Pensioner in SBI , No Loan, still High Risk Category - ReKYC - 2 Years

[hender]

Background:

40 years old Govt Salary Account in SBI(same branch) now getting pension from past 10 years. (Age:70 years)

PPF account since 2000, Now extended again in 2025 for 5 more years(online).

PPF contribution from SBI net Banking from past many years. Some FD online.

Every Year Pensioner Life Certificate in November through Physical SBI Branch Visit.(Form Filled).

SBI relationship: (1 SB Account(with min 2-3 lakhs balance maintain), 1 PPF account, 3 FD'S
No Loan, No CC(Ever).

Got letter from branch for ReKYC last week, and a call from some lady employee 🤙 yesterday.

Visited the branch with Uncle, met BM, he understood the issue, checked in the excel database, confirmed for ReKYC.
When we asked 'why it's so frequent, as uncle remember 2 years back they did ReKYC.'

BM confirmed uncle's profile is in HIGH RISK CATEGORY (at Present) as per SBI internal Parameter, so it's required periodic KYC in 2 years. Risk Category will be updated in next 6 months., than future ReKYC will depend on that.

It took total 15-30 min, ReKYC got updated in the system, Got confirmation SMS, Mail for KYC update. BM personally checked in the system and confirmed the same.
Even got SMS for feedback.

@SSV @RAMESH BABU N @desiviru @SJM

I found it little strange, still your words will help me and others to understand the situation more carefully.

 

[6ix9ine]

I found it little strange, still your words will help me and others to understand the situation more carefully.

They are not lying. Here’s the RBI circular that confirms it:

https://m.rbi.org.in//scripts/BS_ViewMasDirections.aspx?id=11566

Search for "high risk" and you will find the clause.

 

[sadhunath]

Any of thse could flag your uncle's account to be high-risk,

Income Source: The nature and stability of a customer’s income source are assessed to determine the level of risk associated with it. Customers with a stable and verifiable income source are generally considered lower risk.

Residential Status: The residential status of a customer, whether they are residents or non-residents, influences the risk categorization. Non-resident customers may have additional regulatory requirements due to potential jurisdictional complexities.

Geographical Location: The geographical location of a customer, especially if they reside in high-risk jurisdictions, can affect their risk categorization. Certain locations may be prone to money laundering or other financial crimes, requiring enhanced scrutiny.

Net Worth: The customer’s net worth, including assets, liabilities, and overall financial stability, is an important consideration. Higher net worth individuals or entities may be classified as lower risk.

Legal Structure: For corporate borrowers, the legal structure of the entity is taken into account. Companies with sound legal structures and transparent ownership (identification of beneficial ownership) are typically considered lower risk.

Turnover: The turnover of a corporate borrower provides insights into its financial performance. Higher turnover may indicate required more monitoring and be considered as a higher risk profile.

Rating of Corporate Borrowers: If available, credit ratings of corporate borrowers are considered as an additional factor for risk assessment. Higher credit ratings suggest a lower risk level.

Business Operations: Certain business operations are considered as risky and uncertain, such as dealing in crypto-assets, arms manufacturers/ dealers/ intermediaries; business relating to nuclear proliferation activities/ explosives; dealers in high value or precious goods (e.g jewel, gem/ precious metals dealers, art/ antique dealers and auction houses, estate agents, real estate brokers); multi-level marketing companies. Such customers are classified under the high-risk category.

Non-face-to-face Customers: Customers who are not physically present during the onboarding process, such as those who open accounts remotely, may pose higher risks due to the limited ability to verify their identity.

Politically Exposed Persons (PEPs): PEPs are individuals who hold prominent public positions or have close associations with political figures. They are subject to higher scrutiny due to the potential risks associated with money laundering and corruption. In case the customer or Beneficial Owner is a PEP, the monitoring is high and so is the risk profile.

 

[hender]

Any of thse could flag your uncle's account to be high-risk,

No adverse parameter, in his case.

 

[desiviru]

Background:

40 years old Govt Salary Account in SBI(same branch) now getting pension from past 10 years. (Age:70 years)

PPF account since 2000, Now extended again in 2025 for 5 more years(online).

