Taking a big decision, the Reserve Bank of India (RBI) has now approved changes in KYC rules to open bank accounts. Now, under the new rules, banks can also do KYC video of customers.
The Reserve Bank of India, amidst the second wave of Corona, addressed the media after a sudden press conference. While giving relief to small traders, RBI has also taken a big decision for the general public. Taking a big decision, the RBI has now approved changes in the KYC rules to open bank accounts. Under the new rules, RBI has allowed the use of Limited KYC till 1 December 2021. Now banks can also do KYC video of the customers.
Reserve Bank of India Governor Shaktikanta Das said that in view of the corona, some changes have been made in the KYC rules in the current situation. Das also said that relief has also been given in the Overdraft Facility for the states. On the issue of lockdown in the country, RBI said that lockdown and other COVID-induced restrictions have been imposed in many states to prevent the second wave of COVID-19 epidemic, which is expected to hurt the economy.
Face to face mode will not be required
After the new rule, face-to-face mode will no longer be required for KYC. Now Aadhaar will be certified through e-KYC. Under the new rules, KYC will be expanded into a video-based customer identification process (V-CIP). This change will benefit the common people as well as proprietorship firms, authorized signatories and owners of legal entities.
Why KYC is important
Actually, under KYC, the bank takes information about the identity of its customers. Whenever a customer goes to open a bank account, he has to give information about his identity. So that banking services can not be misused. For high risk customers, it has to be updated every two years. At the same time, in medium risk, it is updated in 8 years. Whereas in the low risk category, it has to be updated in 10 years.
What will be the benefit of video KYC
Actually, RBI has cleared the difficulties of people in the Corona era by approving the video KYC. Through video KYC, any customer can get KYC done to open their account at home. One of the major advantages of video KYC is that it does not require physical documents, so it is considered more secure. This will reduce the mess of the bank as well and the common people will not have to go round the bank. To avoid these troubles, the Reserve Bank of India has approved the video KYC. This decision of the central bank will provide a big relief to the general public in opening the account.
