RBI makes changes to KYC norms to align it with money laundering rules

The Reserve Bank of India (RBI) has updated its Know Your Customer (KYC) norms to align with recent amendments in the Prevention of Money Laundering (Maintenance of Records) Rules. The changes aim to simplify the KYC process while enhancing anti-money laundering measures. Regulated entities must now apply customer due diligence (CDD) at the unique customer identification code (UCIC) level, eliminating the need for fresh CDD when existing customers open new accounts or avail new services. The amendments also require regulated entities to update KYC information with the Central KYC Records Registry (CKYCR) within seven days of obtaining additional or updated information from customers. These updates are intended to streamline the KYC process, reduce redundancy, and improve the efficiency of anti-money laundering efforts. The revised provisions in the Master Direction have come into force immediately, reflecting the RBI’s commitment to maintaining robust regulatory standards.