PPF contribution from SBI net Banking from past many years. Some FD online.

Every Year Pensioner Life Certificate in November through Physical SBI Branch Visit.(Form Filled).

SBI relationship: (1 SB Account(with min 2-3 lakhs balance maintain), 1 PPF account, 3 FD'S
No Loan, No CC(Ever).

Got letter from branch for ReKYC last week, and a call from some lady employee 🤙 yesterday.

Visited the branch with Uncle, met BM, he understood the issue, checked in the excel database, confirmed for ReKYC.
When we asked 'why it's so frequent, as uncle remember 2 years back they did ReKYC.'

BM confirmed uncle's profile is in HIGH RISK CATEGORY (at Present) as per SBI internal Parameter, so it's required periodic KYC in 2 years. Risk Category will be updated in next 6 months., than future ReKYC will depend on that.

It took total 15-30 min, ReKYC got updated in the system, Got confirmation SMS, Mail for KYC update. BM personally checked in the system and confirmed the same.
Even got SMS for feedback.

@SSV @RAMESH BABU N @desiviru @SJM

I found it little strange, still your words will help me and others to understand the situation more carefully.

Same happening with my father's account who has retired from SBI. But he knows that this is as per RBI's policy.

People having FDs more than 10L, PPF, Balance in accounts are categorized as high risk customers and also age playing factor. They are more prone to losing their money to frauds. When some unusual txns are happened or their regular patterns changes, system alerts for reKYC.

ReKYC ensures many things are on track with such categorized customers. Sometimes even debit freeze on account can happen. 🙂

 

[hender]

Same happening with my father's account who has retired from SBI. But he knows that this is as per RBI's policy.

People having FDs more than 10L, PPF, Balance in accounts are categorized as high risk customers and also age playing factor. They are more prone to losing their money to frauds. When some unusual txns are happened or their regular patterns changes, system alerts for reKYC.

ReKYC ensures many things are on track with such categorized customers. Sometimes even debit freeze on account can happen. 🙂

Thanks for sharing your input.

It's a pension account, almost identical transaction y o y. (PPF, FD, Saving Balance and age is the key Factor, as you said, might be the trigger)

His transaction account is different, where really good transaction took place in previous years and no such periodic ReKYC (2 years) reported/asked so far.

 

[desiviru]

Thanks for sharing your input.

It's a pension account, almost identical transaction y o y. (PPF, FD, Saving Balance and age is the key Factor, as you said, might be the trigger)

His transaction account is different, where really good transaction took place in previous years and no such periodic ReKYC (2 years) reported/asked so far.

That account might not be categorized as high risk.

My own account in ICICI has been categorized differently and once needed to do re-KYC twice. Thing here is most of BM know me personally and share details on why it was needed so we get to know it. These days after carrying high value txn I inside know it might trigger re-KYC but some times it don't.

In past my HDFC account was freezed same day my FDs matured and I shifted balance to PNB. Outflow trigger a/c debit freeze. Went to branch and it was re-opened in minutes after KYC submission which was just DL copy.

 

[hender]

That account might not be categorized as high risk.

My own account in ICICI has been categorized differently and once needed to do re-KYC twice. Thing here is most of BM know me personally and share details on why it was needed so we get to know it. These days after carrying high value txn I inside know it might trigger re-KYC but some times it don't.

In past my HDFC account was freezed same day my FDs matured and I shifted balance to PNB. Outflow trigger a/c debit freeze. Went to branch and it was re-opened in minutes after KYC submission which was just DL copy.

Concern was not ReKYC , but to understand 'High Risk Category', as defined.
It felt unusual, in context of simple vanilla banking in that account, that too recently only.

 

[SJM]

Background:

40 years old Govt Salary Account in SBI(same branch) now getting pension from past 10 years. (Age:70 years)

PPF account since 2000, Now extended again in 2025 for 5 more years(online).

PPF contribution from SBI net Banking from past many years. Some FD online.

