Will tweak KYC norms if required: Chakrabarty

RBI Deputy Governor K C Chakrabarty today said the central bank may introduce some corrective measures in KYC norms as an when necessary to check any "transaction-level aberrations" in the functioning of banks.
"System is good, there is no problem. There are... (at the) transactional level, some aberration will always take place and there is a need to look into those issues and as and when it is necessary, banks will take the corrective measures. And if necessary, from the Reserve Bank, regulator side, we will issue the corrective measures," he said.
Chakrabarty was asked whether the RBI is contemplating a change in the Know Your Customer (KYC) norms in the wake of news portal Cobrapost in a sting operation allegedly showing readiness by some officials of ICICI Bank, HDFC Bank and Axis Bank to put unaccounted money into investment products.

"We are examining...Changing how the business is done," he said while speaking to reporters.
Asserting that there are no systemic issues involved, Chakrabarty said the RBI had looked into the issue.
After a meeting with the RBI brass last week, Department of Financial Services Secretary Rajiv Takru had said that the RBI report points out to some "aberrations" and assured action against the erring parties.
Chakrabarty reiterated that there is no money laundering involved and said such talk is prompted by "financial illiteracy".