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Omicron Effect: RBI extends KYC update deadline till March 31, 2022, now bank account will not be closed

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Omicron Effect: RBI extends KYC update deadline till March 31, 2022, now bank account will not be closed

The RBI has taken this step in view of the uncertainties regarding the new variant of coronavirus, Omicron.

The Reserve Bank of India (RBI) has extended the deadline for regular KYC updates for banks and other de-regulated institutions till March 31, 2022. Along with this, RBI has also advised financial institutions not to take any action regarding updating KYC against customers till the end of the current financial year 2021-22. step has been taken.

The RBI said on Thursday, “In view of the uncertainty regarding the new variant Omicron of Kovid-19, the period of the circular issued in May to 31 March on the restrictions on regular KYC updating and non-compliance on transactions from the respective account.” , being extended till 2022.

Earlier the deadline was December 31

Earlier, the RBI had extended the last date for updating KYC for de-regulated entities till the end of December in view of the second wave of COVID-19 pandemic. RBI had in May prohibited any action against customers till December-end for non-compliance with the KYC updating norms.

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What is KYC

KYC is required not only in banks but in all services related to financial transactions and essential services. Banks are advised to update KYC once in 10 years for low risk accounts, while high risk account holders are asked to get KYC done every two years. KYC update is also required to reactivate inactive bank accounts.

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