Every Year Pensioner Life Certificate in November through Physical SBI Branch Visit.(Form Filled).

SBI relationship: (1 SB Account(with min 2-3 lakhs balance maintain), 1 PPF account, 3 FD'S
No Loan, No CC(Ever).

Got letter from branch for ReKYC last week, and a call from some lady employee 🤙 yesterday.

Visited the branch with Uncle, met BM, he understood the issue, checked in the excel database, confirmed for ReKYC.
When we asked 'why it's so frequent, as uncle remember 2 years back they did ReKYC.'

BM confirmed uncle's profile is in HIGH RISK CATEGORY (at Present) as per SBI internal Parameter, so it's required periodic KYC in 2 years. Risk Category will be updated in next 6 months., than future ReKYC will depend on that.

It took total 15-30 min, ReKYC got updated in the system, Got confirmation SMS, Mail for KYC update. BM personally checked in the system and confirmed the same.
Even got SMS for feedback.

@SSV @RAMESH BABU N @desiviru @SJM

I found it little strange, still your words will help me and others to understand the situation more carefully.

Sorry, don't have much idea about this.

Incidentally, last Saturday only I came to know there is risk category for savings account while opening BoI account as the lady marked us Low Risk category. I asked her what is the risk in savings account and she mentioned that there are fraud accounts.

 

[hender]

Sorry, don't have much idea about this.

Incidentally, last Saturday only I came to know there is risk category for savings account while opening BoI account as the lady marked us Low Risk category. I asked her what is the risk in savings account and she mentioned that there are fraud accounts.

Thanks for sharing your input.
Govt Salary Account with PAN, normally comes under Low Risk Category in general, for Loan etc.

 

[cardio_guycardio_guy is verified member.]

My father also is in high risk category, last time I went to update his KYC, then the SBI staff told.
When asked why, she told it could be due to age or some other criteria, system dependent.
(He has just PPF, SCSS and savings account, no loan etc)
I was like OK, just to do KYC once in 2 years is not difficult for me.
Good to have those updated. There won't be any problems later while doing any big fund transfers.

 

[hender]

My father also is in high risk category, last time I went to update his KYC, then the SBI staff told.
When asked why, she told it could be due to age or some other criteria, system dependent.
(He has just PPF, SCSS and savings account, no loan etc)
I was like OK, just to do KYC once in 2 years is not difficult for me.
Good to have those updated. There won't be any problems later while doing any big fund transfers.

Thanks for sharing your input as well.
My understanding of (HIGH RISK) term till now is for LOAN, not for OWN money.

 

[Trust Me]

People having FDs more than 10L, PPF, Balance in accounts are categorized as high risk customers and also age playing factor. They are more prone to losing their money to frauds. When some unusual txns are happened or their regular patterns changes, system alerts for reKYC.

Something is missing here. If the above were true, I would qualify as a high risk customer myself. But I am considered to be a low risk customer at multiple banks, and was never asked for re-KYC for years. There have frequently been high-value transactions as well, but banks have only asked for confirmation for a few high-value cheques before letting them through (never for e-transactions).

What am I missing here?!
.

 

[6ix9ine]

Something is missing here. If the above were true, I would qualify as a high risk customer myself. But I am considered to be a low risk customer at multiple banks, and was never asked for re-KYC for years. There have frequently been high-value transactions as well, but banks have only asked for confirmation for a few high-value cheques before letting them through (never for e-transactions).

What am I missing here?!
.

Maybe age .

 

[desiviru]

Something is missing here. If the above were true, I would qualify as a high risk customer myself. But I am considered to be a low risk customer at multiple banks, and was never asked for re-KYC for years. There have frequently been high-value transactions as well, but banks have only asked for confirmation for a few high-value cheques before letting them through (never for e-transactions).

What am I missing here?!
.

In normal world, a high risk customer is a one who can defraud a bank. But here high risk profile is given when the transaction patterns aren't matching the KYC details. You tell bank you are having 5L income and then doing 15L txns per year and cash deposit in high value. Bank system consider you are bringing this money to them through not so legal means. They put you in high risk profile.

