RBI KYC Rule: The Reserve Bank of India (RBI) has changed its ‘Know Your Customer’ (KYC) norms. This has been done to bring in line with the recent changes made in the Anti-Money Laundering (Maintenance of Records) Rules. As per the amendment in the Master Direction, the regulated entities (REs) under the KYC Directions, 2016 will have to implement Customer Fair Verification (CDD) process at the Unique Customer Identification Code (UCIC) level.
According to the notification…
According to the notification issued by the Reserve Bank of India on Wednesday, November 6, 2024, the Gazette Notification dated July 19, 2024, aligns the directions with the recent amendments made in the Prevention of Money Laundering Rules, 2005. (B) Include directions with reference to the corrigendum dated April 22, 2024 issued by the Government of India in the order dated February 2, 2021 on the ‘Procedure for Implementation of Section 51A of the Unused Activities (Prevention) Act, 1967’. (C) Modify some existing instructions” Amendments have also been made regarding the CCD process and sharing of KYC information with the Central KYC Record Registry (CKYCR).
According to the RBI notification
According to the RBI notification dated November 6, “the Master Direction on KYC has been amended to (a) align the instructions with the recent amendments carried out in the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 vide Gazette Notification dated July 19, 2024, (b) incorporate instructions in terms of the corrigendum dated April 22, 2024 issued by the Government of India to the Order dated February 2, 2021 on the ‘Procedure for implementation of Section 51A of the Unlawful Activities (Prevention) Act , 1967’, and (c) revise certain existing instructions.”
What is KYC?
Know Your Customer (KYC) is a process by which financial organizations check and verify their customers background and details. KYC these days is very essential. It helps in avoiding any illegal activities.
