Citizens can now update their KYC (Know Your Customer) details online, without having to go to the bank. The Reserve Bank of India (RBI) has made it mandatory for users to update their KYC details regularly in order to maintain consistency across the industry and protect the financial system. To make this process easier, the RBI has now made online KYC updates available for users who have already submitted valid documents and whose address has not changed.
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Until last year, updating KYC required a visit to a branch. However, in a circular dated January 5, 2023, the Reserve Bank of India (RBI) announced that if there are no changes in KYC information, users can submit a self-declaration through their email address, registered mobile number, ATMs, or other digital channels. The circular states, 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 facilities for such self-declaration 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 need for a visit to bank branch.”
The circular also mentions that in the case of an address change, customers can provide the revised or updated address through any of these channels. Subsequently, the bank will verify the newly declared address within a span of two months.
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How to update KYC online
– Log in to your bank’s online banking portal.
– Locate the ‘KYC’ tab and click on it.
– Follow the on-screen instructions and provide your details, including your name, address, and date of birth.
– Upload scanned copies of Aadhaar, PAN, and the required documents. Ensure that you scan both sides of your government ID cards.
– Click on the ‘Submit’ button. You will receive a service request number, and the bank will keep you updated on the progress via SMS or Email, as applicable.
Notably, in some cases, you may need to visit a bank branch to update your KYC documents. This is usually necessary if your KYC documents have expired or are no longer valid. When you visit the bank branch, you will need to bring the documents specified in the list of officially valid documents (OVD).
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What if KYC is not updated
Know Your Customer (KYC) is a procedure through which banks collect details regarding their customers’ identities and addresses. This collected information serves the purpose of confirming the customer’s identity and evaluating their risk level. The KYC process plays a crucial role in preventing the misuse of banks’ services.
The KYC procedure is mandatory for banks when initiating account openings and is also required to be periodically updated.
Failing to update your KYC information could lead to restrictions on transactions or even a temporary suspension of your bank account. Sometimes, not updating could even result in the account being closed. Which means, you won’t be able to use your account for specific financial or non-financial activities.
However, before taking this serious step, the bank will inform you if your KYC isn’t updated before your account is suspended.
According to a KYC update FAQ from the RBI, if a customer who already has an account with a regulated entity decides not to provide their Permanent Account Number (PAN) or an equivalent e-document, or Form No.60, the regulated entity will close the account. Any outstanding obligations related to the account will be settled once the customer’s identity is confirmed by obtaining appropriate identification documents.
