Vide Circular No DBOD.AML.BC. No. 65/14.01.001/ 2012-13 dated December 10, 2012 Rexerve Bank of India, had laid down procedures for simplification of Know Your Customer (KYC) norms / Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002.
In order to address the difficulties faced by Self Help Groups (SHGs) in complying with KYC norms while opening savings bank accounts and credit linking of their accounts, RBI has released simplified KYC norms for certain norms for SHGs.
The guidelines are as under: –
- Accordingly, KYC verification of all the members of SHG need not be done while opening the savings bank account of the SHG and KYC verification of all the office bearers would suffice.
- As regards KYC verification at the time of credit linking of SHGs, it is clarified that since KYC would have already been verified while opening the savings bank account and the account continues to be in operation and is to be used for credit linkage, no separate KYC verification of the members or office bearers is necessary.
In the near future, Banks will issue revised KYC policy keeping in view the above instructions.
Trust the SHG’s will inform in writing to Banks in case of any changes in their office bearers. Otherwise the very purpose of this circular will be negated.
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