RBI UPDATE
Reserve Bank of India has made amendment in Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016 whereby the existing Section 57 of the Master Direction has been modified as follows:
57. CDD Procedure and sharing KYC information with Central KYC Records Registry (CKYCR)
REs shall capture the KYC information for sharing with the CKYCR in the manner mentioned in the Rules, as required by the revised KYC templates prepared for ‘individuals’ and ‘Legal Entities’ as the case may be. Government of India has authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), to act as, and to perform the functions of the CKYCR vide Gazette Notification No. S.O. 3183(E) dated November 26, 2015.
The ‘live run’ of the CKYCR would start with effect from July 15, 2016 in phased manner beginning with new ‘individual accounts’. Accordingly, REs shall take the following steps:
In the first phase, Scheduled Commercial Banks (SCBs) may upload the KYC data with CERSAI, in respect of new individual accounts opened on or after July 15, 2016.
REs other than SCBs may also participate in the live run of CKYCR from July 15, 2016.
Those REs which are not yet ready to join CKYCR process immediately, shall take steps to prepare their systems for uploading the KYC data in respect of new individual accounts so that the same is complete as soon as possible in a time bound manner.
REs shall prepare a plan for uploading the data in respect of existing individual accounts and include the same in their KYC Policy.
Operational Guidelines (version 1.1) for uploading the KYC data have been released by CERSAI. Further, ‘Test Environment’ has also been made available by CERSAI for the use of REs.
