtual currencies such as Bitcoin, may have led to an alarm among Bitcoin investors in the country , but for startups in this space, it has served as the right push for creating an industry association.
Bitcoin players such as Zebpay, Unocoin, Coinsecure and Searchtrade have formed the Blockchain and Virtual currency Association of India and are in the process of formally registering it. In fact, in their first meeting in Mumbai on Friday, the members discussed the RBI circular among other things. "While we have been planning to create an association for some time, we finally pushed things after the circular,“ said Saurabh Agarwal, cofounder of Bitcoin trading and wallet company Zebpay .
"We had thought of reviving the old association -Bitcoin Alliance of India (formed in 2014 but now defunct), but we also decided to add blockchain companies and create a larger association," he said. Currently , there are four member companies, but the association looks to add more from the 20 odd Bitcoin star tups in the country. Mohit Kalra, CEO of Coinsecure, said that the first attempt at a Bitcoin association had failed since the companies were still small.
The main objective of the new association is to create an industry body to engage with regulators, but the association will also focus on making Bitcoin trading safe by ensuring members follow strong KYC measures and by creating awareness among users about Ponzi schemes and other risks.
"The goal is to have a uniform self-regulation amongst ourselves," said Sathvik Vishwanath, cofounder of Blume Ventures-backed startup Unocoin. Bitcoin is currently not regulated in India, and as per the RBI's notice on February 1, in which it reissued a circular from 2013, the regulator "has not given any licenceauthorisation to any entitycompany to operate such schemes or deal with Bitcoin or any virtual currency." The RBI said that the creation, trading or usage of virtual currencies such as Bitcoins as a medium of payment are not authorised by any central bank or monetary authority .It also warned of threats to Bitcoin users from cyberattacks and illegal activities.
The warning comes even as Bitcoin's popularity in India seems to be on the rise, especially after its value rallied post events such as Brexit, demonetisation and Donald Trump's victory . It was also considered the best-performing currency globally last year.

 Source:Banking Updates
0
By at No comments:
Labels: , , ,

Thursday, 22 December 2016

06:42

Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016

Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016

1. What is Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016
Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 is a scheme notified by the Government of India on December 16, 2016 which is applicable to every declarant under the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.
2. Who is eligible to deposit in PMGKS?
The deposit under this Scheme shall be made by any person who declared undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.
3. In what form will the deposits under this scheme be held?
The Deposits shall be held at the credit of the declarant in Bond Ledger Accounts (BLA) maintained with Reserve Bank of India.
4. Who are the authorized agencies where the application and amount of deposit will be accepted?
Application and amount for the deposit (in the form of Bond Ledger Account) shall be received by any banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (Authorized Banks).
5. Where can declarants get the application form?
Application for the deposit will be available at branches of authorized banks. It is also available in the Reserve Bank of India website.
6. When can a declarant make the deposit into the scheme?
The deposits under this Scheme shall be made in a single payment in any of the authorized banks from the 17th day of December, 2016 till 31st day of March, 2017
7. What are the Know-Your-Customer (KYC) norms?
Permanent Account Number (PAN) is the KYC document for individuals depositing in the scheme. If a declarant does not hold PAN, he shall apply for PAN and provide the details of such PAN application along with acknowledgement number to the bank while making the application. On receipt of PAN, the details may be updated with the bank from which application was made.
8. What is the minimum and maximum limit for depositing in the scheme?
The deposit by a declarant shall not be less than twenty-five per cent of the undisclosed income declared under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016. Deposit shall be made in multiples of ₹ 100.
9. Will any interest be paid on the deposit under the scheme?
No interest shall be paid for deposits made in this scheme.
10. After making the deposit, will any documentary evidence be issued?
On deposit, an acknowledgement receipt mentioning name of declarant and amount deposited will be duly authorized and provided by the bank from which application was made. Subsequently a certificate of holding for the BLA will be issued which may be collected from the authorized bank.
11. When will the deposit be repaid ?
Repayment of the deposit will be made after a period of 4 years from the effective date of deposit (ie., date of tender of cash or the date of realization of draft or cheque or transfer through electronic transfer)
12. What will the declarant get on redemption?
On redemption, the entire amount deposited into the scheme will be repaid.
13. How will the declarant get the redemption amount?
The redemption amount will be credited to the bank account furnished by the person in the application form.
14. What are the procedures involved during redemption?
On the date of maturity, the proceeds will be credited to the bank account as per the details on record.
In case there are changes in any details, such as, account number, IFSC code, email ids etc then the investor must intimate Reserve Bank Of India , through the authorized banks promptly.
15. Can the deposit made into this scheme be prematurely redeemed ?
No, option for premature redemption of the BLA is not available.
16. Can the BLA be gifted/transferred to a relative or friend on some occasion?
No, the BLAs cannot be gifted/transferred to any relative or friend. Transferability of the Bond Ledger Account shall be limited to nominee or to the legal heir of an individual holder, only in the event of death of the declarant.
17. Who will provide other services to the declarants after deposit in the scheme?
The banks through which the deposit into this scheme was made will provide other customer services such as change of bank account details, cancellation of nominee etc.
18. What are the payment options for depositing in PMGKS?
The deposit shall be made in the form of cash or draft or cheque drawn in favour of the authorised bank accepting such deposit or by electronic transfer.
19. Whether nomination facility is available for these investments?
Yes, nomination facility is available as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007. A nomination form is available along with Application form. In case of cancellation/change in nomination, a separate form is to be filled and submitted to the authorized bank.
20. Are the BLAs tradable?
No, the Bonds ledger Account are not tradable.
21. To whom the queries regarding PMGKDS be sent?
Queries about the scheme shall be forwarded to the e-mail.

