The Reserve Bank of India has relaxed rules for non bank entities that facilitate outward remittances. RBI prior approval is no longer required for their tie ups. Going forward, authorized dealer banks will handle compliance and customer verification, while customers should get clearer disclosures on forex rates, total costs, and expected credit timelines.
The RBI has imposed penalties on YES Bank and Hinduja Housing Finance, citing failures in implementing a system to use the KYC Identifier issued by the Central KYC Records Registry. The regulator said the banks did not put the required mechanism in place for establishing account-based customer relationships, triggering enforcement action over compliance lapses.
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