KYC Norms

Finance Minister Nirmala Sitharaman urges Sebi to simplify KYC, adopt anticipatory regulation, strengthen cybersecurity safeguards, and deepen bond markets to support long-term growth

BCAS flags rising delays, restrictive norms and ambiguities in Sebi's RA registration process, seeking clarity on migration, principal officer rules and eligibility for investor training entities

Sebi has also proposed standardising income slabs and allowing KRAs to tag independently verified supplementary information, improving the reliability and usability of KYC records

Fraud risks and mule accounts are pushing banks beyond Aadhaar-based eKYC

A simple 'Buy now, pay later' click can trigger a full loan without consent. Weak verification, no alerts, and instant disbursals are fuelling identity fraud in India's digital lending ecosystem

Experts believe the tie-up could help resolve long-standing bottlenecks in KYC compliance, particularly in underserved regions

UIDAI to revamp offline Aadhaar KYC to boost adoption; users will not need to share Aadhaar number or use OTPs, making the process more secure, private, and easier for fintech firms to adopt

UIDAI introduces real-time document verification and cross-database checks to reduce misuse and prevent fake Aadhaar issuances

Depositors can open and manage recurring deposit and public provident fund accounts using Aadhaar biometrics

Allows Business Correspondents to assist in KYC updation, reactivation of inoperative accounts under extended compliance timeline

Markets regulator Sebi on Tuesday said it has developed an 'investor charter' for KRAs detailing the services provided to investors along with their rights and grievance redressal mechanism. Additionally, the investor charter would provide details about activities of KRAs as well as dos and don'ts for investors. This charter is aimed at facilitating investor awareness about various activities where an investor/client has to deal with KYC (Know Your Client) Registration Agencies (KRAs) for availing investor service requests. In its circular, Sebi asked registered KRAs to bring the investor charter to the notice of existing and new investors by putting it on their websites and displaying it at prominent places in offices. With regard to services provided by KRAs to investors, Sebi said a KRA facilitates registration and modification of KYC records of investors in the securities market through registered-intermediaries, ensuring verification and validation of the investor's identity.

Markets regulator Sebi is actively working with the Ministry of Finance and other financial regulators on setting up a centralised KYC (Know Your Customer) system, chairman Tuhin Kanta Pandey has said. The Central KYC is an online database that maintains KYC records of customers in a centralised manner, aiming to streamline compliance across financial institutions. When asked about the common KYC system, Pandey told PTI, "Yes, I think we will move forward on that also. We're really trying to have a system which will be very, very effective." He added that the finance secretary is chairing the committee responsible for this initiative, and efforts are underway to expedite the process. While no definitive timeline was shared, Pandey expressed optimism, saying, "It should be done quite early." To illustrate the effectiveness of current systems, he cited the robust KRA (KYC Registration Agency) system. "This system is right now very effective where you do one KYC and then, everywhere

The Supreme Court says digital access is a fundamental right under Article 21; issues 20 directions to make KYC accessible for visually impaired persons and acid attack survivors

63% of respondents indicated that issues related to KYC, dormant accounts, or malfunctioning login credentials prevent them from accessing one or more of their bank accounts online.

The revamped Central KYC aims to simplify and standardise KYC procedures across the financial sector, ensuring greater security and efficiency

The violations were found after a thematic inspection by the regulator during April 2022 and June 2023

Business Standard BFSI Insight Summit 2024: Industry leaders discuss KYC, anti-fraud tech, and user education as essential defences against rising digital financial crime

The Reserve Bank on Wednesday made changes to the Know Your Customer (KCC) norms to align them with recent amendments carried out in the Prevention of Money Laundering (Maintenance of Records) Rules and revised certain existing instructions. According to the Amendment to the Master Direction - Know Your Customer (KYC) Direction, 2016, regulated entities (REs) will have to apply the customer due diligence (CDD) procedure at the unique customer identification code (UCIC) level. "Thus, if an existing KYC-compliant customer of a RE desires to open another account or avail any other product or service from the same RE, there shall be no need for a fresh CDD exercise as far as identification of the customer is concerned," it said. The amended provisions in the Master Direction have come into force with immediate effect, said the circular issued by the Reserve Bank of India (RBI) in this regard. Amendments have also been made regarding CDD Procedure and sharing KYC information with the ..

FASTag accounts that are five years old or older must be replaced from August 1

Earlier, once annual KYC was filed, mobile numbers and email IDs could not be updated till April the next year