RBI is not worried about some compliance deviations by banks but they must have a proper system for rectifying such errors, Reserve Bank Deputy Governor K C Chakrabarty said on Friday.
“We are not worried that there are certain deviations (in KYC norms). But you must have a system to identify that there is something wrong and rectify it immediately,” the deputy governor said. Speaking in context of the recent Cobrapost expose, which claimed that almost all the banks and financial institutions are flouting KYC norms, Chakrabarty said, “The last bit on rectification is missing with the banks and hence, we do not have a strong compliance culture.”
He was speaking after launching a certified banking compliance course by the Institute of Company Secretaries and the Indian Institute of Banking and Finance here this evening. On the Cobrapost expose, he said, “There is no revelation in that. Their only revelation is that there is black money and banks are allowing in black money. Actually you don’t require a sting operation for that.”
For better compliance, Chakrabarty said banks should have a compliance policy, structure, manual, properly identified people and an internal audit as well.