Banks to bring in extra KYC verification layers

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Key Points

Banks are working on updates to strengthen their KYC (Know Your Customer) standards by adding extra verification layers to identify accounts and account holders..

Under the plan being discussed with the Reserve Bank of India and the government, lenders would update all existing accounts, especially those with a single phone number linked to multiple or joint accounts..

Banks would also seek more verification from individuals having multiple accounts opened with different documents...

"In the last year, we, through the Indian Banks' Association, or IBA, shared our concern with the RBI on slackened KYC norms by fintech companies," said another banker, adding that they represented that some of these firms do not report to credit bureaus, which increases the risk for other lenders who rely on data available through credit bureaus..

Full story at Economic Times | 

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