Latest news with #KnowYourCustomer
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Business Standard
3 days ago
- Business
- Business Standard
Not mandatory for customers to opt for digital banking: RBI draft norms
Banks should not make it mandatory for customers to opt for any digital banking channel to avail themselves of other facilities, such as debit cards, the Reserve Bank of India (RBI) said in the draft norms on Digital Banking Channels Authorisation, released on Monday. 'While it may be more convenient for the customer to opt for some services together (for example, virtual access to card controls), the choice to apply for digital banking facilities shall lie solely with the customer,' the draft norms said, clarifying that banks can continue to obtain and record mobile numbers of customers to send transaction alerts and other notifications in line with KYC (Know Your Customer) requirements at the time of opening accounts. Further, the norms stated that banks should obtain consent from customers for providing digital banking services. 'Banks shall obtain explicit consent from the customer for providing digital banking services, which may be duly recorded and documented. It shall also be clearly indicated that SMS/email alerts will be sent to the mobile number/email of the customer registered with the bank for operations, both financial and non-financial, in their account(s).' Digital Banking Channels refer to modes provided by banks over websites (i.e., internet banking), mobile phones (i.e., mobile banking), or other digital channels through electronic devices/equipment for the execution of financial transactions. The draft norms also proposed that third-party products and services, including those of promoter groups or bank group entities (subsidiaries/joint ventures/associates), should not be displayed on banks' digital banking channels except as specifically permitted by the RBI. In addition, the RBI said that banks shall put in place risk-based transaction monitoring and surveillance mechanisms. 'Study of customer transaction behaviour patterns and monitoring unusual transactions or obtaining prior confirmation from customers for outlier transactions may be incorporated in the systems in accordance with the Fraud Risk Management Policy of the bank,' it said. Comments on the draft norms are invited from stakeholders until August 11, 2025.
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Business Standard
3 days ago
- Business
- Business Standard
Experts believe the tie-up could help resolve long-standing bottlenecks in KYC compliance, particularly in underserved regions
The Department of Posts (DoP) has partnered with the Association of Mutual Funds in India (Amfi) to provide Know Your Customer (KYC) verification services through its vast network of over 164,000 post offices across India. The agreement, signed on July 17, aims to streamline KYC compliance for approximately 241.3 million mutual fund folios, including 190.4 million equity, hybrid and solution-oriented schemes. 'This collaboration harnesses our extensive postal infrastructure to support financial inclusion and simplify KYC processes for investors nationwide,' said Manisha Bansal Badal, general manager (Business Development), Department of Posts. Why does this matter for investors? KYC compliance is mandatory for investing in mutual funds. Until now, offline investors had to visit asset management companies (AMCs) or registrar offices for document verification. Under this initiative, postal employees will assist investors in: Completing KYC forms Verifying and attesting self-attested documents Forwarding them to AMCs for processing 'This MoU marks a significant step in the industry's efforts to ensure regulatory compliance for investors residing in remote areas,' said VN Chalasani, chief executive, AMFI. Experts see a big boost for participation Financial experts say the tie-up could help resolve long-standing bottlenecks in KYC compliance, particularly in underserved regions. 'Enabling KYC at post offices is a strong move. In rural and semi-urban areas, trust matters more than tech, and post offices are trusted places. This will remove a key entry barrier for mutual fund investors in these regions,' said Navy Vijay Ramavat, managing director, Indira Group. 'For those whose KYC is stuck or rejected, this brings a much-needed physical touchpoint. Even in bigger cities, many people still struggle with digital-first norms. If executed well, this step can bring first-time investors into the fold, not just by simplifying KYC, but by making investing feel accessible, human, and local,' he added. Niranjan Babu Ramayanam, chief operating officer, Anand Rathi Wealth Limited, believes this partnership could be a game changer, 'As per industry sources, there are many clients who have invested in the past but have not updated their KYC as per the latest regulatory requirements. With the widespread presence of post offices across the country, this MoU will help AMCs reach such clients and assist them in updating their KYC to restart investments.' he said India added nearly 9.7 million new mutual fund investors in FY25. Experts say this initiative could unlock further growth, especially as Sebi's tightened KYC norms have left many investors unable to transact. 'This initiative will help resolve the KYC 'On Hold' or 'Rejected' statuses more efficiently, especially in rural areas where investors lack guidance to complete documentation,' said Ramayanam. 'There will be a substantial rise in SIPs from such investors once their KYC is validated.'
