.........The RBI issued the draft guidelines on wealth management/marketing/distribution services in the wake of recent allegations of banks being involved in tax evasion and fraudulent transfer of funds practices. In the guidelines, the RBI said banks may conduct all WMS activities — referral, investment advisory service and portfolio management service — either from a separate subsidiary or through a separately identifiable department/division. Banks, including their subsidiaries, who are already undertaking the above activities, may reorganise the structure in accordance with the final guidelines within a period of one year from the date of issue of the final guidelines.................
