News

Nabard to check KYC norms of depositors at cooperative banks in India

Thursday 16 February 2017 10:25 CET | News

Nabard has deployed 800 officials for the physical verification of KYC documents of over five million district central cooperative bank (DCCBs) accounts in India.

Moreover, not only consumers’ banks accounts are verified, but also 180,000 primary agriculture credit society (PAC) accounts. Banks across India, including cooperative banks, started exchanging and receiving deposits of invalidated Rs500 and Rs1,000 notes from 10 November 2016. Four days later, on 14 November, the Reserve Bank of India (RBI) prohibited cooperative banks from accepting these notes.

About Rs7,000 crore was still lying with the National Bank for Agriculture and Rural Development (Nabard) at that time, which RBI has refused to accept, fearing some of it may be illicit cash. The banks approached the Supreme Court, which directed Nabard to verify the KYC details of individuals and PACs who deposited this money.

Since there is no data on who all have deposited the Rs7,000 crore, the bank will check the KYC details of all account holders. The verification process needs to be completed by mid-March 2017. At a post monetary policy press conference RBI deputy governor said the final numbers will be revealed after 30 June 2016 when all windows for depositing old notes will be closed, according to LiveMint.


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: India, KYC, demonetization, cash, digital money, deposits, mobile banking, online banking, Nabard
Categories: Banking & Fintech
Companies:
Countries: World
This article is part of category

Banking & Fintech






Industry Events