What changed
The relaxation provided in the May 5, 2021 circular on periodic KYC updation restrictions has been extended. The new deadline for compliance is now March 31, 2022, instead of the earlier date.
What it means for you
Banks and regulated entities must continue to hold off on restricting account operations for customers who haven't completed periodic KYC updates. This gives customers more time to comply without facing service disruptions, reducing operational friction during the pandemic.
What you must do
- Update internal systems to reflect the extended deadline of March 31, 2022 for KYC updation.
- Communicate the extension to branch staff and customer-facing teams to avoid premature restrictions.
- Continue to remind customers to complete KYC updates, but do not enforce account operation restrictions until after the new deadline.
- Monitor RBI circulars for any further extensions or changes.
Who it affects
All regulated entities (banks, NBFCs, payment banks, etc.), Customers with pending periodic KYC updates
What is the new deadline for KYC updation without restrictions?
The relaxation on account operation restrictions for non-compliance with periodic KYC updation is extended until March 31, 2022.
Does this circular apply to all types of accounts?
Yes, it applies to all regulated entities and their customers, as per the earlier circular dated May 5, 2021.