RBI relaxes KYC norms, tells banks to not impose any restriction until Dec-end
The RBI has determined to increase the scope of video KYC or V-CIP for brand spanking new classes of shoppers similar to proprietorship corporations, authorised signatories and useful house owners of authorized entities.
The Reserve Bank on Wednesday requested banks and different regulated monetary entities to not impose any punitive restriction towards clients 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 spanking new classes of shoppers similar to proprietorship corporations, authorised signatories and useful house owners 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 stated whereas asserting steps to cope with the COVID pandemic.
Henceforth, banks or regulated entities is not going to impose punitive restrictions on clients until warranted resulting from another cause or beneath directions of any enforcement company or courtroom. In his tackle, Mr. Das harassed 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 stated.
The Governor, who introduced a number of set of measures in wake of the second wave of the COVID-19 pandemic, additional stated the central financial institution will proceed to be proactive all year long – taking small and massive steps – to cope with the evolving scenario.