**Policy Summary: Amendment to KYC Norms for Self Help Groups (SHGs)**
This policy, issued by the Reserve Bank of India (RBI) on April 1, 2021, under reference number RBI/2021-22/10 DOR.AML.BC.No.114/01.001/2021-22, pertains to amendments in the Master Direction (MD) on Know Your Customer (KYC) norms specifically for Self Help Groups (SHGs). The amendment modifies Section 43(c) of the Master Direction on KYC dated February 25, 2016, to mandate Customer Due Diligence (CDD) of all members of SHGs at the time of credit linking. The updated Master Direction on KYC takes immediate effect.
For further information, contact Thomas Mathew, Chief General Manager, Department of Regulation, Central Office, Central Office Building, 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001. Phone: 022-22701203; Fax: 022-22701239; Email: cgmamlrbi.org.in; Website: www.rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to here as RBI, issuing the notification.
Master Direction on KYC: A set of guidelines issued by the RBI related to Know Your Customer (KYC) norms.
Self Help Groups: Organizations of people with a common goal of improving their economic and social conditions, referred to here as SHGs.
Section 43 of the Master Direction on KYC dated February 25, 2016: Specific section of the Master Direction on KYC that outlines simplified norms for Self Help Groups (SHGs).
Customer Due Diligence: The process of identifying and verifying the identity of a customer, referred to here as CDD.
Thomas Mathew: Chief General Manager at the Reserve Bank of India, the signatory of the notification.
Mumbai, Maharashtra: City in India where the Central Office of the Department of Regulation, Reserve Bank of India is located.
Department of Regulation, Central Office: The department within the Reserve Bank of India issuing the notification.
RBI/2021-22/10
DOR.AML.BC.No.1/14.01.001/2021-22 April 1, 2021
The Chairpersons/ CEOs of all the banks
Madam/Sir,
Amendment to Master Direction (MD) on KYC – KYC norms for Self Help Groups (SHGs)
Please refer to Section 43 of the Master Direction on KYC dated February 25, 2016 as amended
from time to time, wherein simplified norms for Self Help Groups (SHGs) have been stipulated.
2. In this regard, on a review, it has been decided to amend clause (c) of Section 43 to read as
under:
“Customer Due Diligence (CDD) of all the members of SHG may be undertaken at the time of
credit linking of SHGs.”
3. The Master Direction on KYC dated February 25, 2016, is hereby updated to reflect the changes
effected by the above amendment and shall come into force with immediate effect.
Yours faithfully,
(Thomas Mathew)
Chief General Manager
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फोन फैक्स ईमेल वेबसाइट
, , , 13 , , – 400 001
: 022-22701203, : 022-22701239, - : cgmaml@rbi.org.in, : www.rbi.org.in
Department of Regulation, Central Office, Central Office Building, 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001
Phone : 022-22701203, Fax : 022-22701239, E-mail : cgmaml@rbi.org.in, Website : www.rbi.org.in
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