Reserve Bank of India (RBI) governor Shaktikanta Das said on Wednesday customers do not need to visit the bank to do re-KYC (know your customer). It can be done online except in cases where there is a change of address, the governor said in answer to a query during a press conference after making the monetary policy announcements.
Das said banks can do re-KYC for customers without asking them to visit the branch. If banks insist on branch visits for it, customers can even raise a complaint with the appropriate authorities.
What is re-KYC?
Based on RBI guidelines, lenders ask for re-KYC at specific intervals to keep the bank's records updated. Customers can update the records through re-KYC if personal or contact information has changed.
As per RBI’s KYC norm guidelines, banks need to update the customer identification documents of their account holders periodically.
In addition to the KYC carried out when opening an account, customers may be required to undergo re-KYC and submit the requisite documents.
What is the period for re-KYC?
As per banking experts, the time intervals for periodic updation of KYC are 2, 8 and 10 years for existing high, medium and low-risk customers, respectively.
What happens if re-KYC is not done?
As per RBI rules, the bank has full right, even to close the account if required KYC documents were not submitted by the customer for periodical updating.
However, it's important to understand that there is a central KYC registry, and if the identifier number can be shared with other banks, then re-KYC need not be done.
Meanwhile,
RBI has raised the benchmark lending rate by 35 basis points to 6.25 percent to tame inflation. This is the fifth consecutive rate hike after a 40 basis points increase in May and 50 basis points hike each in June, August, and September. The RBI has raised the benchmark rate by 2.25 percent since May this year.
First Published: Dec 7, 2022 1:33 PM IST
