State the procedure of KYC of directors in Form DIR-3 and mention the consequence of non-compliance in this regard. (KYC stands for 'Know Your Customer' or 'Know Your Client').

KYC (Know your Customers/Clients) of Directors is conducted by the MCA at the time of the Allotment of the Director Identification Number and earlier it was not mandatory for the Director to update their KYC on the subsequent change. With the insertion of Rule 12A in the Companies (Appointment and Qualification of Directors) Rules, 2014, every individual who has been allotted a Director Identification Number (DIN) as on 31st March of a financial year needs to submit e-form DIR-3-KYC to the Central Government on or before 30th September of immediate next financial year. Some important points to be noted in respect of DIR-3 KYC are as under: DIR-3 KYC is required to be filed by every individual who has been allotted DIN on or before 31st March, of a Financial Year. Due date of filing of DIR-3KYC is on or before 30th September of immediate next financial year. Prerequisite Mandatory Information for DIR-3 is as under: Unique Personal Mobile Number Personal Email ID. Certification of DIR-3 KYC: First by affixing Registered Digital Signature of respective person / Director Certification by practicing professional by affixing Digital Signature (CS/CA/CMA) Filing of DIR-3 KYC would be mandatory for Disqualified Directors as well. The consequences of Non-Compliances are as under: If a director fails to file DIR-3 KYC, the MCA21 system will mark all approved DINs (allotted on or before 31st March, 2018) against which DIR-3 KYC form has not been filed as 'Deactivated' with reason as 'Non-filing of DIR-3 KYC'. MCA has notified 'Nil Fee' and 'late Fee of ₹5,000 (Applicable after the due date) for Filing e-Form DIR-3 KYC under rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014.