On Wednesday i.e. 6 November 2024, the Reserve Bank of India (RBI) introduced new updates to the Know Your Customer (KYC) guidelines, aligning them with recent changes in the Prevention of Money Laundering (Maintenance of Records) Rules. This also includes revisions to some existing instructions.
Key Updates in KYC Process for Regulated Entities
The amended guidelines, under the “Master Direction – Know Your Customer (KYC) Direction, 2016,” now require regulated entities (REs) to conduct customer due diligence (CDD) at the level of the unique customer identification code (UCIC).
For existing customers who are already KYC-compliant and wish to open additional accounts or access new services from the same institution, no fresh CDD will be needed for identification purposes, according to the new directive.
These revised provisions have come into effect immediately, as outlined in an RBI circular.
New Procedures for CDD and KYC Data Sharing with CKYCR
The amendments also affect the CDD process and how KYC information is shared with the Central KYC Records Registry (CKYCR). The RBI specifies that whenever a regulated entity (RE) gathers additional or updated information from a customer, it must send this information to CKYCR within seven days or within a timeframe set by the Central Government. CKYCR will then update the customer’s digital KYC records accordingly.
What is CKYCR?
The Central KYC Records Registry (CKYCR) is a centralized entity that securely stores, retrieves, and updates the KYC records of customers in digital form, helping to streamline identity verification processes across financial institutions. These updates are intended to improve compliance and ease customer experience while ensuring that financial institutions adhere to anti-money laundering regulations.