Source:RBI

0
By at No comments:
Labels: , , ,
06:39

MODIFICATION :DEPOSIT OF SPECIFIED BANK NOTES IN TO BANK ACCOUNTS

MODIFICATION :DEPOSIT OF SPECIFIED BANK NOTES IN TO BANK ACCOUNTS

Withdrawal of Legal Tender Character of existing INR.500/- and INR.1000/- Bank Notes (Specified Bank Notes) - Deposit of Specified Bank Notes (SBNs) into bank accounts- Modification

RBI/2016-17/191
DCM (Plg) No. 1911/10.27.00/2016-17
December 21, 2016

The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural
Banks / Urban Cooperative Banks/ State Cooperative Banks

Dear Sir,
Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes (Specified Bank Notes) - Deposit of Specified Bank Notes (SBNs) into bank accounts- Modification
Please refer to our circular DCM (Plg) No. 1859/10.27.00/2016-17 dated December 19, 2016. On a review of the above, we advise that the provisions of the above circular at sub para (i) and (ii) will not apply to fully KYC compliant accounts.
2. Please acknowledge receipt.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Source:RBI 

0
By at No comments:
Labels: , ,

Friday, 18 November 2016

12:38

In the aftermath of the cancellation of the legal tender character of the old Rs. 500 and Rs. 1000 notes -..certain operational aspects of this scheme have been taken:

In the aftermath of the cancellation of the legal tender character of the old Rs. 500 and Rs. 1000 notes -..certain operational aspects of this scheme have been taken:

