Because of the present pandemic situation, the second wave of Coronavirus infection. Reserve Bank of India asked all the banks and the regulated financial institutions to stop from imposing restrictions against customers for the failure of uploading “ Know Your Customers “ KYC , till 31 December 2021. It also decided to extend the scope of video based customer identification process for the customers who were newly entered in the some of the specified categories such as proprietorship firms, authorised signatories and all beneficial owners of legal entities.
The Governor of Reserve Bank of India said those words that “Reserve Bank of India stands in battle readiness to ensure that financial conditions remain congenial and markets due to work efficiently. The unconventional measures were taken to handle the second wave of corona virus and along with that it was asserted to provide certain reliefs to the small entities too.
Reserve Bank of India has actively participated to address the financial challenges which were arisen due to the second wave of Covid 19 pandemic.
Governor clearly explained to extend the video Know Your Customer to all the Proprietary ship firms and the banks were not supposed to direct the punitive restrictions on customers.