Reserve Bank of India issues KYC guidelines for banks; here's what customers need to know
RBI KYC Guidelines: The Reserve Bank of India has issued new guidelines for Know Your Customer (KYC) to strengthen the customer verification system. Under this, banks and non-banking financial companies (NBFCs) have been asked to adopt a risk-based approach regarding KYC updates from time to time.
After review, the Central Bank has amended the 'Master' guidelines regarding KYC. Under this, banks, NBFCs, and other entities under the purview of RBI will have to conduct due diligence of their customers as per the prescribed procedures.
RBI said that it had also updated some instructions as per the recommendations of FATF (Financial Action Task Force).
The step has been taken to ensure that information collected as part of customer investigations is retained, especially where the risk is high.