RBI’s new KYC guidelines to ease compliance – OXBIG NEWS NETWORK-OxBig News Network

MUMBAI: The RBI has proposed modifications to its grasp route on ‘know your buyer’ norms-rules geared toward stopping cash laundering-that will ease compliance for hundreds of thousands of financial institution clients, significantly low-risk people and beneficiaries of govt schemes. The draft round outlines relaxed procedures for periodic KYC updates, responding to issues over delays and buyer complaints.The proposed guidelines mark a shift from inflexible timelines in direction of a extra versatile system whereas sustaining safeguards towards cash laundering and terrorist financing. For low-risk clients, the RBI prolonged the KYC replace deadline to at least one 12 months from the due date or till June 30, 2026, whichever is later. During this era, transactions will proceed, although the accounts will stay below common monitoring. This transfer brings reduction as earlier banks froze accounts that didn’t adjust to re-KYC necessities. To handle giant backlogs and enhance customer support, the RBI directed banks to enhance communication. Before the due date, regulated entities should ship no less than three alerts, together with one by letter.After the due date, one other three reminders are required, once more with no less than one letter.