RBI alert! Beware of frauds in the name of KYC updation. Check how you may be fooled

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Updated: September 13, 2021 4:37 PM

The Reserve Bank of India (RBI) today cautioned people against frauds being conducted in the name of KYC updation.


The Reserve Bank of India (RBI) today cautioned people against frauds being conducted in the name of KYC updation.

In a statement, the RBI said it has been receiving complaints/reports about customers falling prey to frauds being perpetrated in the name of KYC updation.

Modus Operandi

The central bank said that the usual modus operandi in such cases include receipt of unsolicited communication, such as calls, SMSs, emails, etc., by customer urging him/her to share certain personal details, account/login details/card information, PIN, OTP, etc. or install some unauthorised/unverified application for KYC updation using a link provided in the communication.

Such communications are also reported to carry threats of account freeze/ block/closure. Once a customer shares information over call/message/unauthorised application, fraudsters get access to customer’s account and defraud him/her.

“Members of public are hereby cautioned not to share account login details,personal information, copies of KYC documents, card information, PIN, password, OTP, etc. with unidentified persons or agencies. Further, such details should not be shared through unverified/unauthorised websites or applications,” RBI said.

What to do?

RBI said that in case customers receive any request for sharing details account login, personal information, copies of KYC document etc, they should get in touch with their bank/branch.

The RBI further said it is also clarified that while the Regulated Entities (REs) are required to undertake periodic updation of KYC, the process of periodic updation of KYC has been simplified to a large extent vide circular dated May 10, 2021.

Further, through a circular dated May 5, 2021, the Regulated Entities were “advised that in respect of customer accounts where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of law, etc,” RBI said.

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