RBI Relaxes KYC Norms, Tells Banks Not To Impose Any Restrictions This Year

The Reserve Bank on Wednesday requested banks and different regulated monetary entities to not impose any punitive restriction towards prospects for failure to replace KYC until December finish, in view of the second wave of coronavirus circumstances. The RBI has additionally determined to increase the scope of video KYC (know-your-customer) or V-CIP (video-based buyer identification course of) for brand new classes of consumers akin to proprietorship corporations, authorised signatories and helpful homeowners of authorized 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 mentioned whereas saying steps to cope with the COVID pandemic.

Henceforth, banks or regulated entities is not going to impose punitive restrictions on prospects until warranted attributable to another purpose or below directions of any enforcement company or court docket. In his deal with, Das burdened that RBI stands in “battle readiness” to make sure that monetary circumstances stay congenial and markets proceed to work effectively.

“We will work in close co-ordination with the government to ameliorate the extreme travails that our citizens are undergoing in this hour of distress. We are committed to go unconventional and devise new responses as and when the situation demands. We must also stay focused on our future, which appears bright even at this juncture, with India set to emerge as one of the fastest growing economies in the world,” he mentioned.

The governor, who introduced a number of set of measures in wake of the second wave of the COVID-19 pandemic, additional mentioned the central financial institution will proceed to be proactive all year long – taking small and massive steps – to cope with the evolving scenario.