Markets regulator Sebi on Wednesday simplified the re-KYC process for non-resident Indians (NRIs) by eliminating the requirement to be physically present in India during the digital verification process. The move aims to make the re-KYC process smoother and more accessible to NRIs. Sebi, in a recent circular, decided to amend the current provisions to simplify re-KYC access for NRIs, following input from various stakeholders. The requirement for an individual’s physical presence in India during the digital onboarding process for existing customers has been relaxed for the re-KYC process, the regulator said. The circular says, “The requirement of physical location of the customer who is in India during digital onboarding will be relaxed to undertake re-KYC for existing customers.” What is re-KYC? Re-KYC (Re-Know Your Customer) involves updating or revalidating a customer’s KYC information with a financial institution or intermediary. The digital KYC application must still use tools such as random prompts, time-stamping and geo-tagging to verify that interactions are authentic. While onboarding still requires an India-based location, re-KYC for existing NRI customers can now be completed from overseas. The app must also ensure that the GPS location matches the country listed in the customer’s proof of address and must block any scam IP connections. The circular was issued following Sebi’s consultation document on 23 October. “SEBI has received representations from various stakeholders to facilitate KYC access for Non-Resident Indians (NRIs). SEBI has decided to amend the existing provisions under Master Circular on KYC dated October 12, 2023 to facilitate the process or KYC paper,” modYC or KYC paper. “In this regard, the requirement of physical location in India will be relaxed for NRI customers to undertake due diligence through digital mode,” it added. Sebi Chief Marks Need to Ease Norms The latest circular comes nearly two months after Sebi Chief Tuhin Kanta Pandey emphasized the need to create a simple and secure KYC process for NRIs, aimed at encouraging their involvement in the bond market. “We have a long way to go in investor awareness. We have simplified KYC norms and allowed transactions and securities once this process is completed. However, we are yet to establish an easy and secure KYC access for NRIs to facilitate their participation in the securities market. This will be an urgent goal for us,” ANI quoted Pandey as saying in MFF20205’s BFF205 Capital Market speech.