Guest post by
Harshil Dave, Senior Associate Consultant, Infosys
Close to 22 Indian banks were fined a total of Rs. 49.5 Cr. by the banking regulation authority Reserve Bank of India (RBI). These banks were found in violation of Know Your Customer (KYC) norms laid by RBI. The KYC norms that were violated were the ones aimed at preventing money laundering activities. KYC has 2 components Identity and Address, while Identity remains a constant, the address of customer might change over a period and hence banks are required to periodically update their records. Under KYC norms, all customers of the bank are expected to submit the PAN card details, address proof details and proof of identity issued by a government authority such as Passport authority etc. From recent events it seems to appear that these KYC norms have not been implemented and followed by several banks.