The RBI is running numerous programs to halt frauds that are occurring both offline and online. In order to further enhance the Know Your Customer (KYC) system, another initiative has been launched by RBI. Banks and non-banking financing organizations are periodically required to use the KYC system under this new effort.
The ‘Master’ criteria for KYC have been modified by the Central Bank following review.
As a result, banks, non-banking financial firms (NBFC), and other organizations under the control of the RBI will need to conduct customer due diligence in accordance with the guidelines. FATF has updated these recommendations. Let us explain that the government’s new guidelines regarding the Anti-Money Laundering Rules, the Unlawful Activities (Prevention) Act (UAPA), and the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act were the catalyst for this RBI amendment. According to the Reserve Bank, some instructions have also been revised to reflect FATF’s recommendations.
RBI has released new guidelines.
It was stated in the master instructions released by the RBI that the risk-based system had been updated to allow for recurring KYC updates. According to this, the units coming under the Central Bank’s control will need to develop a risk-based mechanism for routine KYC updates. must make sure that data gathered during customer investigations is kept, particularly in cases where the risk is severe.
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