RBI amends the Master Direction on Know Your Customer (KYC) under the Prevention of Money-laundering (Maintenance of Records) Rules, 2005

Apr 06, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Reserve Bank of India (RBI) on April 01, 2020, amends the Master direction on Know Your Customer (KYC) Direction, 2016, issued on February 25, 2016, under the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.

The amendments are made under Section 23 which states that an individual who desires to open a bank account, banks shall open a ‘Small Account’, where the aggregate of all credits in a financial year does not exceed Rs. 1 lakh; all withdrawals and transfers in a month does not exceed Rs. 10,000/-; and the balance at any point of time does not exceed Rs 50,000/-. The account shall remain operational initially for a period of 12 months and the entire relaxation provisions shall be reviewed after 24 months.

Whereas, RBI has decided that the small account shall remain operational between April 01, 2020 and June 30, 2020 and such other periods as may be notified by the Central Government.

This Notification shall come into effect immediately.

[Notification No. RBI/2019-20/207 DOR.AML.BC.No.61/14.01.001/2019-20]


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