Latest news with #ElectronicBenefitTransfer
Deccan Herald
12-06-2025
- Business
- Deccan Herald
RBI asks banks to give due notices to customers for periodic KYC update
In a circular, the RBI said it has observed a large pendency in periodic updation of KYC, including in the accounts opened for credit of Direct Benefit Transfer (DBT)/ Electronic Benefit Transfer (EBT) under government schemes to facilitate credit of DBTs and/or scholarship amount (DBT/EBT/scholarship beneficiaries) and accounts opened under PMJDY.
Business Standard
12-06-2025
- Business
- Business Standard
RBI eases process for updation of KYC
The Reserve Bank of India (RBI) came up with a list of of amendments to its Know Your Customer (KYC) norms. The Reserve Bank has observed a large pendency in periodic updation of KYC including in the accounts opened for credit of Direct Benefit Transfer (DBT)/ Electronic Benefit Transfer (EBT) under Government schemes to facilitate credit of DBTs and/ or scholarship amount (DBT/ EBT/ scholarship beneficiaries) and accounts opened under PMJDY. In order to further ease the process for the convenience of customers, the instructions regarding updation/ periodic updation of KYC have been amended with the intent, inter alia, to allow BCs to facilitate in the process of KYC updation vide Reserve Bank of India (Know Your Customer (KYC)) (Amendment) Directions, 2025. Similar amendments related to inoperative accounts and unclaimed deposits have been made. The processes of onboarding customer and updation/ periodic updation of KYC have been simplified as follows: Face-to-face mode for onboarding the customer Customer may be onboarded in face-to-face mode through Aadhaar biometric based e-KYC authenticating and, in such case, if customer wants to provide a current address, different from the address as per the identity information available in the UIDAI database (i.e., Central Identities Data Repository), he may give a self-declaration to that effect to the RE (ref. paragraph 16 of the Master Direction on KYC). Further, Digital KYC process is also allowed for customer onboarding. Non-face-to-face (NFTF) modes for onboarding the customer Consent-based onboarding of customer in NFTF mode may be done using Aadhaar OTP based e-KYC authentication which is subject to certain conditions (ref. paragraph 17 of the Master Direction on KYC). Further, such account shall be placed under strict monitoring, and Customer Due Diligence (CDD) procedure shall be completed within a year. Customer onboarding in NFTF mode using digital modes such as KYC Identifier, equivalent e-documents, documents issued through DigiLocker, and non-digital modes such as obtaining copy of OVD certified by additional certifying authorities as allowed for NRIs and PIOs are subject to certain conditions. Customer onboarding using Video based Customer Identification Process (V-CIP) V-CIP is an alternate method of CDD by an authorised official of the RE by undertaking seamless, secure, live, informed and consent based audiovisual interaction with the customer to obtain identification information required for CDD purpose. V-CIP is treated on par with face-to-face onboarding. Simplified process of updation and periodic updation of KYC Self-declarations - REs are allowed to obtain self-declaration regarding "no change in KYC information" or "a change only in address details" from customers using digital and non-digital modes, through customer's email / mobile number registered with the RE, ATMs, digital channels (such as online banking / internet banking, mobile application of RE), letter, BCs, etc. The updation/ periodic updation of KYC records are allowed to be carried out at any branch of the RE with which customer maintains the account. Aadhaar OTP based e-KYC and V-CIP are permitted for the purpose of updation/ periodic updation of KYC. The REs have been directed to update customers' KYC information/ records based on the update notification received from CKYCR.
