Re-KYC for Bank Account: Is it mandatory? What RBI says | The Financial Express

Re-KYC for Bank Account: Is it mandatory? What RBI says

Re-KYC: In case there is no change in any KYC information, customers can do a re-KYC through self-declaration.

re-kyc
Is re-KYC mandatory for bank customers? Know what RBI says. Representational image

Periodic updation of KYC details of customers is mandatory for banks. The Reserve Bank of India (RBI) has, however, simplified the process for the periodic updation of KYC (re-KYC). In a statement dated January 5, the RBI reiterated the need for period updation of KYC details of customers and the ways in which they can do that.

Re-KYC when there is no change

In case there is no change in any KYC information, customers can do a re-KYC through self-declaration. The RBI has instructed banks to provide facilities for such self-declaration through various non-face-to-face channels.

“As per the present guidelines, if there is no change in KYC information, a self-declaration to that effect from the individual customer is sufficient to complete the re-KYC process. The banks have been advised to provide facility of such self-declaration to the 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 need for a visit to bank branch,” RBI said.

Also Read: Does writing on Rs 2000, Rs 500, Rs 200 or Rs 100 notes make them invalid?

Re-KYC when there is a change in address only

In case there is only a change in address, customers can furnish revised/updated addresses through any of the non-face-to-face channels mentioned above. After the submission of the revised address, banks are required to undertake the verification of the declared address within two months.

Fresh KYC

In some cases, banks may be required to do fresh KYC. For instance, there may be cases where KYC documents available with the banks do not conform to the list of officially valid documents. RBI says that in such cases, banks are required to provide an acknowledgement of the receipt of KYC documents/self-declaration submitted by the customers.

RBI further says that fresh KYC can be done by visiting a bank branch or remotely through a video-based customer identification process.

Also Read: Where have the Rs 2000 notes gone? Finance Ministry clarifies

Account of minors

In the case of customers who were minors when their accounts were opened, RBI says banks should obtain fresh photographs of such customers on their becoming a major.

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First published on: 09-01-2023 at 10:52 IST