Monday, 24 February 2020

SBI Will Block Your Bank Account If KYC Not Updated

State Bank of India (SBI) has issued public notice to the SBI customers in regard to their incomplete KYC. The lender has asked all such SBI account holders to complete their KYC in order to avoid inconvenience in the future. The bank also said in the public notice
that if an SBI customer fails to complete one's KYC by February 28, 2020, then it will have no choice but to block such SBI accounts till the KYC is completed.

Note that the bank has been sending text messages and e-mails to such SBI account holders whose KYC is incomplete in order to remind them to complete the process as soon as possible. Hence, if you have received such a mail or text message on your mobile phone, you are advised not to ignore this as if you fail to complete the KYC, your account may be blocked.

Who needs to update KYC by February 28:

When a Twitter user asked SBI if every customer is required to update KYC by 28 February 2020, the bank replied saying that tt is applicable to those whose KYC updation is due. In another response, the bank said, "KYC details need to be updated periodically and the periodicity depends upon the risk categorisation of your account. When the same is due, you will be notified by the bank".

KYC guideline:

According to the provisions of Prevention of Money-Laundering Act, 2002 and the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005, as amended from time to time by the Government of India and notified by the Government of India, all operating Indian banks are required to follow certain customer identification procedures while undertaking a transaction either by establishing an account-based relationship or otherwise and monitor their transactions, as stated on the Reserve Bank of India (RBI) website. 

This RBI guideline basically says that all Indian banks are required to update their KYC by February 28, 2020, and tell their customers that their KYC is incomplete or due. Failing to do that, banks will have to face heavy penalties.

How to update SBI KYC?

Those SBI customers, who have received a message or mail from the State Bank of India saying they need to update their KYC, have to visit the SBI branch near them and provide a copy of any of the address and identity (ID) proof that is accepted for the KYC update. The SBI net banking users can do their KYC online also. They need to log in through SBI net banking and update the required KYC in a few minutes.

KYC Documents:

1. For Individuals
Individuals (Documents acceptable as proof of identity/address)
Passport
Voter's Identity Card
Driving Licence
Aadhaar Letter/Card
NREGA Card
PAN Card
Any one document towards proof of identity and proof of address (either permanent or current )

2. Minors
If minor is less than 10 years of age, ID proof of the person who will operate the account to be submitted. In cases where minor can operate the account independently, KYC procedure for identification/address verification as in the case of any other individuals would apply.

2. NRIs
Passport and Residence Visa Copies, duly attested by 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.

3. Small Accounts: Small account' means a savings account in a banking company where

the aggregate of all credits in a financial year does not exceed rupees one lakh
the aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand
the balance at any point of time does not exceed rupees fifty thousand)

As per SBI website, submission of a self-attested photograph and affixation of signature or thumb impression before the officer of the bank who is authorized to approve opening of accounts who will certify under his signature that the person opening the account has affixed his signature or thumb impression, as the case may be, in his presence.

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