What are KYC norms?

KYC or know your customer is a process that individuals need to complete before they purchase any kind of financial product such as a mutual fund, insurance policy, stock or even before they can open a bank account. It involves verification of the individual’s identity, address and other key details.

What is re-KYC bank?

KYC (Know Your Customer) details are updated while opening the Account. Based on RBI guidelines, Bank may ask for Re-KYC at specific intervals to keep the records of the Bank updated. If any of your personal or contact information has changed, they will updated in Bank Records through Re-KYC process.

What is re-KYC and when is it required?

In this regard, in addition to the KYC carried out at the time of account opening, the account holders may be required to undergo re-KYC and submit relevant documents periodically. It is in the interest of good housekeeping of financial records to check the status of accounts held with a bank and submit necessary KYC documents as and when required.

How often do banks update KYC Records?

Banks are required to periodically update KYC records. This is a part of their ongoing due diligence on bank accounts. The periodicity of such updation would vary from account to account or categories of accounts depending on the bank’s perception of risk. Periodical updation of records also helps prevent frauds in customer accounts.

What is the process of re-submission of KYC documents to a bank?

Banks also keep sending reminders to customers regarding re-submission of KYC documents. Customers are required to fill a re-KYC form. Personal information and contact details need to be provided in the form. The form has to be signed by the account holder.

Is kykyc necessary for bank’s own customers?

KYC exercise may not be necessary for bank’s own customers for purchasing third party products.