27 April, 2023
You must be familiar with the Know Your Customer (KYC) process. But do you know what re-KYC is? The Government of India introduced KYC in 2002 to allow banks and financial institutions easy access to clients' personal information and curb illegal activities. From investment instruments to bank accounts, today, completing the KYC process is a mandatory requirement if you want to avail of any financial product or service. Taking this process, a step further, re-KYC enables banks and financial institutes to remain updated with any changes in your personal information easily. Continue reading to learn more about re-KYC and how it functions.
What is Re-KYC?
Re-KYC is a process wherein banks and financial institutions can remain abreast with a customer's latest personal details and contact information. This ensures that the information a client provides at the time of account opening or opting for a service is not outdated
Reserve Bank of India guidelines dictate that re-KYC should be conducted regularly. Banks are advised to conduct re-KYC based on a risk approach. Thus, they have to categorise customers based on various factors like identity, social and financial status, business activity, etc. they are then classified into the following risk-based categories:
High-Risk Customers: These customers must conduct the re-KYC process once every two years by visiting a bank branch closest to them.
Medium-Risk Customers: These customers are only asked to complete this process once every eight years by visiting a bank branch near them.
Low-Risk Customers: These customers have to complete the process once every ten years and can execute re-KYC online via the following methods:
Internet Banking
Mobile Banking
· Re-KYC link provided on the customers' registered email ID.
· Re-KYC link is provided on the customer's registered mobile number.
· SMS
· ATMs
What is the process for Re-KYC?
The re-KYC process is as given below:
Step 1: You will receive a notification from the bank or financial institution to update your KYC information. Once you do, fill out the re-KYC form.
Step 2: Next, you need to self-attest documents that function as identity and residence proof.
Acceptable identity proof documents include:
Valid passport
PAN Card
E-Aadhaar letter as issued by the Government of India
Driving License
Voter ID
Job Card as issued by NREGA and duly signed by an authorised official
Letter issued by a Gazette officer, with a duly attested photograph. However, this is acceptable only for opening low-risk Basic Savings Bank Deposit Account (BSBDA)
Address proof documents include:
Valid passport
PAN Card
E-Aadhaar letter as issued by the Government of India
Driving License
Voter ID
Job Card as issued by NREGA and duly signed by an authorised official
Letter issued by a Gazette officer, with a duly attested photograph. However, this is acceptable only for opening low-risk Basic Savings Bank Deposit Account (BSBDA)
Identity Card as issued by Central/State Government, Public sector undertaking, any Scheduled Commercial Bank, or any Public Financial Institution.
Step 3: Once you complete your bit of the KYC procedure, it takes around ten days for the process to be completed in its entirety.
With three easy steps, you can ensure that you comply with RBI guidelines and update your KYC information to continue using financial products and services that make your life easier.
Click here to learn more about the KYC process at HDFC Bank.
Wish To Know What is Video KYC? Click here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
