RBI

RBI relaxes norms for periodic updation of KYC by banks. Accounts operations not to be restricted till 31.12.2021

RBI relaxes norms for periodic updation of KYC by banks. Operations of such account not to be restricted till December 31, 2021

In terms of Section 38 of the Master Direction on KYC dated February 25, 2016, Regulated Entities (REs) are required to carry out periodic updation of KYC of existing customers.

However, in view the second wave of COVID-19 pandemic and related restrictions in various parts of the country, RBI has advised REs that in respect of the customer accounts where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021 unless warranted under instructions of any regulator/ enforcement agency/court of law, etc.

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