Mumbai: In a major relief for customers, the Reserve Bank of India has streamlined KYC rules to ensure ease of access to financial products while reducing repetitive due diligence. The central bank aligned KYC or Know Your Customer norms in line with recent amendments to PMLA rules.
The Reserve Bank of India is the regulator for banks and financial services institutions in India. The central bank has stated from time to time that it takes policy measures with an eye on the end user, that is the consumer. From time to time, the central bank has taken a range of measures to ensure that customer rights are taken care of.
What is RBI’s new KYC rule
The RBI Master Direction on KYC rules states that customers will not have to repeatedly furnish their documents for KYC if they are availing of a new product or opening a new account with the same service provider. Going forward, the regulated entity will have to conduct due diligence at the level of unique customer identification code (UCIC).
The amendments will come into effect immediately. The amended provisions in the Master Direction have come into force with immediate effect, according to the RBI circular. The new amendments also require the regulated entity to share any updates to existing KYC records with the Central KYC Records registry, according to RBI.
RBI governor optimistic on Indian economy
RBI Governor Shaktikanta Das stated that the Indian economy was fundamentally strong despite mixed economic data coming in. The RBI governor stuck to RBI’s 7.2 per cent GDP forecast for Q2FY25 since it was based on the assessment of 70 economic indicators.
However, SBI Research has revised its Q2 India GDP forecast to 6.5 per cent from 6.7 per cent earlier, citing inherent pressure in the domestic economy, while calling it a temporary impasse.
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