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Banks regularly ask customers to update their Know Your Customer (KYC) details. Missing the deadline can affect account operations; so it is important to understand the process.
KYC helps banks verify customers’ identities and addresses. It also helps prevent financial fraud, identity theft and money laundering by keeping customer information updated.
Banks generally send reminders before taking action against accounts with pending KYC updates. Missing a deadline does not mean your account will be closed immediately.
If customers fail to update KYC despite reminders and advance notice, banks may close their accounts after following the prescribed process.
RBI’s KYC Directions require banks to periodically update customer records. The rules also explain how banks should handle accounts when customers fail to complete KYC.
Customers may update KYC through Netbanking, mobile banking, registered email, Aadhaar-based e-KYC or Video-based Customer Identification Process (V-CIP), depending on their bank’s requirement.
Do not click suspicious links claiming to update your bank KYC. Use official bank websites, apps or branches to submit documents and protect your account from fraud.