New Delhi, November 17, 2016
Kartika 26, 1938
In the aftermath of the cancellation of the legal tender character of the old Rs. 500 and Rs. 1000 notes, the Government of India has been receiving several suggestions including thosefrom the State Governments. The Government has considered various suggestions and the following decisions relating to certain operational aspects of this scheme have been taken:
i. We are now at the beginning of the Rabi season. The farmers need various inputs for their agricultural activities. While the Government is keen on promoting payment through the banking or digital system, it is felt necessary to make some quantum of cash available with farmers to meet various expenses in connection with agricultural operations. It has, therefore, been decided that farmers would be permitted to draw upto Rs. 25000/- per week in cash from their KYC compliant accounts only. These cash withdrawals would be subject to the normal loan limits and conditions. This facility will also apply to the Kisan Credit Cards (KCC).
ii. Farmers are currently selling their produce from the Kharif season in the APMC markets/mandis. The farmers who receive such payments in their bank accounts through
cheque/ RTGS will be permitted to draw up to Rs. 25000/- per week in cash. These accounts will have to be KYC compliant. This facility will enable the farmers to meet
their various expenses connected with agriculture. This will also infuse lot of liquidity into the rural sector.
iii. Traders registered with APMC markets/mandis will be permitted to draw up to Rs. 50,000/- per week in cash from their KYC compliant accounts as in the case of business entities. This will enable these traders to pay wages and facilitate easy loading, unloading and other activities at the mandis.
iv. For payment of crop insurance premium, States fix time limits depending on their local requirements and conditions. Consequently, the last date for payment expires on different dates. It has now been decided to extend the last date for payment of crop insurance premium by 15 days. 
v. While encouraging families to incur wedding expenses through cheques or digital means, it has been decided to permit families celebrating weddings to draw up to Rs. 2,50,000/- in cash from their own bank accounts. These accounts have to be necessarily KYC compliant. The amounts can be drawn only by either of the parents or the person getting married. Only one of them will be permitted to draw this amount. This limit of Rs.  2,50,000/- will apply separately to the girl’s family and the boy’s family. The person drawing such amount has to furnish the PAN details. Further, a self-declaration will have
to be submitted by the person to the effect that only one person from his/her family is drawing the amount. It is expected that members of the public will fully cooperate to
ensure that the above guidelines are adhered to. Any misuse of this facility will invite appropriate action based on the self-declaration and other details.
vi. At present, over the counter exchange of old Rs. 500/- and Rs. 1000/- notes is limited up to maximum of Rs. 4500/- per person. Reports have been received that the same persons are going back to the counter again and again, thereby cornering the facility and depriving many other people from exchanging old notes. There are also reports oforganized groups indulging in such practices to convert their black money into white. It is now expected and desirable that people put their old notes into their bank accounts.However, for convenience of the people who may be on temporary visit either for work or otherwise, it has been decided to reduce this limit of exchange of old Rs. 500/- and Rs.1000/- notes across the counter in banks from Rs. 4500/- to Rs. 2000/-. This facility will be available only once per person. The reduced limit of Rs. 2000/- will take effect from18th November, 2016.
vii. Central Government employees up to Group `C’ including equivalent levels in the Defence and Para Military Forces, Railways and Central Public Sector Enterprises will be
given an option to draw salary advance up to Rs. 10,000/- in cash. This amount will be adjusted in their salary for November, 2016. It is expected that this decision will ease the
pressure on the banks. 

Source:Finmin

0
By at No comments:
Labels: , , , , ,

Saturday, 29 October 2016

18:13

ICICI bank launches Money2India Europe scheme

ICICI bank launches Money2India Europe scheme

The British branch of ICICI Bank, ICICI Bank UK Plc. today announced the launch of online money transfer services to facilitate transaction from any bank accounts in Sweden, Norway and Denmark to any recipient account based in India. The service called ‘Money2India Europe’ verifies the credentials of the customers over video call from Money2India Europe website. The website is owned by ICICI Bank UK Plc. “Using this service, anyone residing in these countries can initiate money transfer round-the-clock for 365 days from their local bank account to any bank account in India in a quick and convenient manner,” ICICI Bank’s spokesperson said. “Money2India Europe service is now available in twenty countries in Europe”, he added. The service is completely online and can be completed within fifteen minutes.

It eliminates the need to courier the Know Your Customer (KYC) documents. ICICI Bank UK Plc. has partnered with Inpay A/S, a global payments service provider, to bring this service to consumers in Sweden, Norway and Denmark. “With NRIs being away from the country, digital channel becomes a very powerful tool for them to connect with India. With the expansion of Money2India Europe, we intend to comprehensively fulfill the money transfer needs of the NRI diaspora in Sweden, Norway and Denmark,” Vijay Chandok, Executive Director, ICICI Bank said.

Jacob Tackmann Thomsen, CEO and founder of Inpay A/S said, “Sweden, Denmark, and Norway are three of the most innovative markets in Europe, where digital payment innovation is ahead of the global developments. At Inpay we are very pleased to support one of the leading global banking brands and its proprietary remittance platform by providing bank account collections.” Euro (EUR), Swedish Krona (SEK), Norwegian Krone (NOK) and Danish Krone (DKK) are the currencies allowed for money transfer service by the Bank. Registered users can also track the status of their online transfers. It takes one working day for ICICI bank customers in Europe to transfer their money to any ICICI bank account in India and two working days to transfer their money in Europe to any other bank account in India.  

