India’s Central Banking Institution, The Reserve Bank of India has relaxed the Know Your Customer (KYC) norms for existing clients of Non-Banking Finance Companies (NBFCs) based on risk their profile. The rules have been eased due to practical difficulties and constraints in getting KYC documents at frequent intervals.
According to the new norms, the full KYC exercise will be done at least,
Every 10 Years for – Low risk individuals and entities (Previously 5 years)
Every 8 Years for – Medium risk individuals and entities (Previously 2 Years)
Every 2 Years for – High risk individuals and entities. (Previously 2 years)
Physical presence of the clients may not be insisted upon at the time of such periodic updations. However, fresh photographs will be required to be obtained from minor customer on becoming major.