By using a KYC Identifier from the CKYCR, REs minimize the need for customers to repeatedly submit sensitive documents
FinTech BizNews Service
Mumbai, 7 November, 2024: Yesterday RBI has issued circular on "Amendment to the Master Direction - Know Your Customer (KYC) Direction, 2016. Ankit Ratan, Co-founder & CEO, Signzy, shares interesting insights on this development: "The RBI's recent amendments to the Master Direction on KYC guidelines aim to establish a more dynamic and secure framework for regulated entities (REs). These updates will streamline the onboarding process, reducing time and enhancing REs' ability to manage risks effectively. By allowing REs to use existing customer due diligence (CDD) data when customers access new financial services, the guidelines help prevent errors that may occur with repeated data entry. Introducing “periodic updation” emphasizes the importance of regularly updating KYC details, which will help in keeping customer information accurate and minimizing fraud risks linked to outdated data. This improves the quality of background checks and risk assessments.
Additionally, by using a KYC Identifier from the CKYCR, REs minimize the need for customers to repeatedly submit sensitive documents, thereby lowering the risk of document theft or fraud. Compliance with these guidelines not only helps REs meet regulatory standards and avoid penalties but also strengthens digital trust."
