New Delhi: The Reserve Bank of India (RBI) has extended the deadline for periodic updating of KYC (Know Your Customer) by 3 months to March 31, 2022.
The earlier deadline for this was December 31.
In a notification on its website, the central bank said, “In view of the prevailing uncertainty due to the new version of COVID-19, the relaxations given in the circular (related to periodic updating of KYC restrictions on account operations for non- Ongoing compliance) is hereby extended up to March 31, 2022.”
In May, the RBI had advised regulated entities not to impose punitive restrictions on operations of customers’ accounts for failure to comply with KYC update norms by the end of December.
The RBI in 2016 directed regulated entities to follow certain customer identification procedures in terms of the provisions of the Prevention of Money Laundering Act, 2002 and the Prevention of Money Laundering (Maintenance of Records) Rules, 2005.
No account shall be opened anonymously or under fictitious or benami name as per instructions. No account will be opened if any Regulated Entity is unable to implement appropriate Customer Due diligence (CDD) measures due to customer non-cooperation or unreliability of documents/information submitted by the customer.
Meanwhile, the Reserve Bank of India (RBI) in its Financial Stability Report (FSR) stated that private cryptocurrencies pose an immediate risk to the safety of customers and anti-money laundering, and combating terrorism financing as digital currencies are highly volatile because of their highly speculative nature.
According to the report, “They are also prone to fraud and extreme price volatility given their highly speculative nature. Long-term concerns are related to capital flow management, financial and macro-economic stability, monetary policy transmission and currency substitution.
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