RBI introduces 6 amendments to KYC guidelines.

Banking & Finance

The Reserve Bank of India (RBI) has introduced six amendments to the Master Direction - Know Your Customer (KYC) Direction, 2016 (as amended from time to time), effective from November 6, 2024.


      - Regulated Entities (REs) are required to adhere to the terms of the Master Direction on KYC to carry out Customer Due Diligence (CDD) for their customers.

      - The reason for the amendment in KYC rules is to coordinate with the recent changes in the Money Laundering (Record Maintenance) Rules, 2005 and to include the implementation of Section 51A of the UAPA, 1967. Additionally, some existing instructions have also been amended to make the rules more effective and appropriate.

     

Main Points:-   (i) The Six Amendments include the implementation of Customer Due Diligence (CDD) at the Unique Customer Identification Code (UCIC) level, allowing KYC-compliant customers to access services without repeat CDD. High-risk account definitions now require intensified monitoring, and "periodic updation" replaces "updation" for clarity on KYC updates.

      (ii) REs must update individual and legal entity KYC data with the Central KYC Records Registry (CKYCR) within seven days, which will notify reporting entities of changes. UAPA procedures have updated the Central Nodal Officer’s designation from 'Additional Secretary' to 'Joint Secretary,' and references to "section" are now "paragraph" for consistency in legal language.


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CEO : Shaktikanta Das
Headquarter : Mumbai
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