RBI Amendment to Master Direction on KYC

RBI Amendment to Master Direction on KYC

·       Overview

Reserve Bank of India vide Circular No. RBI/2019-20/207, DOR. AML. BC. No. 61/14.01.001/2019-20 dated 01st April, 2020 has published Amendment to Master Direction (MD) on KYC.

·         Government of India, vide Gazette Notification G.S.R. 228(E) dated March 31, 2020 has notified amendment to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.

·         Consequent to the aforementioned amendment to the PML Rules, Master Direction on KYC dated February 25, 2016 has been updated as under:

Clause (g) has been inserted in the conditions stipulated for Small Accounts in Section 23 of the MD. Clause (g) reads as,

“Notwithstanding anything contained in clauses (e) and (f) above, the small account shall remain operational between April 1, 2020 and June 30, 2020 and such other periods as may be notified by the Central Government.”

Applicability : shall come into force with immediate effect.

Link: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11857&Mode=0

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