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Matthew banks freeze4/16/2023 ![]() ![]() ![]() RTI Query and formal response from RBI RTI Queries Keeping in view the current COVID-19-related restrictions in various parts of the country, REs are advised that in respect of the customer accounts where periodic updation of KYC is due and pending as of date, no restrictions on operations of such account shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of law, the etc." "in terms of which Regulated Entities (REs) have to carry out periodic updating of KYC of existing customers. Circulars issued during the 'COVID-19' read something along these lines: However, it has been responding differently through its circulars issued during the COVID-19 times. RTI query, RBI responded clearly (text below). The directions issued then did not refer to a partial freeze (Debit/ Credit or total) on account due to the pendency of periodic 'Re-KYC' or 'KYC review'. It spoke about the introduction of 'partial freezing' on KYC non-compliant accounts by the customers despite repeated reminders by banks. ![]() I wonder, why not RBI stop misdirecting and also correct the banks on the subject of freezing SB/CD/FD accounts (where a review of KYC is pending Re-KYC is due) and direct the Integrated Ombudsman to take up the complaint cases, guide customers correctly?įourth Bi-Monthly Monetary Policy Statement, 2014-15, announced on Septem(Points 31 and 32) dealt with easing norms to be followed during periodic KYC updation. What is stated in the write-up is a detailed current status with appropriate commentary. RBI has formally confirmed that the directions it had given in Sept 2014 were applicable before the amendment on 20th April 2018. Neither RBI on its own can direct, a partial or total freeze of Re-KYC due (non-compliant) bank account nor it can delegate such authority to any bank/branch to impose such a freeze. ![]()
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