How many OVDs are there as per RBI?
The letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number. Note: Customers, at their option, shall submit one of the six OVDs for proof of identity and proof of address.
What is KYC in banking in India?
KYC means “Know Your Customer”. It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks’ services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same. 2.
What is RPS banking?
RPS Retail Payment System The Retail Payment System ( RPS ) is a payment transaction platform operated by the Deutsche Bundesbank for the cost-effective settlement of non-urgent payments. The RPS complements the payment transaction platforms of private-sector financial networks.
What is vostro?
Vostro is a reference to “yours” and refers to “your money that is on deposit at our bank.” A vostro account is like any other account held by a bank. The account is a record of money owed to or maintained by a third party, typically another bank, but it can be either a company or an individual.
Is re KYC mandatory?
As per RBI guidelines on KYC norms, Banks need to periodically update customer identification documents in the records of their account holders. In addition to the KYC carried out at the time of account opening, the account holders may be required to undergo re-KYC and submit the requisite documents.
Is PAN card mandatory for KYC?
The PAN is proof of your identity as well as income. It also proves that you are a tax-paying citizen of the country. A PAN Card is, therefore, a mandatory document at the time of getting your KYC process done.
What is RPs cash?
RPs are agreements on the part of banks to sell Treasury or Federal agency securities to their customers, coupled”with an agreement to buy them back later (hence the term re- purchase agreement) at a price which includes accumulated interest.
Why is Rekyc needed?
Why is KYC important? By law, KYC is required for financial institutions to establish the legitimacy of a customer’s identity and identify risk factors. KYC procedures help prevent identity theft, money laundering, financial fraud, terrorism financing, and other financial crimes.
What is the period of re KYC?
Time intervals for periodic updation of KYC is 2, 8 and 10 years for existing high, medium and low risk customers respectively.
What is the Reserve Bank of India?
The Reserve Bank of India is the country’s central bank. It was established in 1935 in accordance with the Reserve Bank of India Act, 1934. The RBI oversees banking in India and performs the following key functions:
What is the existing banking structure in India?
The existing banking structure in India, evolved over several decades, is elaborate and has been serving the credit and banking services needs of the economy. There are multiple layers in today’s banking structure to cater to the specific and varied requirements of different customers and borrowers.
How resilient are Indian banks?
Credit, market and liquidity risk studies suggest that Indian banks are generally resilient and have withstood the global downturn well. Indian banking industry has recently witnessed the roll out of innovative banking models like payments and small finance banks.
What is the role of RBI in banking sector?
Given their importance in the economy, banks are kept under strict regulation in most of the countries. In India, the Reserve Bank of India (RBI) is the apex banking institution that regulates the monetary policy in the country.