Bhopal (Madhya Pradesh): As the banks don’t seem to be following know your customer (KYC) norms strictly and online frauds are on rise, the police department will send letter to banks to strengthen KYC norms.
According to National Cyber Crime Reporting Portal, 15,000 complaints were filed in 2021in Madhya Pradesh this regard.
Additional director general of police (cyber) Yogesh Deshmukh told Free Press that more than 52 per cent of complaints filed on the portal were related to financial fraud.
He added that Reserve Bank of India has given directives to banks on keep a watch on transactions, but the banks are keeping their eyes closed and defrauded amount is parked in accounts and withdrawn. According to ADG, fraudsters look for unused bank accounts to park their money. Sometimes, even the account holder does not know what is happening to his account.
As per RBI directives, the banks are required to keep a close watch on cash withdrawals and deposit of Rs10 lakh and above, cash credit or overdraft accounts and maintain record of large transactions in a separate register.
Besides, an independent evaluation for high value transactions is required to be carried out on a regular basis by internal audit cell in the banks. The internal auditors should scrutinise and comment on the effectiveness of measures taken by branches in adoption of KYC norms and steps to prevent money laundering.
He added that most gangs or rackets operate from Jharkhand and West Bengal states.
“Why banks are not asking account holders about money transactions, why they are waiting for someone to file complaint. Branch manager and accounts section know about the money parked and withdrawn and that account holders don’t have capacity to handle huge amounts. But they keep their eyes closed,” Deshmukh said.
He added that banks compete to open maximum number of accounts and in the process, KYC norms are compromised.
Officially valid documents (OVDs) for KYC purpose include passport, driving licence, voters’ ID card, PAN card, Aadhaar card and job card issued by MNREGA signed by a state government official.