Know Your Customer guidelines eased for individuals by RBI

Guideline will help ease difficulty faced by individuals while opening bank accounts
Mumbai: The Reserve Bank of India (RBI) on Tuesday announced a slew of measures to deepen Indian’s financial markets and also made it easier for individuals to comply with a bank’s know your customer (KYC) guidelines.
With a view to easing difficulties faced by individuals while opening bank accounts and during periodic updating, the Reserve Bank said that the guidelines on KYC would be further simplified with immediate effect.
Accordingly, the requirement for physical presence of customers has been done away with for periodic updation of customer details. An existing KYC compliant customer who wants to open another account with the same bank does not have to submit fresh documents. Additionally, customers who fall in the ‘low risk category’ are no longer required to submit fresh proof of identity and address at the time of periodic updation of their details.
The Reserve Bank further added that the state level co-ordination committee’s (SLCC) would be further strengthened to ensure that public money flow into formal regulated channels. “SLCC’s are being strengthened to focus on financial inclusion for flow of public savings to the formal channels and protection of public deposits mopped up by unauthorised and unscrupulous entities,” RBI said.
In its fourth bi-monthly monetary policy, RBI also decided to permit scheduled urban co-operative banks to access the liquidity-adjusted facility (LAF) to provide them with an additional avenue for liquidity management.
( Source : dc correspondent )
Next Story