RBI warns bank customers against frauds in the name of KYC updation

The Reserve Bank of India (RBI) today said it has been receiving complaints about customers falling prey to frauds being perpetrated in the name of updating KYC and warned customers against them.

It said the usual modus operandi in such cases include receipt of unsolicited communication such as calls, SMSs, emails by customer urging to share certain personal details.

These details could be anything from account information to login details or card information, PIN, and OTP. Customers could also be asked to install some unauthorised or unverified application for KYC updation using a link provided in the communication.

"Such communications are also reported to carry threats of account freeze or block or closure. Once customer shares information over call or message or unauthorised application, fraudsters get access to customer's account and defraud him/her," the RBI said in a statement.

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Asking users to be precautious, the central bank said people should not share account login details, personal information, copies of KYC documents, card information, PIN, password, and OTP, etc, with unidentified persons or agencies.

The RBI also said that people should not share their details through unverified or unauthorised websites or applications. On receiving any such requests, the customer should get in touch with the bank branch, it added.

While regulated entities need to undertake periodically update KYC, the process has been simplified to a large extent, RBI said.

The RBI has advised that in respect of customer accounts, where periodic updation of KYC is due and pending as on date, "no restrictions on operations of such account should be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of law, etc".

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