People can now update their KYC (Know Your Customer) information online rather than by visiting a bank. The Reserve Bank of India (RBI) has made it mandatory for customers to routinely update their KYC data in order to preserve industry standards and protect the financial system.
The RBI has now made online KYC updates available for consumers who have already provided valid documents and whose address has not changed to make this procedure easier.
Until last year, upgrading KYC needed a bank visit. However, the Reserve Bank of India (RBI) said in a circular dated January 5, 2023, that if there are no changes in KYC information, individuals can make a self-declaration using their email address, registered cellphone number, ATMs, or other digital means. According to the circular, “if there is no change in KYC information, an individual customer’s self-declaration to that effect is sufficient to complete the re-KYC process.”
“The banks have been advised to provide such self-declaration facilities to individual customers through various non-face-to-face channels such as registered email-id, registered mobile number, ATMs, digital channels (such as online banking/internet banking, mobile application), letter, etc., without the need for a visit to a bank branch.”
Customers can also give the revised or updated address using any of these methods if their address changes, according to the circular. Following that, the bank will verify the newly claimed address within two months.
Simple Steps To Update KYC Online
- Go to your bank’s online banking interface and sign in.
- Locate and choose the ‘KYC’ tab.
- Follow the on-screen directions and enter your information, including your name, address, and birth date.
- Upload the scanned copies of your Aadhaar, PAN, and any other required documents. Carefully scan both sides of your official identification cards.
- Press the ‘Submit’ button. You will be assigned a service request number, and the bank will keep you updated on the status of your request through SMS or email, as appropriate.
What If KYC Is Not Kept Up To Date?
Know Your Customer (KYC) is a process through which banks acquire information about their client’s names and addresses. This information is gathered in order to authenticate the customer’s identification and assess their risk level. The KYC procedure is critical in preventing the misuse of banks’ services.
The KYC procedure is necessary for banks when creating new accounts and must be updated on a regular basis. Failure to update your KYC information may result in transaction limits or possibly the temporary suspension of your bank account. In some cases, failing to update may result in the account being closed. That is, you will be unable to use your account for certain financial or non-financial purposes. However, before taking this big action, the bank will notify you if your KYC has not been updated before suspending your account.