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ARTICLE · 07 MAY 2020

Is RBI Simplifying The KYC Procedure?

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Every entity ("Regulated Entity" or "RE") regulated by the Reserve Bank of India ("RBI") is required to conduct customer due diligence ("CDD") on individuals...

IndiaFinance and Banking
Kavya Katherine Thayil
Kavya Katherine Thayil
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Is RBI simplifying the KYC procedure?

Every entity ("Regulated Entity" or "RE") regulated by the Reserve Bank of India ("RBI") is required to conduct customer due diligence ("CDD") on individuals (i) while establishing an account-based relationship; or (ii) while dealing with a beneficial owner, an authorized signatory, or a power of attorney holder related to any legal entity. For this purpose, an RE must adhere to the guidelines as provided by RBI under the Know Your Customer (KYC) Directions, 2016 ("KYC Directions") as amended from time to time.

In January 2020, with a view to use of digital channels for the customer identification process ("CIP") by REs, RBI amended the KYC Directions, amongst other things, to also allow 'Video-based Customer Identification Process' ("V-CIP"). The V-CIP is a consent-based alternate method of establishing the customer's identity for customer onboarding. In fact, RBI's recent amendments to the KYC Directions indicates its

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