International Journal of Law


International Journal of Law
International Journal of Law
Vol. 4, Issue 2 (2018)

KYC norms in India: Issues and challenges


Deepa Kaushik

In today’s world, KYC guidelines are laid down to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities. RBI also simplified various KYC norms to minimized frauds and risks end protect banks reputation. RBI has also accepted e-KYC through aadhaar to reduce document risk and frauds and reduce cost. Banking Regulation Act was amended and gave powers to RBI to impose a penalty for single violation. Banks are often criticized for using know-your-customer (KYC) norms as an excuse to complicate the process of opening accounts. Many have registered complaints on Grahak Seva, the government’s customer-grievances portal, alleging banks repeatedly seek KYC documents, even after these are provided.
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