CURRENT AFFAIRS

Detailed explanation-1: -UPSC Mains. Q. What is the deadline for KYC updation for bank accounts, as per the recent notification of RBI? Notes: The Reserve Bank of India (RBI) has extended the last date for KYC updation for bank accounts by three months to March 31 next year.

Detailed explanation-2: -Time intervals for periodic updation of KYC is 2, 8 and 10 years for existing high, medium and low risk customers respectively.

Detailed explanation-3: -A new KYC process is needed if KYC documents available in bank records do not conform to the present list of officially valid documents-passport, driving licence, proof of the possession of an Aadhaar number, voter’s identity card, NREGA job card and letter issued by the National Population Register.

Detailed explanation-4: -It is mandatory for bank customers to do periodic updation of Know Your Customer (KYC) details. Banks may ask customers for re-KYC to keep their records updated. The Reserve Bank of India (RBI) has simplified the periodic updation of the KYC (re-KYC) process.

Detailed explanation-5: -The process for the periodic updation of KYC (re-KYC) was simplified in May 2021 (Section 38 of RBI Master Direction on KYC). 2. As per the present guidelines, if there is no change in KYC information, a self-declaration to that effect from the individual customer is sufficient to complete the re-KYC process.