The announcement comes as a major relief to account holders as many banks were asking customers to visit their branch to update KYC amidst the second wave of pandemic.
MUMBAI: The Reserve Bank on Wednesday asked banks and other regulated financial entities not to impose any punitive restriction against customers for failure to update KYC till December end, in view of the second wave of coronavirus cases.
The RBI has also decided to extend the scope of video KYC (know-your-customer) or V-CIP (video-based customer identification process) for new categories of customers such as proprietorship firms, authorised signatories and beneficial owners of legal entities. 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/pending, no punitive restriction on operations of customer account(s) shall be imposed till December 31, 2021, RBI Governor Shaktikanta Das said while announcing steps to deal with the Covid pandemic.
RBI eases KYC compliance; extends video KYC to new customers
By IANS |
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Reserve Bank of India (RBI). (File Photo: IANS). Image Source: IANS News
Mumbai, May 5 : The Reserve Bank of India did not stop at providing liquidity enhancement measures to tackle the current economic strain unleashed by the resurgence of a Covid-19 wave. It also rationalised certain compliance matters to provide ease of doing business for consumers.
Accordingly, RBI governor Shaktikanta Das, in his virtual address on Wednesday also announced rationalisation of compliance to KYC requirements.
Taking forward the initiatives of the apex bank for enhancing customer convenience, it has now been decided to rationalise certain components of the extant KYC norms including extension of the scope of video KYC known as V-CIP (video-based customer identification process) for new categories of customers such as proprietorship firms, authorised signatories and beneficial owners of Legal Entities and
RBI announces rationalisation of compliance to KYC norms
May 05, 2021
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The measures include extending the scope of video KYC for new categories and introducing more customer-friendly options. 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 e
RBI eases KYC compliance; no restrictions till December 31, 2021
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Customer accounts where periodic Know Your Customer (KYC) updating is new or pending will attract no punitive restriction on the operation of customer accounts till December 31, 2021, unless warranted, due to any other reason. Stating this, RBI governor Shaktikanta Das, in his virtual address on Wednesday also announced rationalisation of compliance to KYC requirements.
To enhance customer convenience, the RBI has now been decided to rationalise certain components of the extant KYC norms including extension of the scope of video KYC known as V-CIP (video-based customer identification process) for new categories of customers such as proprietorship firms, authorised signatories and beneficial owners of Legal Entities and for periodic updation of KYC,