The RBI has amended the KYC norms allowing banks and other
lending institutions regulated by it to use Video based Customer
Identification Process (V-CIP), a move which will help them onboard
The V-CIP, which will be consent-based, will make it easier for
banks and other regulated entities to adhere to the RBI's Know Your Customer (KYC)
norms by leveraging the digital technology.
The Reserve Bank said it decided to permit video based Customer
Identification Process (V-CIP) as a consent based alternate method of
establishing the customer's identity, for customer onboarding with a view to
leveraging the digital channels for Customer Identification Process (CIP) by
regulated entities (REs).
The RBI further said that the regulated entities will have to
ensure that the video recording is stored in a safe and secure manner and bears
the date and time stamp.
Last year, the government had notified amendment to the
Prevention of Money-laundering (Maintenance of Records) Rules, 2005. As per the
circular, the reporting entity should capture a clear image of PAN card to be
displayed by the customer during the process.
The environment ministry has decided to waive green
clearance requirements for distilleries planning to produce up to 50% more
ethanol than their nameplate capacity without increasing pollution.
The decision will enable sugar mills to divert more raw material
towards producing ethanol this season, helping them fight sugar supply glut and
provide more ethanol for blending with petrol without having to wait for green
clearances, which could have taken six months to a year and, in many cases,
forced units to miss the opportunity of additional ethanol output this sugar
The country’s sugar industry is facing a glut this season,
prompting the government to enhance sugar export subsidy and permit mills to use
sugar, sugarcane juice and B-heavy molasses to produce ethanol, which oil
marketing companies can buy. Mills could earlier use only C-molasses, which
contain comparatively less sugar.
With the use of sugarcane juice and B-heavy molasses, the
distilleries are able to produce more ethanol with the same quantum of raw
material. But a production that’s higher than the nameplate capacity created a
new challenge for mills – the need for a new green clearance.
For capacity expansion, distilleries must obtain environment
clearances, which involve public hearing and environment impact assessment and
can take up to a year. By waiving off such requirements, the government is
aiming to make it easier for industry without hurting the environment.