SBI account holders! Don't ignore SMS on updating your KYC

The country's largest lender, State Bank of India, seems to have stepped up its Know-Your-Customer (KYC) compliance drive. It has been sending its customers SMS alerts asking them to update their KYC in line with the RBI's norms. It's important to pay heed to such messages sent out by any bank - failure to comply with KYC requirements could lead to your bank account getting partially frozen - which affects debit transactions - and subsequently shut down completely.

Not adhering to KYC norms can also lead to heavy penalties being slapped on the offending banks. For instance, last November, the RBI had imposed a penalty of over Rs 3 crore each on Deutsche Bank and Jammu and Kashmir Bank for non-compliance of various norms, including asset classification and KYC. Clearly, SBI wants to avoid a similar fate.

The KYC details basically enable banks to understand their customers and their financial dealings better, which in turn help them manage their risks. First issued in the second half of 2002, the norms were applicable only to first-time account holders. Since 2004 even existing customers have been brought into the net, and hence the need for periodic KYC updation. The RBI, moreover, has periodically updated its KYC guidelines - the latest effort was in April 2018 - to give it more teeth.

So how does one update KYC details? Bank account holders just need to visit the nearest branch with a self-attested copy of any of the following identity and proof of address (either permanent or current) documents:

• Passport
• Voter's Identity Card
• Driving Licence
• Aadhaar Letter/Card
• NREGA Card
• PAN Card

In case of joint accounts, both account holders have to submit their KYC details. Other options for proof of address, especially if you have recently changed homes, include telephone bills (not older than three months), electricity bills (not older than six months), ration card and a certificate by government officials.

Only in the case of minors below 10 years of age, identity and address proof of the person who will operate the account needs to be submitted.

KYC details are also mandatory for other financial transactions such as mutual fund investments, making PF withdrawals, digital wallets and more.

(Edited By Sushmita Choudhury)

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