KYC in banks: New rules come into effect, know in detail

Published by : praveen | November 16, 2024 2:38 pm

The Reserve Bank of India (RBI) has updated its Know Your Customer (KYC) norms to align with recent amendments to the Prevention of Money Laundering (Maintenance of Records) Rules. These changes, effective immediately, also revise existing guidelines.

According to the Amendment to the Master Direction – Know Your Customer (KYC) Direction, 2016, regulated entities (REs) must conduct customer due diligence (CDD) at the unique customer identification code (UCIC) level.

“For KYC-compliant customers opening additional accounts or accessing new services within the same RE, no fresh CDD will be required for identification,” the circular explained.

The amendments also introduce updated procedures for CDD and mandate sharing of KYC information with the Central KYC Records Registry (CKYCR).

REs must submit updated customer information to CKYCR within seven days or within a period specified by the Central Government, enabling CKYCR to update the digital KYC records.

CKYCR functions as a central repository, securely managing customers’ KYC records in digital format.

Tags: banking compliance rules, CKYCR updates, customer due diligence, KYC compliance, KYC digital records, KYC guidelines 2024, KYC norms, KYC process in banks, KYC rule changes, new KYC rules, Prevention of Money Laundering Act, RBI amendments, RBI banking regulations, RBI circular on KYC, RBI KYC updates