Yahoo
07-06-2025
- Yahoo
Rep. Vince Fong introduces SKIM Act to combat EBT fraud
BAKERSFIELD, Calif. (KGET) — For months, KGET has followed the EBT fraud crisis in Kern County. What started out as calls to our newsroom led to the revelation of dozens of victims and thousands of dollars in benefits stolen. The investigation shed light on millions of stolen dollars and a sophisticated Romanian crime ring operating across the county. After countless attempts of asking elected officials for answers, change may be coming from Capitol Hill. Skimming Scheme: The Romanian crime ring stealing EBT benefits in Kern County On Friday, Rep. Vince Fong (R-Bakersfield) introduced the 'Stopping Klepto-card and Identity Misuse Act' — or SKIM Act. This legislative effort is specifically designed to crack down EBT theft, that is Electronic Benefit Transfer, known as CalFresh and CalWorks in California. Rep. David Valadao (R-Hanford) is a co-sponsor of the bill. Through 17 News' investigation, we uncovered that the California Department of Social Services has lost more than $439 million in EBT benefits since 2021. In the last seven months, more than $2 million in Kern County taxpayer money has been stolen. Ex-Arvin teacher accused of sex with underage student set for hearing next week The SKIM Act directs the U.S. Attorney to coordinate federal, state, and local efforts to fight EBT fraud. It also asks sentencing guidelines to be much harder on EBT thieves. The bill also asks the Attorney General and the Secretary of Homeland Security to submit a report to Congress on their efforts to prevent, investigate, prosecute, and sentence convicted EBT thieves. You can read the SKIM Act in full here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
29-05-2025
- Business
- Yahoo
State: insufficient planning, funding pauses summer meals program
Officials with the Braun administration pointed to Gov. Eric Holcomb as the reason Indiana opted out of a student summer meals program. (Getty Images) Indiana Gov. Mike Braun's second-in-command, along with a key executive branch agency, pointed to a lack of planning under Gov. Eric Holcomb's administration as the reason hungry Hoosier schoolchildren won't be able to use a summer meals program. 'The previous administration did not file for SUN Bucks in the way they should have,' Lt. Gov. Micah Beckwith told a crowd at a Zionsville town hall on Tuesday. 'I'm working with Gov. Braun to get those SUN Bucks dollars back.' 'A giant leap backwards': Indiana opts out of summer program for hungry schoolchildren That 'lapse,' along with other perceived failures of Holcomb, were part of what propelled the duo into office, Beckwith continued. Last year, 669,000 Hoosier children who qualified for food benefits and reduced-price school meals got an additional $120 while schools were closed for the summer, for a total of roughly $80 million. But Indiana opted out of the program this year, saying that Holcomb's administration hadn't done the legwork in advance of 2025. Oversight costs for the program would be roughly $3.7 million for the state, according to the administration, a tough sell following the state's projected $2 billion revenue shortfall earlier this year. In response, budget writers trimmed nearly every agency by 5% and sharply cut into economic development and public health programs. 'The successful implementation of the SUN Bucks program required early planning and strategic coordination to launch in Summer 2025. To ensure a timely rollout, the Division of Family Resources (DFR) needed clear direction from state leadership during late summer to early fall of 2024, during the prior administration,' Marcus Barlow told the Indiana Capital Chronicle. Barlow is the deputy chief of staff and director of the office of Strategic Communications and Public Affairs for the Family and Social Services Administration, which administers the program alongside the Department of Education. He said 'due to the complexity of procurement processes and system enhancements,' the Holcomb administration should have done the following before 2025, which is when Braun took office: Finalize contract amendments with the Electronic Benefit Transfer processor to allocate funding for Summer EBT Secure a system vendor to support technical enhancements and application processing for 2025 Summer EBT, or S-EBT, is the official name for the SUN Bucks program. The Food and Nutrition Service, part of the U.S. Department of Agriculture, handles the program at the federal level. It's unclear what changed between the program's administration in 2024 and 2025 that necessitated such changes. In response to a follow-up question, Barlow noted that 'since that prior administration didn't move forward, no decisions were made regarding whether or not to use the same vendor.' 