Connectivity is one of the key requirements of the modern world. There are many Indians living and working abroad, who need to transfer money to their family’s bank accounts in India. Money2India Europe provides a fast, easy and accurate platform to do so. This site is relatively popular among users in the Germany.

It gets 49.2% of its traffic from Germany. This site is estimated to be worth €11927 and is ranked ahead of its competitors like Moneytransfer.ie, Exchange4free.com, Sendingmoneytoindia.com and Westernunionmoneytransfer.com. It is a promising and a highly useful venture by ICICI bank’s UK branch, launched in a continent where online money transfer technologies are ahead of global advancements. 

Source:IndianCEO
0
By at No comments:
Labels: , , , ,

Thursday, 13 October 2016

22:40

Decoding The Alphabet Soup Of Compliance

Decoding The Alphabet Soup Of Compliance

Regulation and compliance can be a tough space for many to wrap their heads around.

As technology advances, the threat to digital security and identity protection becomes greater, forcing regulations to quickly adapt.
But in a space that’s constantly changing, how can anyone really keep up?
It starts by knowing the basics and breaking down many of the common terms and acronyms being thrown around today.
Sunil Madhu, founder and CEO of Socure, joined Karen Webster to give context to some of the compliance concepts trending in the industry and also share his thoughts on what’s coming next down the regulatory pipeline.

Compliance Decoded
Know Your Customer (KYC), which is also referred to formally as Customer Identification Program (CIP), is the process by which identities are verified as being legitimate or not. Madhu explained that there are two segments of KYC — customer due diligence and enhanced due diligence.

Customer due diligence covers the steps a business must take to identify and verify a consumer that is interacting with them digitally. What they have to do in those circumstances — the processes and procedures put in place — varies based on the specific flow and how high-risk that customer may be.

In the KYC/CIP space, one of the latest trends Madhu identified is robo-compliance — the application of machine learning and real-time analysis of online social and offline data together.

“The funny thing is that the use of online social data in the world of compliance has been kind of a dirty little secret,” Madhu said.
He noted that regulators and compliance officers are often finding that using traditional methods alone to identify and accept good customers isn’t working, which is why many turn to online social data behind the scenes.
By using social networks, like Facebook, LinkedIn or even just looking up someone’s name on Google, they are able to leverage socially based data to verify a person is who they say they are.
The compliance space is now at the forefront of recognizing the use of online social data as an adjunct to using credit data as a mechanism for verifying people at scale, for both financial inclusion and for compliance, Madhu explained.
By using online social data, regulators are also able to cover and identify a newer demographic of consumers who are typically left off the traditional credit data mechanism. 
Why Compliance Is Going Social
In a world where data breaches have made it easier than ever for cybercriminals to access all the data they need to hack the identity of an individual, Madhu said social biometrics is the predominant way to flush out the bad guys from the good guys.
The Socure identity verification platform utilizes social biometrics — a person’s digital footprint — to validate digital identity. Alongside social, data is aggregated and correlated across email, phone, address, IP and other offline data to build a complete identity picture. This approach makes it easier to spot when the data that makes up an identity has been stolen and repurposed, such as changing an email address or a phone number to make it easier for the attacker to take over an existing account or establish a new one.
“The alterations on the identity is something that you can validate very easily in this way, because, if you look at the online presence associated to those real attributes versus the modified attributes, there’s a stark difference,” Madhu pointed out.
Synthetic or altered identities tend to lack the depth and online/social proof that legitimate identities naturally have.
But Madhu said both regulators and the industry itself are catching onto the power digital identity has in compliance.
“The market is really adapting to realize that, in order to solve for the problem of coverage and the problem of easily available stolen data, that they have to look beyond just the [credit] bureaus,” he noted.
The data that’s used by the credit bureaus to verify identities can easily be manipulated and compromised, whereas it is much more difficult to spoof a person’s entire social network, digital identity history and online interactions.
The Human Element
Though compliance is shifting towards very digitally powered tools and solutions, such as artificial intelligence, there’s still a need for people in many processes.
Madhu used anti-money laundering (AML) as an example of compliance that is very process-driven and manually intensive. In some cases, it can take several months of ongoing procedures to determine if a transaction represents a money laundering event or not.
“I don’t ever see human workers being displaced at scale in compliance,” he said.
When it comes to tools like robo-compliance, the goal isn’t to remove all human elements but to instead turn a manual, paperwork-driven approach to something that is real-time-driven by machine learning. This enables data to be processed at a scale at which a human worker would not be able to attain.
Madhu explained that robo-compliance is a tool that actually enables people to do their jobs more effectively by assimilating data and looking for patterns of use across different types of data in real time.
Rewriting Regulation
If Madhu could issue the regulation and compliance guidelines himself, he said that the use of trusted online and offline data in combination would be standard. By using both types of data together to verify identities, businesses can ensure that they are addressing customer due diligence and enhanced due diligence, he explained.
In the future, it’s possible that blockchain will also play a role in being able to verify true digital identities.
According to Madhu, blockchain could end up becoming a platform for identity verification because all of a person’s transaction history can be used as a proxy for their identity.
“You are how you spend your money, or you are what you buy,” he pointed out.
As innovators continues to pull apart the technology to find out how it can be implemented in closed-loop blockchains, the potential is there for it to be utilized for much more than just cryptocurrency.
As the blockchain advances, it’s being put to the test for data, like transactions, procedures and even adding layers of business logic.
“The blockchain itself is evolving into a more mature form of a distributed database,” Madhu said. This will make understanding a consumer by their transaction history realistic, if and when that technology becomes more prevalent.

