GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 2907
TO BE ANSWERED ON TUESDAY, 21st MARCH, 2022/ 30 Phalguna, 1943 (Saka)
Periodic Updation of Customer KYC
2907. SHRI A. GANESHAMURTHI:
Will the Minister of FINANCE be pleased to state:
a) whether the Reserve Bank of India (RBI) has extended the deadline for mandatory periodic updation of customer KYC by regulated entities;
b) if so, the details thereof and if not, the reasons therefor along with the details of KYC gathered, bank, area and State-wise; and
c) the number of customers whose accounts have been blocked for lack of KYC bank, area and State-wise along with such accounts revived after levying of penalty during the last five years?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(DR. BHAGWAT KARAD)
(a): No Sir, there has been no change in the time period for carrying out periodic updation of KYC of customers of Regulated Entities (REs).
(b) and (c): As per the guidelines of RBI, periodic updation is required to be carried out by REs at least once in every two years for high risk customers, once in every eight years for medium risk customers and once in every ten years for low risk customers from the date of opening of the account/last KYC updation. However, vide its Circular dated 05.05.2021, RBI had advised REs not to impose any restrictions till 31.12.2021 on the operations of accounts where periodic updation of KYC had become due and pending, on account of COVID-19 related restrictions in various parts of the country. This relaxation was further extended by RBI till 31.03.2022, vide its Circular dated 30.12.2021.
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