RBI Relaxes KYC rules for Non-Banking Financial Companues

Mumbai ,  Jan 3

The Reserve Bank of India, RBI, has relaxed Know-Your-Customers – KYC
rules for Non-Banking Financial Companies – NBFCs. In a notification
issued from Mumbai Friday, RBI said that the rules have been eased due
to practical difficulties and constraints in getting KYC documents at
frequent intervals.

RBI has said that the full KYC exercise will be required to be done at
least every 2 years for high-risk individuals and entities. It added
that full KYC exercise would be required to be done at least every 10
years for low risk and at least every 8 years for medium risk
individuals and entities.

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