SEBI Eased Rule for Re-KYC Process for Non-Resident Indians

Markets regulator SEBI on Wednesday simplified the re-KYC process for Non-Resident Indians (NRIs) by removing the requirement for individuals to be physically present in India during digital verification.

Objective for Re-KYC Procedure

The move is intended to make the re-KYC procedure more convenient and accessible for NRIs. In its latest circular, SEBI announced amendments to the existing framework after receiving inputs from various stakeholders, aiming to streamline re-KYC compliance.

According to the revised rules, NRIs no longer need to be located in India while completing digital re-KYC for existing accounts, the regulator stated. Re-KYC, or Re-Know Your Customer, refers to updating or reconfirming a client’s KYC information with a financial intermediary.

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New Onboarding Will be Excluded from Revised Rule

Despite the relaxation, the digital KYC application must still deploy safeguards such as random prompts, time-stamps, and geo-tagging to ensure the authenticity of the interaction. While new client onboarding will continue to require the user to be physically in India, existing NRI clients can now complete their re-KYC from overseas. Additionally, the app must confirm that the GPS location corresponds to the country listed in the client’s address proof and must block attempts involving spoofed or masked IP addresses.

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