Mumbai: Many bank customers and other financial services that have not updated identity and proof documents Their addresses may find their account frozen in the new year.
The reason: on December 31, 2021, The Reserve Bank of India freezes actions by banks on customers who have not obeyed your customer’s norm (KYC) will end.
At some point, there are hundreds of customers whose validity of KYC ends.
However, there may be many actions because the RBI has asked the bank not to insist KYC after the second wave of pandemic.
The requirements for updating KYC norms are not only for banks but each financial entity is regulated as part of the anti-money laundering law.
These include financial companies, mutual funds, home and deposit intermediaries.
Bankers say that for customers in low risk accounts, KYC needs to be updated every 10 years.
However, those who are classified as high risk need to update their account every two years.
In addition, an inactive and inactive account also requires fresh KYC updates to revoke or reactivate the account.
Although for most customers, the requirements are to renew only once in 10 years, bankers say that updates are more often needed because in some cases, documents sent may not be part of the list of valid official documents.
Also, where customers have changed accounts and communications returned to the bank, KYC must be done again.
In circulation to all banks in May 2021, RBI said, “Given the current covid restrictions in various parts of the country, the regulated entity is advised that in connection with the customer’s account where KYC updates will periodically be due and delayed on the date, there are no restrictions The operation of the account will be applied until December 31, 2021, for this reason, unless it is guaranteed by instructions from each regulator / law court.
“Although there are a number of options now for the entity set to comply with KYC norms (KYC videos, share documents via DigiLocker), Many still don’t meet.
Another problem is that given the number of ongoing phishing attacks using KYC as bait, customers have changed alert with this message or call.