RBI Proposes New Rule for KYC Update to Prevent Money Laundering
The Reserve Bank of India (RBI) has suggested some changes in its Master Direction on ‘Know Your Customer‘ (KYC) norms to control money laundering and make things easier for many bank customers, especially low-risk individuals and beneficiaries of government schemes.
The draft circular explains the steps for periodic KYC updates, to fix the issues related to delays and address complaints from customers. These proposed changes aim to move from strict deadlines to a more flexible system, while preventing money laundering and terrorism funding.