RBI gives exemption in KYC rules till the end of the year

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Mumbai: RBI gave KYC rules till end of the year

In view of the growing cases of Corona, RBI has exempted bank account holders in KYC (No Your Customer) rules. KYC has asked banks and other regulated firms not to impose transactions on the customer accounts for which KYC is pending till the end of this year. Account holders will have to update their KYC during this period.

Due to the outbreak of epidemic and lockdown in many states, it is now difficult for the customers to go to the bank branch and complete the KYC. Recently, State Bank of India (SBI) said that it would allow customers to submit documents via email or post to update KYC.

RBI also expanded the scope of video KYC. Banks usually invite their account holders to branch with self-attested documents to update KYC. These documents include identity proof and address proof. Customers have to stand in queues to submit these documents so that their bank account remains active. If the customer misses the last date of updating the KYC, the bank can freeze the account.
RBI has now allowed digital means to update KYC details. These include submission of electronic documents via video-KYC and DigiLocker to financial institutions for verification.

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