The Reserve Bank of India on Thursday asked banks and all India financial institutions to dispense with the requirement of ‘positive confirmation’ at two/three years in respect of medium and low risk customers respectively.

Positive confirmation pertains to obtaining Know-Your-Customer related updates through e-mail/ letter/ telephonic conversation/ forms/ interviews/ visits, etc.

The central bank, however, said the requirements of client due diligence measures applied when establishing an account-based relationship and on-going due diligence would continue.

The central bank also said the requirement of applying client due diligence measures to existing clients at an interval of two/eight/ten years in respect of high/medium/low risk clients respectively, would continue taking into account whether and when client due diligence measures have previously been undertaken and the adequacy of data obtained.

Physical presence of the clients may, however, not be insisted upon at the time of such periodic updations.

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