Mumbai: The Reserve Bank of India (RBI), on Wednesday, asks banks and other regulated financial entities for initiating relaxation of KYC norms. Keeping in view, the second wave of Covid 19, RBI has asked banks not to impose restrictions on customers who fail to update KYC till December end.
RBI has also decided to set up new facilities for video verification of KYC for new customers like proprietorship firms, authorized signatories, and beneficial owners of legal entities.
“Keeping in view the COVID-related restrictions in various parts of the country, Regulated Entities are being advised that for the customer accounts where periodic KYC updating is due/pending, no punitive restriction on operations of customer account(s) shall be imposed till December 31, 2021,” RBI Governor Shaktikanta Das said while announcing steps to deal with the COVID pandemic.
He added, ‘”We will work in close coordination with the government to ameliorate the extreme travails that our citizens are undergoing in this hour of distress. We are committed to going unconventional and devise new responses as and when the situation demands. We must also stay focused on our future, which appears bright even at this juncture, with India set to emerge as one of the fastest-growing economies in the world,”
The governor has also stated that the central bank will always try its best in providing help to deal with the present situation.