RBI - IDfy Blog

New AML rules bring KYC to the digital age

Reading the new Prevention of Money Laundering Act (PMLA) of August 20, can feel a bit like reading tea leaves. While we wait for clarifications and further announcements let’s take a look at what the future holds for us based on what we know so far.

RBI

Rs. 1.75 Crore Penalties for KYC Violations

The RBI is getting tough for any violations on those fronts. PNB, UCO Bank, Corporation Bank, and Allahabad Bank just the latest to be slapped with fines by the RBI to the tune of Rs 1.75 Crores. These are for non-compliance with KYC requirements and opening of current accounts.

HDFC Bank

HDFC Bank fined Rs 1 Crore for KYC violations

The industry is realizing that Digital KYC solutions that combine realtime checks, tampering detection, face recognition and face liveness technologies provide the same level of time and cost efficiencies as Aadhaar eKYC.

RBI

SEBI 'Innovation Sandbox' to Address 'Data Access' Issue

After the RBI, it is now the turn of SEBI and IRDAI to launch their own Regulatory Sandbox Frameworks for Fintech and Insurance companies. SEBI, thankfully, also addresses access to data as an important factor in its 'Innovation Sandbox'.

RBI

Access to data crucial element in Regulatory Sandbox: Wriju Ray to Economic Times

RBI's Regulatory Sandbox, in our opinion, is really about enabling AI in the KYC process. However, without access to data - a pre-requisite for any AI-based solution - the Sandbox could fall short of its promise.

Aadhaar

RBI Following Foreign Regulators; Fines Citibank, Bajaj Finance, Bank of Maharashtra

Complying with norms is getting real serious with global financial institutions being slapped with large fines by regulatory authorities in the first month of 2019.

Digital KYC

Four 'Must Haves' for RBI's Digital KYC Guidelines

Banks and Fintechs are looking for clear guidelines from the RBI for digital KYC. Here's a list of 4 must-haves for the RBI.

UIDAI

Why the UIDAI's QR Code-based Authentication Will Not Work

With Aadhaar-data unavailable to fintechs, banks, insurers, telcos and other private enterprises after the recent Supreme Court ruling, the UIDAI has hinted that QR Code and offline Aadhaar KYC may be considered. A circular from the UIDAI is supposed to have encouraged banks to

KYC

Fintech Companies Looking for Digital KYC Solutions

An Economic Times article on how fintechs are looking for digital KYC solutions that do not need Aadhaar data for authentication.

RBI

Data Localisation: Why the RBI isn’t Listening to Your ‘Mirroring’ Argument

OK, so the RBI wants data localization so they can seize / inspect records / data whenever they have to – that’s fine – but why don’t they at least allow data mirroring?!!

KYC

The Supreme Court’s Aadhaar Verdict and What it Means for Private Companies

Organizations that embrace technology and actually upgrade their authentication processes in these times will survive and prosper in the long run. Large parts of the onboarding processes can be automated while catching more fraud than before.

KYC

The Great KYC Challenge

RBI needs to embrace technology that makes e-KYC safer and more secure while giving a boost to an emerging sector that can impact millions of people by giving them access to finance at the click of a button.

KYC

Aadhaar eKYC Authentications by RBI Regulated Entities

It's imperative for the RBI and UIDAI to frame policy and back it with technology to help businesses implement presence-less KYC and onboarding. While businesses should ensure that regulators don’t find reasons to stop them from making use of such a facility.