Alert - each of your bank transactions are being monitored
Posted on: 19/Jan/2016 3:45:27 PM
As a move to help bankers stay aware of unscrupulous bank transactions made by frauds, the Reserve Bank of India has aided the banks with special rules and norms with which they can know more about the account holders. This will make it possible to prevent illegal transactions, fraudulence with money handling, and suspicious activities, and monitor bulk transactions made.
It has made mandatory for the banks to receive Know Your Customer (KYC) form from all its new customers. This will aid the bank in knowing more details about their customers. What is the reason behind following such practices? Below are some of the most common reasons.
- Identify customers precisely
- Monitor suspicious activities and transactions
- Based on the details given by the customers, it is possible to legally verify identities of their customers
- This confirmation can be done through the copies of passport, driving license, etc provided by the customers
- When the customer doesn`t have the necessary documents, it is mandatory to have an introduction done by any existing customer of the bank. The verification is done by this means in such cases
Below are the details of supervision made on banking transactions
- Cash received of Rs 5000 and above through travelers cheque, demand draft, mail transfer, telegraphic transfer, etc can be received only as income in the account or as cheque
- For transactions above Rs 10,000, it is mandatory to provide the PAN number for receiving the cash
- As the customer details can be obtained from the KYC forms for transactions above Rs 50,000, it is mandatory to mention the PAN number for making such transactions
- As per RBI rules, savings above Rs 10 lakh or over draft transactions need to be monitored by the bankers. These need to be separately recorded
- Banks are ordered to send across a report of all suspicious transactions and withdrawal above Rs 10 lakh. This has to be sent to their main branch for once in two weeks. Charges will be applicable for depositing funds in your account at branches other than your home branch
