Bank account stopped because KYC information was not updated? what to do to activate it

Keeping a bank account active is essential for managing one’s finances, but doing so comes with obligations, such as updating your KYC (Know Your Customer) information. Your bank account risks suspension if you don’t comply. We will walk you through the process of reactivating your bank account in this article if it has been suspended as a result of KYC non-compliance.

Understanding KYC and Its Importance

Financial institutions, particularly banks, must conform to KYC regulations in order to confirm the identity of their customers. Its goal is to stop fraud, money laundering, and other illicit actions. KYC compliance entails giving accurate personal information and keeping it updated as often as your bank requests.

The Reserve Bank of India (RBI) mandates that banks in India conduct re-KYC processes on a regular basis to update their clients’ KYC (Know Your Customer) information. The RBI’s risk categories for banking customers decide how frequently this process occurs.
Regulated entities (RE) are required to update KYC information in compliance with the RBI’s standards, which advise them to take a risk-based approach. This implies that the level of risk associated with each customer determines the intensity and frequency of KYC updates.

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High-Risk Customers: Banks are required to do re-KYC at least every two years for customers who fall into the high-risk category. This means that high-risk consumers must update their KYC information every two years, starting from the date the account was opened or the latest update.

Customers with a medium level of risk are subject to a new KYC procedure every eight years. This offers some flexibility while preserving compliance by allowing medium-risk consumers to update their KYC information less regularly.

Customers at Low Risk: Customers at low-risk benefit from the longest gaps between re-KYC procedures. Once every 10 years, they must update their KYC information. This extended duration takes into account the fact that low-risk clients often have a more steady and consistent financial profile.

Also Read: You can update kyc online without Going to the bank

The RBI’s instructions seek to strike a balance between protecting the banking system’s security and lessening the administrative burden on clients. Banks can more effectively spend their resources and concentrate their efforts on those clients who pose larger risks by adopting a risk-based approach and customising the re-KYC frequency to the customer’s risk profile.

In order to update the Bank KYC online, you need to have the following documents with you:

What Requires Documents for Update KYC

  • Identify Proof & Adress Proof
  • Addhaar Card
  • Pan Card
  • NEREGA Card
  • Driving Licence
  • Passport

NRIs

  • Foreign offices
  • Notary Public
  • Indian Embassy
  • officers of correspondent banks whose signatures are verifiable through an authorized(A/B category Forex handling branch) branch of the Bank

SBI (State Bank Of India)

To update your KYC (Know Your Customer) details with the State Bank of India (SBI), you can follow these steps:

Visit an SBI Branch:

  • Locate the nearest SBI branch in your area. You can use the bank’s website or mobile app to find branch locations.
  • Ask for the KYC Update Form:
  • Submit the Form and Documents:
  • Carry KYC Documents:
  • Take the original and photocopies of the KYC documents you need to update. Common KYC documents include a valid government-issued photo ID (like Aadhar card, passport, voter ID, or driver’s license) and address proof (utility bills, rental agreement, etc.).
  • You may also need a recent passport-sized photograph.
BOI (Bank Of Baroda)
  • Visit a Bank of Baroda Branch:
  • Locate the nearest Bank of Baroda branch in your area. You can use the bank’s website or mobile app to find branch locations.
  • To update your KYC (Know Your Customer) details with Bank of Baroda, you can follow these steps:
  • Carry KYC Documents:
  • Ask for the KYC Update Form:
  • Fill Out the KYC Update Form:
  • Submit the Form and Documents:

If you are NRI you need these documents to update KYC in the bank

1. Foreign offices
2. Notary Public
3. Indian Embassy
4. officers of correspondent banks whose signatures are verifiable through an authorized(A/B category Forex handling branch) branch of the Bank

In order to update the Bank KYC online, you need to have the following documents with you:

1. Identify Proof & Adress Proof
2. Addhaar Card
3. Pan Card
4. NEREGA Card
5. Driving Licence
6. Passport

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