RBI Revamps KYC Norms for Streamlined Banking

The Reserve Bank of India has updated its Know Your Customer (KYC) guidelines to align with recent amendments in anti-money laundering laws. Regulated entities can now apply customer due diligence at the unique customer identification code level, simplifying procedures for pre-existing customers opening new accounts.

The Reserve Bank of India (RBI) has announced significant revisions to its Know Your Customer (KYC) guidelines, aiming to streamline banking processes by aligning them with recent legislative amendments in anti-money laundering rules.

The updated KYC directions stipulate that regulated entities (REs) must perform customer due diligence (CDD) at the unique customer identification code (UCIC) level. This change eliminates the need for fresh CDD if an existing KYC-compliant customer opts to open new accounts or use other services within the same entity.

Furthermore, amendments focusing on the CDD procedure and the sharing of information with the Central KYC Records Registry (CKYCR) have also been implemented. The rules stipulate that any updated customer data must be provided to CKYCR within a week, ensuring accurate and current KYC records.

(With inputs from agencies.)