Amendment to Master Direction (MD) on KYC – KYC norms for Self Help Groups (SHGs)

Last updated: 05 April 2021

Save Share

Quick Summary

The Reserve Bank of India (RBI) has amended its Master Direction on Know Your Customer (KYC) norms specifically for Self Help Groups (SHGs). The updated directive simplifies Customer Due Diligence (CDD) for SHGs, requiring it only at the time of credit linking. This amendment updates the existing Master Direction on KYC from February 25, 2016, and is effective immediately.

Reserve Bank of India

RBI/2021-22/10
DOR.AML.BC.No.1/14.01.001/2021-22

April 1, 2021

The Chairpersons/ CEOs of all the banks

Madam/Sir,

Amendment to Master Direction (MD) on KYC – KYC norms for Self Help Groups (SHGs)

Please refer to Section 43 of the Master Direction on KYC dated February 25, 2016 as amended from time to time, wherein simplified norms for Self Help Groups (SHGs) have been stipulated.

2. In this regard, on a review, it has been decided to amend clause (c) of Section 43 to read as under:

“Customer Due Diligence (CDD) of all the members of SHG may be undertaken at the time of credit linking of SHGs.”

3. The Master Direction on KYC dated February 25, 2016, is hereby updated to reflect the changes effected by the above amendment and shall come into force with immediate effect.

Yours faithfully,

(Thomas Mathew)
Chief General Manager

FAQ :

The Customer Due Diligence (CDD) for SHGs will now be undertaken only at the time of credit linking, simplifying the process.

The Master Direction (MD) on KYC, specifically Section 43, has been amended.

The amendment comes into force with immediate effect from April 1, 2021.

CDD stands for Customer Due Diligence.

The amendment was issued by the Reserve Bank of India (RBI).

Guest

Notification No : RBI/2021-22/10 DOR.AML.BC.No.1/14.01.001/2021-22
Published in Community & General
Source : https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=12060&Mode=0

Share Report Abuse

Comments