Mumbai: The Reserve Bank on Wednesday asked banks and other regulated financial entities not to impose any punitive restriction against customers for failure to update KYC till December end, in view of the second wave of coronavirus cases.
The RBI has also decided to extend the scope of video KYC (know-your-customer) or V-CIP (video-based customer identification process) for new categories of customers such as proprietorship firms, authorised 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.
Henceforth, banks or regulated entities will not impose punitive restrictions on customers unless warranted due to any other reason or under instructions of any enforcement agency or court.
In his address, Das stressed that RBI stands in battle readiness to ensure that financial conditions remain congenial and markets continue to work efficiently.