What Are The Different Ways To Update A KYC Online?
KYC, also known as Know Your Customer is a method of periodic checking of the customer's identity and also learning about the customer's financial status. The RBI (Reserve Bank of India) suggests that every individual must complete their customer onboarding KYC for availing of the services of a financial organisation in the country.
By setting up a KYC method, one can open bank accounts, make wallet transactions, invest in mutual funds, etc. Earlier this method required the customer to visit the branch physically. But now, with the digital way, the process of KYC has become more hassle-free. mandatory check to authenticate the identity of the customer and prevent financial fraud.
When should you update your customer onboarding KYC?
The KYC information provided by you consists of all your latest details. In case there is a change in any of the personal information, like address or phone number, one needs to update it immediately. This change should also be notified to the bank so that the KYC can be updated. Thanks to digital KYC, updating such information is now much easier.
According to the guidelines set by RBI, it is mandatory for a person to update KYC to reduce the pressure on high-risk, medium-risk, and low-risk customers. The parameters of such risks depend on the location of the customer, the turnover, the payment methods, the social status, etc. For every individual, the timelines for updating documents vary.
· KYC updation for high-risk customers: This updation should be done every 2 years.
· KYC updation for medium-risk customers: This updation should be done every 8 years.
· KYC updation for low-risk customers: This should be done every 10 years.
Documents required for the periodic updation of KYC
While updating the KYC, a set of documents is very important. These documents prevent the occurrence of any KYC fraud. Here is a list of all the documents that are accepted for the KYC updation.
What are the steps to update KYC online?
Given below are the steps to update digital KYC online.
Step 1: The address proof and the identity proof should be submitted to respective banks through email or post. The email, via which the documents are forwarded should be the registered email address.
Step 2: Do not update the customer onboarding KYC if the process is already done. Send the documents only if they are due in your account. The documents can include any one of the identity proofs given above.
Step 3: In case the account belongs to a minor, who is less than 10 years of age, an ID proof consisting of the details of the person who is managing the account is mandatory. These documents are required to avoid KYC fraud.
Step 4: In case the person is an NRI, the documents like a passport and residence visa are a must. Also, self-attested copies by foreign offices, the Notary Public, the Indian Embassy, and Officers of correspondent banks are necessary.
Step 5: If the account is small, the credits for the financial year do not exceed ₹ 1 lakh. This means, for every person availing the customer onboarding KYC can withdraw or transfer money for ₹ 10,000 every month. Even the balance should not exceed ₹ 50,000.
Every small account requires the submission of a self-attested photograph or the affixation of a signature (can also be a thumb impression). If the person is updating KYC offline, this entire process should be done before the bank officer who has authorised the opening of the accounts.