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Business Standard
3 days ago
- Business
- Business Standard
Updating your mutual fund KYC? Post offices can now do it for you
The Department of Posts (DoP) has partnered with the Association of Mutual Funds in India (Amfi) to provide Know Your Customer (KYC) verification services through its vast network of over 164,000 post offices across India. The agreement, signed on July 17, aims to streamline KYC compliance for approximately 241.3 million mutual fund folios, including 190.4 million equity, hybrid and solution-oriented schemes. 'This collaboration harnesses our extensive postal infrastructure to support financial inclusion and simplify KYC processes for investors nationwide,' said Manisha Bansal Badal, general manager (Business Development), Department of Posts. Why does this matter for investors? KYC compliance is mandatory for investing in mutual funds. Until now, offline investors had to visit asset management companies (AMCs) or registrar offices for document verification. Under this initiative, postal employees will assist investors in: Completing KYC forms Verifying and attesting self-attested documents Forwarding them to AMCs for processing 'This MoU marks a significant step in the industry's efforts to ensure regulatory compliance for investors residing in remote areas,' said VN Chalasani, chief executive, AMFI. Experts see a big boost for participation Financial experts say the tie-up could help resolve long-standing bottlenecks in KYC compliance, particularly in underserved regions. 'Enabling KYC at post offices is a strong move. In rural and semi-urban areas, trust matters more than tech, and post offices are trusted places. This will remove a key entry barrier for mutual fund investors in these regions,' said Navy Vijay Ramavat, managing director, Indira Group. 'For those whose KYC is stuck or rejected, this brings a much-needed physical touchpoint. Even in bigger cities, many people still struggle with digital-first norms. If executed well, this step can bring first-time investors into the fold, not just by simplifying KYC, but by making investing feel accessible, human, and local,' he added. Niranjan Babu Ramayanam, chief operating officer, Anand Rathi Wealth Limited, believes this partnership could be a game changer, 'As per industry sources, there are many clients who have invested in the past but have not updated their KYC as per the latest regulatory requirements. With the widespread presence of post offices across the country, this MoU will help AMCs reach such clients and assist them in updating their KYC to restart investments.' he said What investors need to know? According to the Sebi's current guidelines, accepted documents for KYC include: Passport Driving licence Aadhaar card Voter ID NREGA job card (signed by a government officer) National Population Register letter How to check your KYC status? Visit any mutual fund website or registrar portal Enter your 10-digit PAN Check if your KYC status is: KYC Validated: Free to invest KYC Registered: Can invest in existing AMCs but may require fresh KYC for new ones KYC On-Hold/Rejected: Requires issue resolution A potential game changer for mutual funds India added nearly 9.7 million new mutual fund investors in FY25. Experts say this initiative could unlock further growth, especially as Sebi's tightened KYC norms have left many investors unable to transact. 'This initiative will help resolve the KYC 'On Hold' or 'Rejected' statuses more efficiently, especially in rural areas where investors lack guidance to complete documentation,' said Ramayanam. 'There will be a substantial rise in SIPs from such investors once their KYC is validated.' The agreement, effective for one year and renewable, includes strict confidentiality safeguards and Sebi compliance.
