One of the significant frauds committed by many banks is .... Neglecting the borrower's re-KYC process. This has become a common practice among banks, where they are not adhering to the guidelines set by the Reserve Bank of India (RBI). As a result, many cases end up as non-performing assets (NPAs), and the lack of proper re-KYC is one of the contributing factors. What Is Re-KYC? Re-KYC involves verifying and updating customer identification documents to ensure their accuracy and compliance with regulatory norms. Key Aspects of Re-KYC: → Regular Updates: Based on RBI guidelines, lenders must periodically ask customers to undergo Re-KYC. This ensures that their personal contact information and sign remains up-to-date. → Self-Declaration: When there are no changes in a customers KYC information, a self-declaration by borrower suffices. → Risk Management: Re-KYC helps banks manage risk by ensuring accurate customer data. It also contributes to preventing non-performing assets (NPAs). 📌 Conclusion: Banks must take Re-KYC seriously to maintain the integrity and stability of the financial system. 🤝🏻 Follow me Janmeyjai Bisht for more engaging insights that will keep you ahead of the curve in the world of finance. #finance #linkedin #investing #businessanalysis #connections
Great share @
Well explained
Well explained
You have highlighted it so well 💯
Very well Articulated 👏🏻
This is important and bank should not neglect this Janmeyjai Bisht, very well covered
Insightful!
Insightful share Janmeyjai Bisht
Assistant Manager at AKCJ Ventures | Ex Buy side Analyst at Indiabridge | 2M + impressions🚀 | 8000+ connections | Mentor for FMAV and Equity research
7moGreat