Govt allowed directors to submit details with reduced fee for 15 days- KYC Compliance

21 Sep
Govt allowed directors to submit details with reduced fee for 15 days- KYC Compliance

The government has given 15 days more to directors to comply with KYC requirements by paying a reduced fee of Rs 500, according to the official notification hosted at Ministry of Corporate Affairs (MCA).

"The Non-Compliant DINs have since been marked as "Deactivated due to non-filing of DIR-3 KYC. However, the non-compliant DIN holders may file DIR-3 KYC with a fee of Rs. 500 (Rupees Five Hundred Only) from 21st September till 5th October (both days inclusive) to getthier DINs reactivated. From 6th October 2018 a fee of Rs. 5000 (Rupees Five Thousand Only) becomes payable for reactivation", an official message hosted at MCA website.

Nearly 21 lakh directors failed to submit the requisite details as on the September 15, i.e. last date of submission of DIR-3 KYC, set by the Ministry of Corporate Affairs.

The ministry has already de-activated the Director  Identification Numbers (DINs) of individuals who has failed to submit the KYC (Know Your Customer) details in the prescribed form DIR-3 KYC.

DIN is a unique number allotted to individuals who are eligible to have directorship on the boards of companies registered with MCA.

In June, the ministry decided to carry out KYC process for all directors, including those who have been disqualified. The last date for complying with the new norms by way of submitting form 'DIR-3 KYC' without fee ended on September 15.

Out of 33 lakh active directors, only around 12.15 lakh directors completed the KYC process by September 15. Around  21 lakh individuals failed to ensure compliance.