So, guess what? The RBI, that’s like the big boss of banks in India, decided to make things easier for some important people when it comes to banking. You know those big shots in politics? Like leaders of other countries, top politicians, big military leaders, and even the people who run those huge state-owned companies. They’re called politically exposed persons or PEPs.
Before, being a PEP meant a lot of extra hassle when you wanted to open a bank account. It was like trying to figure out a super complicated puzzle blindfolded! But the RBI thought, “Hey, let’s make things simpler for these guys.”
Also Read: Stock Market Shindig: Sensex and Nifty Keep the Party Going!
So, they changed some rules in what they call Know Your Customer (KYC) norms. KYC norms are like the rules banks follow to make sure they know who their customers are and that they’re not up to anything fishy. The old rules were like trying to untangle a mess of wires, but the RBI cleaned things up.
They got rid of a confusing rule from 2016 that made it harder for PEPs to do banking stuff. No more jumping through extra hoops for them!
And get this: the RBI sent a message to all the bigwigs running banks and other financial services, saying, “Hey, you guys need to get with the program and make these changes fast!” Talk about a quick makeover!
Also Read: Titagarh Rail Systems’ Profit Surge Leaves Investors in Shock! Find Out Why!
But that’s not the only change in town. The government also made some tweaks to a law called the Prevention of Money Laundering Act. This law is all about stopping people from sneaking dirty money into the system. They added some new rules and made it so that even non-government organizations have to be super clear about where their money is coming from.