SBI warns customers against KYC fraud; gives tips on account safety

State Bank of India has warned its customers against KYC (know your customer) frauds. It said that the threat is very much real and has proliferated across the country. It also suggested ways to keep one's account safe from such frauds.

"KYC fraud is real, and it has proliferated across the country. The fraudster sends a text message pretending to be a bank/company representative to get your personal details," it said, urging customers who have been duped to report such cyber crimes.

The lender offered three basic safety tips:

1. Think before you click any link

2. Bank never sends links to update KYC

3. Don't share your mobile and confidential data with anyone

This alert comes as SBI recently decided to permit acceptance of documents for KYC update through mail or post due to the difficulties faced by customers amid local lockdowns.

The Reserve Bank of India had also asked banks and other regulated financial entities not to impose punitive restrictions against customers for failure to update KYC till December 31.

KYC or know your customer are measures taken by the banks to ensure that their customers are genuine. "Please refer to Section 38 of the Master Direction on KYC dated February 25, 2016, in terms of which Regulated Entities (REs) have to carry out periodic updation of KYC of existing customers. Keeping in view the current COVID-19 related restrictions in various parts of the country, REs are advised that in respect of the customer accounts where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of law, etc. Regulated entities are also advised to continue engaging with their customers for having their KYC updated in such cases," said an RBI notification dated May 5. 

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