a. Review of validation of KYC records by KRAs under Risk Management Framework  

1. The provisions of the Master Circular dated October 12, 2023 have been reviewed and it has been decided to simplify the risk management framework through verification by KRA's

2. Based on the above following clauses of the master circular stand modified:

2.1 Para 96 shall be read as follows: As a part of risk management framework, the KRAs shall verify the following attributes of records of all clients within 2 days of receipt of KYC records a. PAN b. Name c. Address

2.2 Para 100 shall be read as:

Client records that have been checked by KRAs against official databases like the Income Tax Department's PAN database, Aadhaar XML, Digilocker, or M-Aadhaar, and have confirmed PAN-Aadhaar linkage as per Rule 114 AAA of the Income Tax Rules, 1962, will be considered as Validated Records.

3. The Exchanges / Depositories / concerned intermediaries shall complete the necessary technical change in their systems by May 31, 2024.