What changed
- RBI has issued new guidelines for KYC compliance for Authorised Persons regulated by the Department of Regulation and those not regulated by it.
- The guidelines supersede the Master Direction – Know Your Customer (KYC) Direction, 2016.
- Authorised Persons regulated by the Department of Regulation will be governed by respective 'Know Your Customer' directions applicable to them.
What it means for you
- Banks and lenders must ensure compliance with the new guidelines to avoid any penalties or fines.
- The guidelines aim to strengthen KYC norms and prevent money laundering and terrorist financing activities.
- Authorised Persons must ensure that their agents, sub-agents, and franchisees comply with the guidelines.
What you must do
- Review and update KYC procedures to ensure compliance with the new guidelines.
- Train staff on the new guidelines and ensure they understand their responsibilities.
- Conduct regular audits to ensure compliance with the guidelines.
Who it affects
Authorised Persons regulated by the Department of Regulation, Authorised Persons not regulated by the Department of Regulation, Agents, sub-agents, and franchisees of Authorised Persons
What are the consequences of non-compliance with the new guidelines?
The circular does not specify penalties or fines for non-compliance; Authorised Persons must ensure compliance by their agents/sub-agents/franchisees.