MUMBAI: In a major relief to bank accountholders, the Reserve Bank has empowered banking correspondents (BCs) to update the KYC details in one’s bank account.
The central bank on Thursday issued relaxed guidelines regarding KYC updation by allowing banking correspondents who include NGOs, SHGs, MFIs and even local kirana shop owners.
Customers can submit self-declarations through BCs. Banks must give three advance intimation for KYC updates with a view to ease KYC updation and reducing service delays.
The changes come after the Reserve Bank has amended two processes related to know your customer (KYC) norms for ease and convenience of banking customers.
In a notification, it said now BCs are permitted to conduct updation or periodic KYC updation. Similarly the RBI also said that banks have to give at least three advance intimations including at least one intimation by letter, to customers for complying with the periodic KYC updation process.
Banks have been engaging banking correspondents who include NGOs, self-help groups (SHGs), micro finance institutions (MFIs) and other civil society organisations (CSOs) to act as their agents. Now even your corner shop owner is also empannelled as a BC, if he has got the necessary permission from the bank.
“Self-declaration from the customer in case of no change in KYC information or change only in the address details may be obtained through an authorised BC. The bank shall enable its BC systems for recording these self-declarations and supporting documents thereof in electronic form in the bank’s systems. The bank shall obtain the self-declaration including the supporting documents, if required, in the electronic mode from the customer through the BC, after successful biometric based e-KYC authentication,” the RBI said.
Until an option is made available in the electronic mode, such declaration may be submitted in physical form by the customer. The BC shall authenticate the self-declaration and supporting documents submitted in person by the customer, and promptly forward the same to the concerned bank branch.
The BC shall provide the customer an acknowledgment of receipt of such declaration /submission of documents. The bank shall update the customer’s KYC records and intimate the customer once the records get updated in the system, as required under paragraph 38(c) of the Master Direction ibid.
It is, however, reiterated that the ultimate responsibility for periodic updation of KYC remains with the bank concerned.
The Reserve Bank has observed a large pendency in periodic updation of KYC including in the accounts opened for credit of direct benefit transfers/electronic benefit transfers under government schemes to facilitate credit of DBTs and/or scholarship amount for scholarship beneficiaries) and accounts opened under PMJDY,” the notification sadi.