Banks KYC: RBI extends deadline for periodic KYC update by three months

Reserve Bank of India on Thursday extended the deadline for periodic KYC (know-your-customer) update in banks by three months till March 31, 2022. The extension has been granted in view of prevalent uncertainty due to a new variant of covid-19, it said.

In May, amid the second wave of COVID-19 in the country and its induced restrictions in various states, the Reserve Bank of India (RBI) had directed banks and other regulated financial entities to not impose any punitive action against customers for failure to update KYC till the end of the year.

As part of the announcement, the central bank had decided to extend the scope of the video KYC or V-CIP (video-based customer identification process) for the new categories of customers such as proprietorship firms, authorised signatories, as well as beneficial owners of legal entities.