MUMBAI, Dec 9: Reserve Bank of India (RBI) has amended the know-your-customer (KYC) rules to allow banks to open new accounts using one-time passwords (OTPs) on mobile phones subject to certain restriction.
Reserve Bank has also directed all banks to upload the Know Your Customer (KYC) data pertaining to new individual accounts opened after January 1, with Central KYC Records Registry. “All Scheduled Commercial Banks (SCBs) are required to invariably upload the KYC data pertaining to all new individual accounts opened on or after January 1, 2017, with Central KYC Records Registry,” RBI notification said. All banks are, however, allowed time upto February 1 for uploading date in respect of accounts opened during January 2017, it said. Regulated entities (RE) other than banks are to upload the KYC data pertaining to all new individual accounts opened on or after from April 1, with Central KYC Registry. For OTP, it said, restriction would include specific consent from the customer for authentication and the aggregate balance of all the deposit accounts of the customer should not exceed Rs 1 lakh. Besides, the aggregate of all credits in a financial year, in all the deposit taken together, should not exceed Rs two lakh. In case of loan accounts, only term loans can be sanctioned using electronic KYC and the aggregate amount of term loans sanctioned shall not exceed Rs 60,000 in a year. Banks have to however do a due diligence on these customers within a year of opening these accounts failing which these will be closed, RBI said. “A declaration shall be obtained from the customer to the effect that no other account has been opened nor will be opened using OTP based KYC either with the same regulated entity or with another regulated entity (banks). “Banks should invariably upload the KYC data pertaining to all new individual accounts opened on or after January 1, 2017 with CERSAI in terms of the provisions of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005,” it said. Under Foreign Account Tax Compliance Act (FATCA) and Common Standard on Reporting (CRS), regulated entities should adhere to the provisions of Income Tax Rules and determine whether they are a reporting financial institution as defined in Income Tax Rule. (AGENCIES)
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