The Reserve Bank of India today issued Know Your Customer (KYC) guidelines for non-banking financial companies (NBFCs). The guidelines are akin to those already advised to commercial banks. The boards of directors of the NBFCs have been advised to formulate policies and procedures to operationalise and ensure the observance of these guidelines in respect of all new customers.

The NBFCs have also been advised to complete the identification process in respect of the existing customers by June 30, 2004. These guidelines are applicable to all NBFCs including Miscellaneous Non-Banking Companies (Chit Fund Companies) and Residuary Non-Banking Companies and come into effect immediately.

The guidelines are available on the RBI website at Notifications section

Suraj Prakash
Manager

Press Release : 2003-2004/828