RBI announces rationalisation of compliance to KYC norms

The Reserve Bank of India on Wednesday announced the rationalisation of compliance to Know Your Customer (KYC) norms.

The measures include extending the scope of video KYC for new categories of customers such as proprietorship firms, authorised signatories and beneficial owners of Legal Entities and for periodic updation of KYC as well as the introduction of more customer-friendly options, including the use of digital channels for periodic updation of KYC details of customers.

It has also announced the conversion of limited KYC accounts opened based on Aadhaar e-KYC authentication in non-face-to-face mode to fully KYC-compliant accounts as well as enabling the use of KYC Identifier of Centralised KYC Registry (CKYCR) for video-based customer identification process and submission of electronic documents (including identity documents issued through DigiLocker) as identity proof.

“Keeping in view the Covid related restrictions in various parts of the country, Regulated Entities are being advised that for the customer accounts where periodic KYC updating is due or pending, no punitive restriction on operations of customer accounts shall be imposed till December 31, 2021 unless warranted due to any other reason or under instructions of any regulator/enforcement agency or court of law, etc,” RBI Governor Shaktikanta Das said.

However, account holders are requested to update their KYC during this period.

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