1. Home
  2.  |  
  3. Economy Current Affairs  |  

RBI relaxed KYC rules for Non-Banking Financial Companies

Jan 3, 2015 12:12 IST

Know-Your-Customers (KYC) rules for Non-Banking Financial Companies (NBFCs) were relaxed by the Reserve Bank of India (RBI) on 2 January 2015.

The KYC rules were amended for NBFC’s due to practical difficulties and constraints being faced by them in getting KYC documents at frequent intervals.

As per RBI notification, the KYC exercise will be required to be done in three ways and they are
• For high-risk individuals and entities – in at least every 2 years
• For medium risk individuals and entities - in at least every 8 years
• For low risk individuals and entities – in at least every 10 years

These time limits will be adjusted by taking into account whether and when client due diligence measures have previously been undertaken and the adequacy of data were obtained. However, physical presence of clients may not be insisted at such periodic updations.

Previous norms said that the NBFC’s should undertake KYC once in every 5 years for low risk category customers and once in two years for both high and medium risk categories.


Is this article important for exams ? Yes92 People Agreed

Register to get FREE updates

    All Fields Mandatory
  • (Ex:9123456789)
  • Please Select Your Interest
  • Please specify

  • ajax-loader
  • A verifcation code has been sent to
    your mobile number

    Please enter the verification code below

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK