(l) The Reserve Bank may, with respect to functions of the Central Registry referred to in rule 9A,call for any information, statement or other particulars from the Central Registry or cause an inspection of the Central Registry to be made by one or more of its officers as the Reserve Bank may deem fit.
(2) The Reserve Bank shall supply to the Central Registry, a copy of the report of such inspection.
(3)It shall be the duty of every director or officeror employee of the Central Registry to produce before the officer making an inspection under sub-section
(1) all such books, accounts and other documents in his custody and to furnish him with any statement and information relating to the affairs of the Central Registry, as the said officermay require of him.
(4) The expenses of the inspection under sub-rule (1) shall be borne by the Central Registry.]' I 2[10. Maintenance of the records of the identity of clients.-3[(1) Every reporting entity shall maintain the physical copy of records of the identity of
1. Ins. by G.5.R. 347(E),dated 12th April, 2017 (w.e.f. 12-4-2017).
2. Subs. by G.S.R. 576(E),dated 27th August, 2013, for rule 10 (w.e.f. 27-8-2013).Earlier rule 10 was amended G.5.R. 717(E),dated 13th December, 2005 (w.e.f. 13-12-2005),by G.5.R. 816(E), dated 12th November, 2009 (w.e.f. 12-11-2009)and by G.S.R. 508(E), dated 16th June, 2010 (w.e.f. 16-6-2010).Rule 10;before substitution by G.5.R.576(E),dated 27th August, 2013,stood as under:
"It). Maintenance of the records of the identity of clients.-(l) Every banking company or financial institution or intermediary, as the case may be, shall maintain the records of the identity of its clients. .
(2) The records of the identity of clients shall be maintained in hard and soft copies in a manner as may be specified by its Regulator, from time to time.
(3) The records of the identity of clients shall be maintained for a period of ten years from the date of cessation of the transactions between the client and the banking company or financial institution or intermediary, as the case may be.
Explanation.-For the purposes of this rule,-
(i) the expression 'records of the identity of clients' shall include records of the identification data, account files and business correspondence.
(ii) the expression 'cessation of the transactions' means termination of an account or business relationship.",
3. Subs. by G.5.R. 544(E),dated 7th July, 2015, sub-rule (1) (w.e.f. 7-7-2015).Sub-rule (1), before substitution, stood as under:
"(I) Every reporting entity shall maintain the records of the identity of its clients obtained in accordance with rule 9.".
Rule 11) The Prevention of Money-laundering (Maintenance of Records) Rules, 2005 83 its clients obtained in accordance with rule 9, after filing the electronic copy of such records with the Central KYCRecords Registry.]
1[(2)The records of the identity of clients shall be maintained by a reporting entity in the manner as may be specified by the Regulator from time to time.]
•(3) Where the reporting entity does not have records of the identity of its existing clients, it shall obtain the records within the period specified by the regulator, failing which the reporting entity shall close the account of the clients after giving due notice to the client.
Explanation.-For the purpose of this rule, the expression "records of the identity of clients" shall include updated records of the identification date, account files and business correspondence.]
2[lOA. Furnishing of Report to Director.-(l) The persons referred to in clause (c) of sub-section (2) of section 13 of the Act shall furnish reports on the measures taken to the Director every month by the 10th day of the succeeding month.
(2) The Director may relax the time interval in sub-rule (1) above to every three months on specific request made by the reporting entity based on reasonable cause.]
2[lOB. Expenses for audit.-(l) The expenses of, and incidental to, audit referred to in sub-section (lA) of section 13 of the Act (including the remuneration of the accountant, qualified assistants, semi-qualified and other assistants who may be engaged by such accountant) shall be paid in accordance with the amount specified in sub-rule (2) of rule 14Bof the Income-tax Rules, 1962for every hour of the period as specified by the Director.
(2) The period referred to in sub-rule (1) shall be specified in terms of the .
number of hours required for completing \he report.
(3) The accountant referred to in sub-section (lA) of section 13 of the Act shall maintain a time sheet and submit it to the Director, along with the bill.
(4) The Director shall ensure that the number of hours claimed for billing purposes is commensurate with the size and quality of the report submitted by the accountant.]