'Upon taking office, this administration quickly submitted a waiver application to the Food and Nutrition Service to explore all possible avenues for launching the program this summer. However, our review revealed that the gaps in prior preparations prevented implementation in time for Summer 2025,' Barlow said. That waiver application, dated for March 2025, appeared to indicate that the state was moving forward with the program and would be submitting a Plan for Operations and Management for approval under Braun's administration. However, Barlow didn't respond to further questions about that plan and whether it was submitted or approved, saying the Indiana Capital Chronicle would need to submit a records request for the document. The federal government also declined to share a copy of Indiana's plan or comment on whether it was submitted or approved. 'USDA Secretary (Brooke) Rollins believes in empowering states to tailor programs and policies to their specific circumstances, rather than imposing a one-size-fits-all approach. She recognizes that states are best equipped to understand their own populations and encourages them to explore innovative ideas to address their unique needs. Under Secretary Rollins, USDA is committed to engaging with Indiana to find bold and sustainable solutions that support and protect both participants and taxpayers,' a USDA spokesperson said. Barlow pointed to existing resources under the USDA's Site Finder Map and the Hunger Hotline for families to connect to food resources. The hotline is accessible Monday through Friday between 7 a.m. and 10 p.m. Eastern Time at 1-866-3-HUNGRY (1-866-348-6479) for English speakers or at 1-877-8-HAMBRE (1-877-842-6273) for Spanish speakers. CONTACT US At the Tuesday town hall, the devout Beckwith continued on the topic of summer meals by saying that the state should 'take advantage' of the federal money being offered. 'We should go after that federal money,' Beckwith said to cheers. 'It's just going to go to a different state.' Additionally, the Noblesville pastor asked the faith community to step up in place of the state to 'be the hands and feet of Christ in these communities' this summer. 'I don't think the state is equipped to do it as well as nonprofits,' Beckwith concluded. '… It's a nonprofit's (and) faith community's job to do it. They can do it better than the state (and) far more efficiently.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Time of India
23-05-2025
- Business
- Time of India
Periodic KYC update in bank account to become easier; RBI proposes new draft rules, allows time till June 30, 2026, to do KYC for these customers
Time till June 30, 2026, to do KYC for these bank customers whose periodic KYC update is due Live Events Provide due notices for KYC updation to the customers Use Business Correspondent to do KYC in certain cases Simplification of periodic KYC updation Ease of KYC for first time customers The Reserve Bank of India (RBI) has issued draft proposals for changes in the process of periodic updation of the Know-Your-Customer (KYC) in bank accounts. The proposed rules are expected to make bank customers' lives easier due to the requirement of periodic KYC updation As per the RBI, 'The Reserve Bank has observed a large pendency in periodic updation of KYC, including in the accounts opened for credit of Direct Benefit Transfer (DBT)/ Electronic Benefit Transfer (EBT) under Government schemes to facilitate credit of DBTs and/ or scholarship amount (DBT/ EBT/ scholarship beneficiaries) and accounts opened under PMJDY. Reserve Bank has also been receiving complaints regarding challenges faced by the customers in periodic updation of their KYC.'The comments on the draft Amendment Directions are invited from the public/ stakeholders tillAs indicated by the draft, bank customers will be in various risk categories. All bank customers are required to update their KYC periodically as communicated by their respective banks. As per the new rules, if a bank customer is categorised as low-risk, then he shall be allowed transactions for one year or till June 30, 2026, whichever is per the draft, 'Notwithstanding the provisions given above, in respect of an individual customer who is categorised as low risk, RE shall allow all transactions and ensure the updation of KYC within one year of its falling due for KYC or upto June 30, 2026, whichever is later. The RE shall subject accounts of such customers to regular monitoring. This shall also be applicable to low-risk individual customers for whom periodic updation of KYC has already fallen due.'The RBI, in its draft proposal, has asked the banks to provide adequate notices to the customers when the KYC in their bank accounts become due. The banks are required to give at least three advance intimation regarding periodic KYC per the draft proposal, 'RE shall intimate its customers, in advance, to update their KYC. Prior to due date of periodic updation of KYC, RE shall give at least three advance intimations, including at least one intimation by letter, at appropriate intervals to its customers through available communication options/ channels for complying with the requirement of periodic updation of KYC.'In case the customer is unable to do the periodic KYC updation within the due period, banks are required to give three reminders about