News:

• The Reserve Bank of India (RBI) has changed the definition of Politically-Exposed Persons (PEPs) under its Know Your Customer (KYC) norms, a move that will make it easier for those individuals to carry out various banking transactions, including availing loans.
• In the amended KYC direction, the central bank defines PEPs as “individuals who are or have been entrusted with prominent public functions by a foreign country, including the heads of states/governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials”.
• The new rules also include a person who is entrusted by a foreign country with a public function.
• Bank accounts of PEPs have additional KYC norms under the current provisions and special due diligence has to be undertaken by a senior bank official.