Banks Directed to Upload KYC with Central Registry from Jan 1 (Download PDF)

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Reserve Bank directed all banks to upload the Know Your Customer (KYC) data pertaining. To new individual accounts opened after January 1, with Central KYC Records Registry. It has been decided to allow One Time Pin (OTP) based e-KYC subject to certain restrictions.

E-KYC and the Central KYC Registry

E-KYC and the Central KYC Registry

E-KYC and the Central KYC Registry

Highlights

  • All Scheduled Commercial Banks (SCBs) are required to upload the KYC data of all new individual accounts.
  • Banks allowed time upto February 1 for uploading date in respect of accounts opened during January 2017.
  • Under Foreign Account Tax Compliance Act (FATCA) and Common Standard on Reporting (CRS), regulated entities should adhere to the provisions of Income Tax Rules and determine whether they are a reporting financial institution as defined in Income Tax Rule.

About KYC

  • Know your customer (KYC) is the process of a business identifying and verifying the identity of its clients.
  • Used to refer to the bank regulation which governs these activities
  • Processes are also employed by companies of all sizes for ensuring their proposed agents, consultants, or distributors.

Standards

The objective of KYC guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering activities.

Comprehensive KYC includes:

  • Customer Policy
  • Customer Identification Procedures
  • Monitoring of Transactions
  • Risk management
Image of Comprehensive KYC

Image of Comprehensive KYC

Image of Comprehensive KYC

Features Of Central KYC Registry (CKYCR)

  • Single KYC for all your financial transactions.
  • The list goes beyond Aadhaar and PAN.
  • Three types of accounts specified, have to select which is applicable to you.

    • One is Normal
    • Second is Simplified or for low-risk customers
    • Third is Small investor.
  • Conditions for SMALL account type of investor

    • Credits in a financial year does not exceed rupees one lakh
    • Withdrawals and transfers in a month does not exceed rupees ten thousand
    • The balance at any point of time does not exceed rupees fifty thousand
  • The simplified or low-risk customer’s: customers who are not able to submit anyone among 6 documents listed. They are Passport, driving license, PAN card, Voter ID, job card issued by NREGA or Aadhaar Card.
  • If not in above two categories of investors like SMALL or SIMPLIFIED, then mention it as NORMAL customers.
  • Related persons like a guardian of minor, assignee or authorized representative can add KYC details in the same single form.
  • More than one Correspondence or local address can be updated in Annexure A1.
  • Details of more than one related person can be updated in Annexure B1.

- Published/Last Modified on: December 10, 2016

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