New Delhi: KYC Update – In a big update for bank customers, Reserve Bank of India (RBI) on Wednesday announced rationalisation of Know Your Customer (KYC) compliance norms. RBI Governor today provided the scope for video-based KYC for certain categories. Apart from this, the Central Bank has limited KYC to be used till December 1, 2021.
Here Are Big RBI Announcements for KYC Update
Taking forward the initiatives of the Reserve Bank for enhancing customer convenience, it has been decided to rationalise certain components of the extant KYC norms, RBI Governor stated.
RBI today extended the scope of video KYC known as V-CIP.
V-CIP is video-based customer identification process.
The V-CIP facility will be available for new categories of customers such as proprietorship firms, authorised signatories and beneficial owners of Legal Entities.
For periodic updation of KYC, RBI has announced conversion of limited KYC accounts opened on the basis of Aadhaar e-KYC authentication in non-face-to-face mode to fully KYC-compliant accounts.
RBI has enabled the use of KYC Identifier of Centralised KYC Registry (CKYCR) for V-CIP and submission of electronic documents (including identity documents issued through DigiLocker) as identify proof.
RBI has introduced more customer-friendly options, including the use of digital channels for the purpose of periodic updation of KYC details of customers.
Further, 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 account(s) shall be imposed till December 31, 2021, RBI stated.
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