RBI KYC Master Direction: RBI has decided to further strengthen the customer verification system (Know Your Customer), for which another initiative has been taken. RBI has issued master directions regarding KYC.
Reserve Bank of India KYC Update: Many types of campaigns are being run by the Reserve Bank of India to stop online frauds and frauds happening across the country. RBI has decided to further strengthen the customer verification system (Know Your Customer), for which another initiative has been taken. Under this new initiative, banks and non-banking finance companies are being asked from time to time to adopt the KYC system.
After review, the Central Bank has amended the ‘Master’ guidelines regarding KYC. Under this, banks, non-banking financial companies (NBFC) and other entities under the purview of RBI will have to conduct due diligence of their customers as per the prescribed procedures.
Updated these recommendations including FATF
Let us tell you that this amendment of RBI has come after the government’s new instructions related to Anti-Money Laundering Rules, Unlawful Activities (Prevention) Act (UAPA) and Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act. The Reserve Bank said that it has also updated some instructions in accordance with the recommendations of FATF.
Reserve Bank has issued new instructions
In the master instructions issued by RBI, it has been said that the risk-based system has been modified for periodic updates of KYC.
Under this, the units coming under the regulation of the Central Bank will have to adopt a risk-based system for periodic updates of KYC. To ensure that information collected as part of customer investigations is retained, especially where the risk is high.
