RBI Guv Shaktikanta Das revealed several relief measures to take on the COVID crisisAmid the 2nd wave of COVID-19 in the nation and its induced constraints in numerous states, the Reserve Bank of India (RBI) on Wednesday, Might 5, directed banks and other regulated monetary entities to not enforce any punitive action versus clients for failure to update KYC (know-your-customer) till completion of the year.

RBI Guv Shaktikanta Das, in an unscheduled speech today, revealed a number of relief steps to deal with the ongoing coronavirus crisis throughout the country.

(Also Read: RBI States Loan Moratorium For Little Debtors - See Who Qualifies )As part of the announcement, the reserve bank decided to extend the scope of the video KYC or V-CIP (video-based consumer identification procedure) for the new classifications of consumers such as proprietorship firms, authorised signatories, along with helpful owners of legal entities.

Keeping in view the existing COVID-19 related limitations in numerous parts of the nation, controlled entities are advised that in respect of the consumer accounts where routine updation of KYC is due and pending as on date, no limitations on operations of such account shall be imposed till December 31, 2021, for this factor alone, unless required under instructions of any regulator/ enforcement agency/court of law, etc, stated the RBI in its circular dated May 5, 2021.

This means that customers for whom the regular updation of KYC norms is due or is pending will be able to access their accounts with no constraints from their respective banks till completion of this year.

The RBI has actually likewise permitted digital channels for the regular updation of KYC for the benefit of customers.

The digital channels include video-KYC and submission of electronic files through digilocker.

(Likewise Check Out: RBI Announces Term Liquidity Facility Of 50,000 Crore For Health Care )According to the RBI, digital KYC refers to catching the live image of the consumer and a formally legitimate document or the evidence of owning the Aadhaar card.

The latitude and longitude of the place is taken by an authorised officer of the managed entity/bank, from where the live picture is being offered by the client.

Offering an extension for KYC compliance norms till Dec 31 will help supply customers extra time to finish it and ward off any type of charge that might be enforced on them.

Even more, a choice of finishing their KYC through video will permit debtors to finish their documentation from the safety of their houses, said Sashank Rishyasringa - Co-Founder - MD - Capital Float.Meanwhile, in his address, the RBI Governor likewise stressed that the central bank stands in 'battle readiness' and will continue to remain proactive throughout the year, to handle the progressing situation in the nation.