The Reserve Bank of India (RBI) on November 06, 2024, issued an amendment to the Master Direction - Know Your Customer (KYC) Direction, 2016.
The following amendments have been stated:
• Paragraph 10(f) of the Master Direction is amended to read as follows:
REs shall apply the CDD procedure at the UCIC level. Thus, if an existing KYC compliant customer of a 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.
• In Paragraph 37:
The ‘Explanation’ that “High risk accounts have to be subjected to more intensified monitoring” is applicable to sub-paragraphs (a) and (b) of paragraph 37 and accordingly, the ‘Explanation’ has been shifted.
• In Paragraph 38 - Updation/ Periodic Updation of KYC
To provide better clarity, the phrase ‘updation’ has been inserted with the phrase ‘periodic updation’ in the clauses (ii) and (iv) of sub-paragraph (a); and clauses (iii) and (iv) of sub-paragraph (c) of paragraph 38.
The amended provisions in the Master Direction shall come into force with immediate effect.
[Circular No. RBI/2024-2025/87 DOR.AML.REC. 49 /14.01.001/2024-25]