Source:PYMNTS.com
0
By at No comments:
Labels: ,

Sunday, 21 August 2016

08:50

Payment Banks may pay a heavy price for KYC norms

Payment Banks may pay a heavy price for KYC norms

Firms fear paper-based ID verification will be a cost-intensive and time-consuming exercise

Just a few months before the new crop of payment banks start their operations, their chiefs are a worried lot.

The banking regulator's ask in terms of meeting the Know Your Customer (KYC) norms has put them at par with traditional banks, and firms are concerned that the preference for "paper-based" KYC will be a cost-intensive and time-consuming exercise -and therefore a major impediment to the growth of the new age banks.

Paytm payment bank's CEO Shinjini Kumar told ET that the industry is very "aggrieved" with the Reserve Bank of India (RBI) asking all entities to adhere to the centralised KYC system instead of just relying on the Aadhaar-based eKYC for payment banks.

"We are grappling with that problem right now and we are talking to different people. We are hoping that there will be some understanding. Anyway our accounts are capped at Rs 1,00,000. There should be no reason why eKYC should not be the only way to do KYC. It's also digital and more authentic." Chiefs of Aditya Birla Idea payments bank, Sudhakar Ramasubramanian and Vodafone M-pesa payments bank Suresh Sethi also aired similar concerns to ET.

They argue that payment banks don't have the same manpower to collect paper-based KYC like traditional banks and given that they are capped at a balance Rs 1,00,000, they don't share the same amount of risk.

While RBI had earlier accepted eKYC as a means for customer authentication at the time of opening accounts, the new norms mandate a common KYC across all financial services entities for which detailed KYC is required to be collected and uploaded as a paper form to a central KYC repository -Central Registry of Securitisation Asset Reconstruction and Security Interest of India, or CERSAI.

The idea is to streamline the KYC process and avoid duplication of KYC for customers at multiple agencies. But, for payment banks to be cast under the same net, it means that instead of just relying on the biometric based eKYC they will have to collect more details of their customers and upload them to the central registry.

Sudhakar who is the CEO (designate), of Aditya Birla Idea Payments Bank said that in the case of payment banks a phased approach towards KYC will be better received since the whole idea behind the payment banks is towards financial inclusion.

"If we have too many restrictions for someone who keeps Rs 5,000 in the account, it could prevent many of the unbanked from experiencing the benefits of financial services. KYC norms can be applied in a layered manner as the customer's balance and transactions increase," he said. Digital KYC will help ease the "entry barrier" for such people along with being a more authentic means of KYC than a physical KYC.

"Currently , over 90% of all retail transactions are through cash in the country, if these transactions have to be converted into the electronic format, banking will have to be relived from some of these troubles," he added.

0
By at No comments:
Labels: , ,