Citizens now have the convenience of updating their KYC (Know Your Customer) details online, eliminating the need for a visit to the bank. The Reserve Bank of India (RBI) has imposed the necessity for regular KYC updates to maintain uniformity across the financial industry and safeguard the integrity of the financial system. In a bid to simplify this process, the RBI has introduced online KYC updates for users who have previously submitted valid documents and have not changed their address.
In the past, updating KYC information required a physical branch visit. However, a circular dated January 5, 2023, from the Reserve Bank of India (RBI) changed the game. According to this circular, if there are no modifications to your KYC information, you can now submit a self-declaration via your registered email address, mobile number, ATMs, or other digital avenues. This circular specifies that if your KYC information remains unchanged, a self-declaration from you is sufficient to complete the re-KYC process.
Furthermore, banks have been instructed to offer facilities for such self-declarations to individual customers through non-face-to-face channels, including registered email addresses, mobile numbers, ATMs, digital platforms (such as online banking, mobile applications), or by mail, all without requiring a visit to a bank branch.
The circular also outlines the procedure for updating your address in the event of a change. Customers can provide their updated address via any of the aforementioned channels. Subsequently, the bank will verify the newly provided address within a span of two months.
Here’s a step-by-step guide on how to update your 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, ensuring that both sides of your government ID cards are scanned.
- 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.
It’s worth noting that in certain cases, you may still need to visit a bank branch to update your KYC documents. This is typically necessary if your KYC documents have expired or are no longer valid. During the branch visit, you will need to bring the documents specified in the list of officially valid documents (OVD).
What happens if you don’t update your KYC? The KYC process is vital for banks to collect information about their customers’ identities and addresses, helping confirm identity and assess risk. It is mandatory for account openings and must be periodically updated to prevent the misuse of banking services.
Failure to update your KYC information could result in transaction restrictions or even a temporary suspension of your bank account. In some cases, non-compliance could lead to account closure, rendering it unusable for specific financial or non-financial activities. However, before taking such a severe measure, the bank will notify you if your KYC isn’t updated before suspending your account.
According to an RBI KYC update FAQ, if a customer with an existing account with a regulated entity refuses 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 tied to the account will be settled once the customer’s identity is verified by obtaining appropriate identification documents
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