RBI relaxes KYC rules, tells banks not to impose any restrictions until the end of December | India News
MUMBAI: The Reserve Bank asked banks and other regulated financial entities on Wednesday not to impose any punishment restriction against customers for not updating key code until the end of December, in view of the second wave of coronavirus cases.
The RBI has also decided to expand the scope of KYC video (know your customer) or V-CIP (video-based customer identification process) for new categories of customers, such as proprietary firms, authorized signatories, and beneficial owners of legal entities.
“Taking into account the restrictions related to Covid in various parts of the country, regulated entities are informed that for customer accounts in which the periodic update of KYC is pending or expired, no punitive restrictions will be imposed on operations. from customer accounts December 31, 2021, “RBI Governor Shaktikanta das he said when announcing steps to deal with the Covid pandemic.
From now on, banks or regulated entities will not impose punitive restrictions on clients unless justified for any other reason or under the instructions of any enforcement agency or court.
In his speech, Das emphasized that the RBI is “ready for battle” to ensure that financial conditions remain pleasant and markets continue to function efficiently.
“We will work closely with the government to ameliorate the extreme tribulations our citizens are going through in this hour of trouble. We are committed to going unconventional and designing new responses when the situation calls for it. We must also stay focused on our future, it seems. brilliant even at this juncture, with India poised to emerge as one of the fastest growing economies in the world, “he said.
The governor, who announced several measures in the wake of the second wave of the Covid-19 pandemic, also said that the central bank will continue to be proactive throughout the year, taking small and large steps, to cope with the evolution of the situation.