Dear Members,
There is a clause regarding Re-KYC in the comprehensive document on KYC released by RBI that is Master Direction - Know Your Customer (KYC) Direction, 2016 (Updated as on January 04, 2024), in Part V, 38. it states:
Use case:
I have a year old SBM Bank account that I opened online like some of you with PAN+Aadhaar+VKYC. Now they are repeatedly asking me to do re-KYC with same method including VKYC.
I emailed them from my registered email ID stating that no information has changed in my KYC since submission hence please record the same, but they are still sending KYC links and asking me to do it to prevent restrictions of operations. So, I escalated to NO, their reply was KYC is mandatory and I have to do their process.
My question is, is there something I am misinterpreting? If KYC information is unchanged, then the declaration should be sufficed, or else if I must re-submit KYC then the need for self-declaration becomes redundant, as if no change is seen the same is recorded or otherwise the changes are recorded.
Or SBM Bank is trying to stick to their handbook here without paying heed to RBI's guidelines, as they have from time to time?
Learned opinions would be appreciated. @TechnoFino @Abhishek012
The issue has been addressed. Refer to the Closure below.
There is a clause regarding Re-KYC in the comprehensive document on KYC released by RBI that is Master Direction - Know Your Customer (KYC) Direction, 2016 (Updated as on January 04, 2024), in Part V, 38. it states:
I found the highlighted clause interesting.Updation / Periodic Updation of KYC
REs shall adopt a risk-based approach for periodic updation of KYC ensuring that the information or data collected under CDD is kept up-to-date and relevant, particularly where there is high risk. However, periodic updation shall be carried out at least once in every two years for high-risk customers, once in every eight years for medium risk customers and once in every ten years for low-risk customers from the date of opening of the account / last KYC updation. Policy in this regard shall be documented as part of REs’ internal KYC policy duly approved by the Board of Directors of REs or any committee of the Board to which power has been delegated.
a) Individuals:
- No change in KYC information: In case of no change in the KYC information, a self-declaration from the customer in this regard shall be obtained through customer’s email-id registered with the RE, customer’s mobile number registered with the RE, ATMs, digital channels (such as online banking / internet banking, mobile application of RE), letter, etc.
Use case:
I have a year old SBM Bank account that I opened online like some of you with PAN+Aadhaar+VKYC. Now they are repeatedly asking me to do re-KYC with same method including VKYC.
I emailed them from my registered email ID stating that no information has changed in my KYC since submission hence please record the same, but they are still sending KYC links and asking me to do it to prevent restrictions of operations. So, I escalated to NO, their reply was KYC is mandatory and I have to do their process.
My question is, is there something I am misinterpreting? If KYC information is unchanged, then the declaration should be sufficed, or else if I must re-submit KYC then the need for self-declaration becomes redundant, as if no change is seen the same is recorded or otherwise the changes are recorded.
Or SBM Bank is trying to stick to their handbook here without paying heed to RBI's guidelines, as they have from time to time?
Learned opinions would be appreciated. @TechnoFino @Abhishek012
The issue has been addressed. Refer to the Closure below.
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