UCBs - KYC/AML Standards/Combating Financing of Terrorism/Obligation of Banks under PMLA, 2002 - ‘At par’ cheque facility extended to Cooperative Banks by SCBs - ربی - Reserve Bank of India
UCBs - KYC/AML Standards/Combating Financing of Terrorism/Obligation of Banks under PMLA, 2002 - ‘At par’ cheque facility extended to Cooperative Banks by SCBs
RBI/2013-14/332 October 22, 2013 The Chief Executive Officer Madam / Dear Sir, Know Your Customer (KYC)/Anti Money Laundering (AML) Standards/Combating Financing of Terrorism (CFT)/ Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002 – ‘At par’ cheque facility extended to Cooperative Banks by Scheduled Commercial Banks It has been observed that UCBs are utilizing ‘at par’ cheque facility extended by Scheduled Commercial Banks not only for their own use but also for their customers, including walk-in customers. 2. Keeping in view the systemic and supervisory concerns that emanate from such an arrangement, UCBs are advised to utilize the ‘at par’ cheque facility only for the following purposes:
3. In order to utilise the ‘at par’ cheque facility in the above manner, UCBs should maintain
UCBs should also ensure that all ‘at par’ cheques issued by them are crossed ‘account payee’ irrespective of the amount involved. 4. UCBs are advised to make use of more efficient means of remittances for the customers like NEFT or RTGS by providing such services directly or by becoming sub-members of banks providing such services as per regulations in this regard issued by RBI from time to time. Yours faithfully, (P.K. Arora) |