New KYC Rule: RBI will simplify KYC rules, there will be no need to submit documents again and again for small changes

– Advertisement –

The Reserve Bank (RBI) has proposed a major change in the ‘Know Your Customer’ guidelines. This will benefit new customers as well as old customers who want to update their identification i.e.

– Advertisement –

make minor changes in it. Earlier, RBI had sought feedback from customers in this matter. This will make operations easier for financial institutions including banks and NBFCs. Customers will also benefit from this.

It will be easy to make minor updates

RBI is trying to make the process easier for customers. Once this proposal is implemented, it will be very easy for customers to make minor updates in KYC. For this, they will have to fill only one self-declaration form. In it, they will have to tell that the information related to their identity has changed. For example, if a customer wants to change his address, then he will have to fill a self-declaration form and tell that his address has changed. This declaration can be submitted through many digital channels. These include registered email, mobile number, ATM and online banking applications.

There is no need to submit the same document again and again

RBI’s new governor Sanjay Malhotra had stressed on eliminating the need to submit the same document repeatedly. He said in March, “We need to ensure that once a customer submits a document to a financial institution, he should not be forced to submit the same document again.” Experts say that the change in guidelines for updating KYC will benefit crores of customers.

KYC update can be done in any branch of the bank

The central bank is also increasing the options for updating KYC from time to time. This means that the customer will be able to update his KYC at any branch or office of the financial institution in which he has an account. Apart from this, Aadhaar’s OTP based KYC and video based customer identification process can also be used for small updates. This will make it very easy for the customer. In the new rule, if the current address of a customer is different from the address which is in the UIDAI database, then he will be allowed to use Aadhaar biometric e-KYC for face-to-face onboarding for self-declaration.

People with job transfers will get the facility

Experts say that nowadays people keep changing their addresses due to job or work. Correct address is necessary for many works. In such a situation, people have to face difficulties in changing the address. This problem will be solved by changing the rules of RBI.

– Advertisement –