{"id":5120,"date":"2021-05-05T11:37:50","date_gmt":"2021-05-05T11:37:50","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=5120"},"modified":"2025-09-17T07:12:58","modified_gmt":"2025-09-17T12:42:58","slug":"rbi-governor-announces-changes-to-kyc-norms","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/rbi-governor-announces-changes-to-kyc-norms","title":{"rendered":"RBI Governor Announces Changes to KYC Norms; Emphasizes Video KYC"},"content":{"rendered":"

RBI Governor Releases Statement<\/strong><\/span><\/h2>\n

On May 5, 2021, the governor of the RBI, Shaktikanta Das released a statement looking back on the year 2020.\u00a0<\/span><\/p>\n

In his statement, the governor assessed the state of the Indian economy and announced several measures the RBI would take to ensure a full recovery and subsequent growth.\u00a0<\/span><\/p>\n

The statement covered a broad set of measures; from instituting a term liquid facility for emergency health services & announcing credit for MSMEs, to creating a resolution framework for COVID-related stressed assets & relaxing the overdraft facility for state governments.\u00a0<\/span><\/p>\n

One announcement that will have far-reaching implications for the financial sector is the governor\u2019s statement regarding the rationalisation of compliance to <\/span>KYC<\/strong><\/span><\/a> requirements.\u00a0<\/span><\/span><\/p>\n

The announcement essentially states that certain KYC norms will be updated, to enable digitization and to leverage digital channels for KYC, such as <\/span>V-CIP<\/strong><\/a>.<\/span><\/span><\/p>\n

\"RBI-Video-KYC\"<\/p>\n

How Will KYC Norms Change?<\/strong><\/span><\/h2>\n

In his <\/span>statement<\/b><\/a>, the governor addressed 4 key components of KYC compliance that will be \u201crationalised\u201d, i.e, altered to enable improvement.\u00a0<\/span><\/span><\/p>\n

These changes are being instituted by the RBI in order to enhance customer convenience and encourage remote KYC transactions.\u00a0<\/span><\/p>\n

Here are the 4 key components of current KYC norms that will be updated.\u00a0<\/span><\/p>\n

    \n
  1. The scope of Video KYC ( V-CIP for banks & NBFCs), will be extended to include new categories of customers such as proprietorship firms, authorised signatories, and beneficial owners of legal entities<\/span><\/li>\n
  2. Aadhaar eKYC accounts will be converted to full KYC accounts<\/span><\/li>\n
  3. The KYC identifier used by the Centralised KYC Registry (CKYCR) will be available for use in V-CIP & to submit OVDs electronically<\/span><\/li>\n
  4. Digital channels such as V-CIP will be introduced for transactions such as periodic KYC updations\u00a0<\/span><\/li>\n<\/ol>\n

    What Do These Changes Mean?<\/strong><\/span><\/h2>\n

    While the announcement lays a tenuous framework for updated KYC norms, the implications are not clear cut.\u00a0<\/span><\/p>\n

    The full implications of the governor\u2019s statement will only be clear once the amended master directions for KYC are publicly released. However, these are the key changes that we can expect to see.\u00a0<\/span><\/p>\n

    Here\u2019s what you should take away from the governor\u2019s statement regarding KYC norms.\u00a0<\/span><\/p>\n