But sometimes senior citizens are put on high risk because they are not having jobs yet bigger txns flag the system. Being a high risk customer is actually more of a negative impact.

To get rid of this the KYC details with annual income and total networth should be icreased.

My total networth mentioned in bank account is more than 1.5-2 crore now. This lessens the problems. But can invite taxman if you really don't have proof for what you declare.

Banks forms clearly say the information I am giving/sharing is true and best of my knowledge. So concealing or lying leads to customer being pushed to high risk category.

Banking Industry is a complex system. If you are on right path then these reKYC won't bug you. But your transaction patterns if not matching with a normal user if profile say so you are a danger to bank.

Like a savings account customer won't have credits from too many different people. Having it leads to assumption that so and so account is being used for illicit purpose or an illega;l business to take money. Same way cheques credting/debiting if not in own name or for say CC payments leads to dobts.

Overall use a bank account with full scrutiny at your own level to avoid hassles.

 

[hender]

Maybe age .

They are not lying. Here’s the RBI circular that confirms it:

https://m.rbi.org.in//scripts/BS_ViewMasDirections.aspx?id=11566

Search for "high risk" and you will find the clause.

It seems more of SBI Specific wrt to Pensioner or certain Parameters classification.

 

[R_A_J]

Thanks for sharing your input as well.
My understanding of (HIGH RISK) term till now is for LOAN, not for OWN money.

Risk classification is done for each and every customer of the bank, be it loan or liabilities (current/savings), or any other product.
Sometimes, the risk classification is wrongly tagged by the officer, whereas some times it is on their discretion if they find the customer profile to be under low/medium or high risk.

Some of the categories used to fall under medium as well as high category - so, it depends upon the bank as well,.
You can "request" the BM to change (or get changed from backend) the risk classification, and see what he has to say.


btw, on a side note - HNW customers as well as Walk in customers were categorized as "high risk" category by default (atleast in 2018)....dont know if RBI has relaxed that criteria or not...... hence, the bank's have provisions of physical verification for current accounts and some of the savings account (to make the savings account as Low risk). Some of the bank do this in actual, while some ask for multiple docs (to get assured) and just comply that they did verification while processing account openings.

 

[hender]

Risk classification is done for each and every customer of the bank, be it loan or liabilities (current/savings), or any other product.
Sometimes, the risk classification is wrongly tagged by the officer, whereas some times it is on their discretion if they find the customer profile to be under low/medium or high risk.

Some of the categories used to fall under medium as well as high category - so, it depends upon the bank as well,.
You can "request" the BM to change (or get changed from backend) the risk classification, and see what he has to say.


btw, on a side note - HNW customers as well as Walk in customers were categorized as "high risk" category by default (atleast in 2018)....dont know if RBI has relaxed that criteria or not...... hence, the bank's have provisions of physical verification for current accounts and some of the savings account (to make the savings account as Low risk). Some of the bank do this in actual, while some ask for multiple docs (to get assured) and just comply that they did verification while processing account openings.

Appriciation for your reference ☝️.

On a Saving Account side SBI classify silver, gold, diamond Linked to Privilege, benefits.

 

[CosmicCat]

Sometimes, the risk classification is wrongly tagged by the officer, whereas some times it is on their discretion if they find the customer profile to be under low/medium or high risk.

This. As you can see in this video, the banker manually categorizes the risk profile of the customer in Finacle (A commonly-used CBS among most Indian banks) while creating the Customer ID (CIF).

So, the risk classification is essentially upon the staff's discretion or perhaps could be based on the internal policy governing risk profiling which the banker has to follow.

 

[R_A_J]

This. As you can see in this video, the banker manually categorizes the risk profile of the customer in Finacle (A commonly-used CBS among most Indian banks) while creating the Customer ID (CIF).

So, the risk classification is essentially upon the staff's discretion or perhaps could be based on the internal policy governing risk profiling which the banker has to follow.

Very true..... majorly it is bound by the internal KYC circulars, but still there is significant scope of officer's discretion!