Warning from the Reserve Bank of India to the Bank Savings Account holders!
Posted on: 14/Oct/2019 12:10:08 PM
The Reserve Bank of India has warned all the savings bank account holders that KYC (Know Your Customer) must be renewed before 1st January 2020 failing which the savings account might be closed. Following this, the concerned savings bank account holder cannot do any direct or online bank transactions.
The procedure of furnishing personal details when a customer opens an account in any bank, known as KYC -Know Your Customer - has been in practice for the last few years. KYC contains the account holder’s Identity Proof, Residence Proof, landline and mobile telephone numbers, e-mail address, and photos.
Reserve Bank of India has ordered that this KYC detail submitted has to be renewed as per the specified intervals. This renewal procedure has been introduced with the objective of preventing illegal transactions and also to prevent money exchange to terrorist outfits through bank transactions and also considering the safety of the customer’s account.
Based on the routine of the account holder’s transaction details and other related data, the time period for renewal has been divided into 3 kinds - once in 2 years, once in 8 years, and once in 10 years when KYC has to be renewed.
It has been announced that the customer needs to visit the concerned bank branch get the KYC renewal form, fill up the same and also submit it along with the documents asked for.
For the customers who wish to record that there are no changed in the details furnished, a facility has been provided on the bank website to click the option ‘no change in KYC’ for carrying out the renewal.
In this situation, banks including SBI, IDBI, and ICICI have been sending SMS/e-mails regarding this to their customers. The notification mentions that KYC renewal must be completed before 1st January 2020.
The accounts for which KYC has not been renewed before the above deadline will be closed preventing any direct personal or online transactions.
