The Reserve Bank of India (RBI), in its latest circular, has said that customers are not required to visit a bank branch to update their 'know your customer' (KYC) details provided they have already provided appropriate documents. Instead, if there is no change in KYC information, they can submit a self-declaration through email-id, registered mobile number, ATMs, or any other digital channels.
The RBI said banks have been advised to provide facilities for such self-declaration to customers through various non-face-to-face channels. "Such as registered email-id, registered mobile number, ATMs, digital channels (such as online banking/internet banking, mobile application), letter, etc., without the need for a visit to a bank branch. Further, if there is only a change in address, customers can furnish revised/updated address through any of these channels after which, the bank would undertake verification of the declared address within two months."
The banking regulator said as the banks have been mandated to keep their records up-to-date and relevant by undertaking periodic reviews and updates to comply with the Prevention of Money Laundering Act, 2002 (PMLA).
The apex bank said a new KYC process is needed if the 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 Aadhaar number, voter's identity card, NREGA job card and letter issued by the National Population Register). It’s also needed in cases where the validity of the KYC document submitted earlier may have expired.
In such cases, the banks are required to provide an acknowledgement of the receipt of the KYC documents or self-declaration submitted by the customer.
Customers have both the options to carry out fresh KYC -- either by visiting a bank branch, or remotely through a video-based customer identification process, the RBI said.
"Individual customers of banks are encouraged to get more information on the different options available to them from their bank for (a) completing re-KYC or by completing fresh KYC by visiting a bank branch or remotely through V-CIP," the RBI said.
As part of the RBI's master direction on KYC, for the digital KYC process, banks or any other regulated entity must have an application for the digital KYC process, which will be made available at customer touch points for undertaking KYC. The app must have the feature that only live photograph of the customer is captured. No printed or video-graphed photograph is accepted.
All the entries in the CAF are then filled as per the documents and information furnished by the customer. Once the above-mentioned process is completed, a one-time password (OTP) message containing the text ‘Please verify the details filled in form before sharing OTP’ is sent to the customer’s own mobile number. Upon successful validation, it is treated as a customer signature on CAF. The authorised officer will provide a declaration about the capturing of the live photograph of the customer and the original document.