The Reserve Bank of India (“RBI”) in a Notification dated 18th December, 2020 announced the amendments to the Master Direction – Know Your Customer (KYC) Direction, 2016
Since the Centralized KYC Registry (CKYCR) is now fully operational for individual customers, the RBI has decided to extend the CKYCR to Legal Entities (“LEs”).The relevant templates in this regard are attached to the circular as Annex “A” and Annex “B”.
Key Highlights
• Regulated Entities (“Res”) must upload the KYC data pertaining to accounts of LEs opened on or after April 1, 2021, on to CKYCR in terms of Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 (“PML Rules”). In addition to this, REs must also ensure that in case of accounts of LEs opened prior to April 1, 2021, the KYC records are uploaded on to CKYCR during the process of periodic updation or earlier when the updated KYC information is obtained / received from the customer in certain cases. REs must ensure that during periodic updation, the customers’ KYC details are migrated to current Customer Due Diligence (CDD) standards.
• In order to ensure that all existing records of KYC of individual customers are uploaded on CKYCR, REs must upload the KYC data pertaining to accounts of individuals opened prior to January 01, 2017, at the time of periodic updation or earlier when the updated KYC information is obtained/received from the customer in certain cases. During periodic updation, REs must ensure that the customers’ KYC details are migrated to current CDD standard.
• However, when a customer submits a KYC identifier to a RE for the purpose of establishing an account-based relationship with consent to download records from CKYCR, then such RE must retrieve the KYC records online from CKYCR using the KYC Identifier and the customer will not be required to submit the same KYC records or information or any other additional identification documents or details, unless –
1. there is a change in the information of the customer as existing in the records of CKYCR;
2. the current address of the customer is required to be verified;
3. the RE considers it necessary in order to verify the identity or address of the customer, or to perform enhanced due diligence or to build an appropriate risk profile of the client.
• Once KYC Identifier is generated by CKYCR, the REs must ensure that the same is communicated to the individual / legal entity.
In line with this notification, the clause 57 of the Master Direction – Know Your Customer (KYC) Direction, 2016 has been revised.
Source : Reserve Bank of India
