RBI extends deadline for KYC update till March 31
Mumbai: The Reserve Bank of India (RBI) has extended the last date for periodic KYC update till March 31. The decision comes amid Covid-19 new variant Omicron uncertainties.
The Reserve Bank of India has advised banks and other regulated entities not to take restrictive action against customers till the fiscal end. Earlier in May, the RBI had extended the last date for updating the KYC by regulated entities till December-end amid the second wave of Covid-19.
[caption id="" align="aligncenter" width="770"]
Social media[/caption]
Also read | Omicron: Yellow alert to continue, no fresh restrictions for now
"In view of the prevalent uncertainty due to new variant of Covid Omicron, the relaxation provided in the...circular (relating to Periodic Updation of KYC – Restrictions on Account Operations for Non-compliance issued in May) is hereby extended till March 31, 2022," the RBI said on Thursday.
In May, the RBI had advised the regulated entities not to impose punitive restriction on operations of accounts of customers for their failure to comply with the KYC updation norms till December-end.
[caption id="" align="aligncenter" width="1280"]
Social media[/caption]
Also read | Omicron is spreading in community: Delhi Health Minister
What is KYC?
KYC means Know Your Customer and sometimes Know Your Client. KYC or KYC check is the mandatory process of identifying and verifying the client's identity when opening an account and periodically over time.
[caption id="" align="aligncenter" width="600"]
Social media[/caption]
In other words, banks must make sure that their clients are genuinely who they claim to be. Banks may refuse to open an account or halt a business relationship if the client fails to meet minimum KYC requirements.
-PTC News
