Periodic Updation of KYC – Restrictions on Account Operations for Non-compliance

Last updated: 06 May 2021

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The Reserve Bank of India (RBI) has issued a directive regarding the periodic updation of Know Your Customer (KYC) details. In light of COVID-19 restrictions, Regulated Entities (REs) are advised not to impose any restrictions on customer accounts where KYC updation is due and pending. This grace period extends until December 31, 2021, unless otherwise mandated by regulators or legal authorities. REs are encouraged to continue their efforts to engage with customers to complete the KYC process.

Reserve Bank of India RBI/2021-22/29 DOR. AML.REC 13/14.01.001/2021-22 May 5, 2021 The Chairpersons/ CEOs of all the Regulated Entities Madam/Sir, Periodic Updation of KYC Restrictions on Account Operations for Non-compliance Please refer to Section 38 of theMaster Direction on KYC dated February 25, 2016, in terms of which Regulated Entities (REs) have to carry out periodic updation of KYC of existing customers. Keeping in view the current COVID-19 related restrictions in v

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FAQ :

The notification concerns the periodic updation of Know Your Customer (KYC) details for existing customers and the restrictions that may be imposed for non-compliance.

No, due to COVID-19 related restrictions, no restrictions will be imposed on account operations solely for pending periodic KYC updation until December 31, 2021.

Restrictions will not be imposed until December 31, 2021, provided the only reason for non-compliance is the pending periodic KYC updation.

Yes, restrictions can still be imposed if warranted by instructions from any regulator, enforcement agency, or court of law.

REs are advised to continue engaging with their customers to get their KYC updated, even during this period.

Notification No : RBI/2021-22/29 DOR. AML.REC 13/14.01.001/2021-22
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12083&Mode=0

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