the KYC as well.'Subsequent to the due date, RE shall give at least three reminders, including at least one reminder by letter, at appropriate intervals, to such customers who have still not complied with the requirements, despite advance intimations. The letter of intimation/ reminder may, inter alia, contain easy to understand instructions for updating KYC, escalation mechanism for seeking help, if required, and the consequences, if any, of failure to update their KYC in time. Issue of such advance intimation/ reminder shall be duly recorded in the RE's system,' as per the draft rule proposed by the RBI in its draft is the use of Business Correspondent (BC) by banks for the updation/periodic updation of KYC. This proposal will help the bank customers to visit their nearest BC to do the KYC as mandated under the KYC rules. However, customers can do their KYC via BC only if there is limited per the draft proposal, 'Self-declaration from the customer in case of no change in KYC information or change only in the address details may be obtained through an authorised BC of the bank. In such case, after successful biometric-based e-KYC authentication, the bank shall obtain the self-declaration, including the supporting documents, if required, from the customer through the BC. A bank may enable its BC systems for recording these self-declarations and supporting documents thereof in electronic form in the bank's systems. In case such an option is not available in the electronic mode and such a declaration is submitted in physical form by the customer, the BC shall authenticate the self-declaration and supporting documents submitted in person by the customer, and promptly forward the same to the concerned bank branch. The BC shall provide the customer an acknowledgement of receipt of such declaration /submission of documents. The bank branch shall update the customer's KYC records and intimate the customer once the records get updated in the system, as required under paragraph 38(c) of the Master Direction ibid. It is reiterated that the ultimate responsibility for periodic updation of KYC remains with the bank.'The RBI, in the draft, is proposing the simplification of updation and periodic KYC. This includes:i) Self-declarations - REs are allowed to obtain self-declaration regarding 'no change in KYC information' or 'a change only in address details' from customers using digital and non-digital modes, through customer's email / mobile number registered with the RE, ATMs, digital channels (such as online banking / internet banking, mobile application of RE), letter, BCs, etc.(ii) The updation/ periodic updation of KYC records are allowed to be carried out at any branch of the RE with which customer maintains the account.(iii) Aadhaar OTP based e-KYC and V-CIP are permitted for the purpose of updation/ periodic updation of KYC. (iv) REs have been directed to update customers' KYC information/ records based on the update notification received from from making the process of KYC updation easier, the RBI is also trying to ease the KYC process for first-time customers. The central bank has provided three ways for banks to do the KYC of first-time per the draft proposal, the customer's KYC can be done via Aadhaar biometric based e-KYC. 'Customer may be onboarded in face-to-face mode through Aadhaar biometric based e-KYC authenticating and, in such case, if customer wants to provide a current address, different from the address as per the identity information available in the UIDAI database (i.e., Central Identities Data Repository), he may give a self-declaration to that effect to the RE (ref. paragraph 16 of the Master Direction on KYC). Further, the Digital KYC process is also allowed for customer onboarding,' said the draft proposal.A bank can use either of the two ways to do KYC of a customer in NFTC mode. The first method is consent-based. As per the draft proposal, 'Consent-based onboarding of customer in NFTF mode may be done using Aadhaar OTP based e-KYC authentication which is subject to certain conditions (ref. paragraph 17 of the Master Direction on KYC). Further, such account shall be placed under strict monitoring, and Customer Due Diligence (CDD) procedure shall be completed within a year. 'The second method is the use of digital modes for KYC. 'Customer onboarding in NFTF mode using digital modes such as KYC Identifier, equivalent e-documents, documents issued through DigiLocker, and non-digital modes such as obtaining copy of OVD certified by additional certifying authorities as allowed for NRIs and PIOs are subject to certain conditions,' as per the draft third process is the video-based customer identification process (V-CIP). As per the RBI draft, the video based process is treated on par with face-to-face onboarding. 'V-CIP is an alternate method of Customer Due Diligence by an authorised official of the RE by undertaking seamless, secure, live, informed and consent-based audiovisual interaction with the customer to obtain identification information required for customer due diligence purpose.'