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Business Standard
10-07-2025
- Business
- Business Standard
ED cracks down on opinion trading platform Probo, freezes ₹284.5 crore
The Enforcement Directorate (ED) freezes ₹284.5 crore worth of assets in its crackdown on Probo, an opinion trading platform. The company assures co-operation with ongoing law enforcement inquiries premium Listen to This Article The Enforcement Directorate (ED) this week conducted search operations at four premises linked to the opinion trading platform Probo in Gurugram and Jind, Haryana, and froze assets worth ₹284.5 crore. The ED cracked down on the company and its promoters, Sachin Subhaschandra Gupta and Ashish Garg, under the provisions of the Prevention of Money Laundering Act (PMLA) 'in connection with the company's illegal gambling/betting activities across India.' The ED added that the platform lacked safeguards to prevent minors from registering as users, did not follow Know Your Customer (KYC) due diligence, and was found to be inducing new users through
Techday NZ
10-07-2025
- Business
- Techday NZ
Deepfake & AI crime surge poses major threat to business trust
Trend Micro has released a new report outlining the increasing adoption of generative AI and deepfake technologies by cybercriminals, highlighting growing risks in business fraud, identity theft, and online extortion schemes. Deepfakes move to the mainstream The report indicates that deepfake-enabled cybercrime has developed in both scale and maturity, with generative AI tools now being used for various malicious purposes. These tools, originally intended to assist content creators, are now leveraged by cybercriminals to impersonate executives, circumvent established financial controls, and compromise internal human resource processes. According to the research, the accessibility and affordability of AI-generated media have significantly lowered the barrier to entry for cybercriminals. Off-the-shelf platforms producing video, audio, and image deepfakes are now readily obtainable, requiring little technical expertise on the part of users. As a result, digital trust and the reliability of traditional identity verification systems are being challenged by increasingly convincing synthetic media. Andrew Philp, ANZ Field CISO at Trend Micro, said, "AI-generated media is not just a future risk, it's a real business threat. We're seeing executives impersonated, hiring processes compromised, and financial safeguards bypassed with alarming ease. This research is a wake up call - if businesses are not proactively preparing for the deepfake era, they're already behind. In a world where seeing is no longer believing, digital trust must be rebuilt from the ground up." Research findings documented in the report confirm that attackers can now easily access guides, toolkits, and off-the-shelf solutions intended for content creation but re-purposed for cybercriminal activity. These resources are being actively traded within criminal communities, providing step-by-step techniques for bypassing onboarding checks and utilising plug-and-play deepfake solutions that make sophisticated attacks available to less-experienced perpetrators. Business risks and real-world impacts The application of deepfake technologies has been noted in several key areas highlighted by Trend Micro's report. In the financial sector, there has been a rise in attempts to use AI-generated media to bypass Know Your Customer (KYC) requirements, facilitating anonymous money laundering activities through the use of falsified identification documents and credentials. Businesses are also facing CEO fraud, where deepfake audio or video is used to impersonate senior executives. These attacks can take place in real time during meetings or conference calls, making detection increasingly difficult for unsuspecting teams. Such incidents expose companies to potential financial loss as well as reputational damage, as sensitive internal information may be compromised. The recruitment sector is another area singled out for concern. The report details cases where job applicants use deepfake video or audio to impersonate real candidates and pass interviews, thus gaining unauthorised access to confidential systems and data from within organisations. Growing and accessible cybercrime ecosystem The research describes a flourishing underground ecosystem built around the proliferation of these AI-powered tools. Tutorials and toolkits for crafting deepfakes and conducting scam operations are widely available, diminishing the need for technical proficiency. Face-swapping tools and voice clones are provided as services, making professional-grade results accessible with minimal investment. Trend Micro stresses that these trends represent an urgent need for businesses to adopt proactive measures. This includes updating authentication processes, educating employees about the risks of social engineering, and incorporating detection mechanisms for synthetic media into their cybersecurity strategies. Mitigation and staff awareness To address the evolving threat landscape, the report advocates for a comprehensive approach focused on minimising risk and protecting internal processes. Specific recommendations include regular staff training to recognise social engineering tactics, a review of existing security authentication protocols, and investment in technology capable of detecting deepfake media. Trend Micro's study serves as a reminder that as generative AI technology continues to advance and become more accessible, vigilance and adaptability will be critical components in maintaining organisational security and digital trust.
