COVID Crisis: RBI Relaxes Deadline For Bank KYC Update

Pic courtesy: The New Indian Express

New Delhi: In view of the second wave of coronavirus cases, the Reserve Bank of India (RBI) 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.

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-19 pandemic.

Das also stressed that RBI stands in “battle readiness” to ensure that financial conditions remain congenial and markets continue to work efficiently, NDTV reported.