Govt gives 15 more days to directors for KYC with reduced fee of Rs 500

Out of 3.3 mn active directors, only around 1.215 mn directors completed the KYC process by September 15

The government will give 15 days more to directors to comply with KYC requirements by paying a reduced fee of Rs 500, a senior official said Thursday.  

Nearly 2.1 million directors failed to submit the requisite details when the deadline set by the Corporate Affairs Ministry ended on September 15. 

The ministry has already started de-activating the Director Identification Numbers (DINs) of individuals who did not submit the KYC (Know Your Customer) details. 

DIN is a unique number allotted to individuals who are eligible to have directorship on the boards of registered companies.

Directors can comply with KYC requirements by paying a reduced fee of Rs 500 for 15 days starting from September 21, the official told PTI.

The de-activated DINs would be re-activated by paying the requisite fee. For the 15-day period, the fee amount has been reduced to Rs 500 from Rs 5,000.

After this deadline, the individuals submitting the KYC details would have to pay a fee of Rs 5,000, the official added.

In June, the ministry decided to carry out KYC process for all directors, including those who have been disqualified. The last date for complying with the new norms by way of submitting form 'DIR-3 KYC' without fee ended on September 15.

Out of 3.3 million active directors, only around 1.215 million directors completed the KYC process by September 15. Around 21 lakh individuals failed to ensure compliance, an official had said. 

As per a message on the website of the ministry on Thursday, the last date for filing form DIR-3 KYC without fee expired on September 15.

"The process of deactivating the non-compliant DINs is in progress and is likely to be completed by September 20, 2018," the message said.

The KYC exercise is part of larger efforts to curb illicit activities carried through corporate structures.