Periodic KYC update extended by RBI till 31st March amid Omicron spread

Periodic KYC update extended by RBI till 31st March amid Omicron spread

On Thursday (RBI), the Reserve Bank of India extended the deadline to enforce periodic Know Your Customer (KYC) updates in banks by three months, till 31st March 2022. The deadline was ending today.

In a notice, the central bank said that the decision had been taken because of the prevalent uncertainty of a new variant of Covid-19. The new variant Omicron has more than 900 cases in India.

In May, the RBI had stretched the periodic KYC deadline to 31st December and directed banks and other financial institutions not to place any restrictions on the operations of such accounts. The path we're given during the peak of the second wave of the coronavirus disease (Covid-19), led by the Delta variant.

In the latest edition of the (FSR) Financial Stability Report, released on Wednesday, the RBI said that inflation and Omicron pose significant challenges to the Indian economy.

The report carried a Systemic Risk Survey, which perceived all broad categories of risks to the financial system like the global, macroeconomic, financial market; institutional, and general - as 'medium' in magnitude but rated higher the risks arising account of global and financial markets.

Periodic KYC update extended by RBI till 31st March amid Omicron spread 1Twitter image: @RBI

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As per the 24th issue of the FSR.

"Cyber disruptions, domestic inflation, equity price volatility, asset quality deterioration, credit growth and domestic inflation were rated as the major risks."

The RBI noted that the global economic recovery has been losing push in the second half of 2021 in the face of reemerging Covid-19 virus, the new variant Omicron coronavirus, supply disruptions, and bottlenecks, elevated inflationary levels, and change in monetary policy stances, and emerging market economies and actions across advanced economies.

The Financial Stability Report is published bi-annually and includes contributions from all the financial sector regulators. It reflects the collective assessment of the Financial Stability and Development Council (FSDC-SC) on risks to financial stability.

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