The Reserve Bank of India (RBI) has announced changes to the Know Your Customer (KYC) norms to align them with recent amendments carried out in the Prevention of Money Laundering Rules and revised certain existing instructions. Now regulated entities (RE) will have to apply the customer due diligence procedure at the unique customer identification code (UCIC) level. Thus, if an existing KYC-compliant customer of an RE desires to open another account or avail any other product or service from the same RE, there shall be no need for a fresh CDD exercise as far as identification of the customer is concerned.
As per the circular issued by the RBI, the amended provisions in the Master Direction have come into force with immediate effect. Amendments have also been made regarding CDD Procedure and sharing KYC information with the Central KYC Records Registry (CKYCR).
The amendments aim to strengthen compliance across financial institutions, ensuring that KYC procedures are robust in preventing money laundering and terrorist financing activities. This includes enhanced monitoring mechanisms for transactions and more rigorous identification processes. The update reflects the RBI’s commitment to keeping India's banking and financial systems secure and in line with global standards on transparency and accountability.
The RBI also shared, "Whenever the RE obtains additional or updated information from any customer, the RE shall within seven days or within such period as may be notified by the Central Government, furnish the updated information to CKYCR, which shall update the KYC records of the existing customer in CKYCR."
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