RBI Revises Norms for Politically-Exposed Persons

Recently, the Reserve Bank of India (RBI) updated Know Your Customer (KYC) norms for politically exposed persons (PEPs) who transact with regulated entities (REs), seeking to comply with the recommendations of the Financial Action Task Force (FATF).

Rationale

  • The earlier norms pertaining to PEPs were open-ended and there was a lack of clarity on the definition, apparently leading to issues for bankers, parliamentarians and others. There were also concerns in certain quarters that PEPs were finding it difficult to get loans or open bank accounts.
  • It is to be noted that the government has amended rules to incorporate more disclosures for ....
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