What changed
The Reserve Bank of India has amended its Know Your Customer directions to clarify the responsibility of entities uploading and downloading customer records from the Central KYC Records Registry. The amendment inserts an explanation in paragraph 64, specifying that the entity that last uploaded or updated a customer's KYC records is responsible for verifying the customer's identity and/or address. Accordingly, any bank downloading and relying on such records from the CKYCR shall not be required to re-verify the authenticity of the customer's identity and/or address, provided the KYC records downloaded from CKYCR are current and compliant with the PML Act, 2002 / PML Rules, 2005. The bank downloading and relying on KYC records downloaded from the CKYCR shall remain responsible for all aspects of CDD procedure and provisions of these Directions, except verification of identity and/or address of the customer.
What it means for you
The amendment aims to streamline the KYC process and reduce duplication of efforts. It also clarifies the responsibilities of banks and other entities in verifying customer identities and addresses.
What you must do
- Review the amended KYC directions
- Update internal processes for KYC record verification
- Ensure compliance with the PML Act and Rules
Who it affects
Local area banks, Other regulated entities
What is the purpose of the amendment?
The amendment aims to clarify the responsibility of entities uploading and downloading customer records from the Central KYC Records Registry.
Who is responsible for verifying customer identities and addresses?
The entity that last uploaded or updated a customer's KYC records is responsible for verifying the customer's identity and/or address.