RBI tells banks to tighten KYC norms for walk-ins

The Reserve Bank of India (RBI) on Friday told banks to strictly adhere to customer identification and anti-money laundering rules for walk-in customers when selling insurance, mutual funds, gold or any other products above worth over Rs50,000.

The RBI added in its notification that the admonition comes after it observed that some banks were not complying with the ubiquitous 'know-your-customer' (KYC) rules for walk-in customers.

"It is reiterated that banks should meticulously follow the instructions in letter and spirit and ensure that violations of the above nature do not recur. Such violations would be viewed seriously by the Reserve Bank and would involve imposition of penalties," the RBI said in a release from its Mumbai headquarters.