RBI warns against fraud in KYC updation

The central bank has received many complaints/reports about customers falling prey to frauds being perpetrated in the name of KYC updation.

Sep 14, 2021 01:09 IST India Infoline News Service

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The Reserve Bank of India has cautioned customers about frauds in the name of KYC updation. The central bank has received many complaints/reports about customers falling prey to frauds being perpetrated in the name of KYC updation.

In a statement on Monday, RBI said that the usual modus operandi in such cases include receipt of unsolicited communication, such as calls, SMSs, emails, etc., by customer urging him/her to share certain personal details, account/login details/ card information, PIN, OTP, etc. or install some unauthorised/ unverified application for KYC updation using a link provided in the communication.

Further, RBI stated that such communications are also reported to carry threats of account freeze/ block/closure. Once a customer shares information over call/message/unauthorised application, fraudsters get access to the customer’s account and defraud him/her.

That said, RBI cautioned members of the public not to share account login details, personal information, copies of KYC documents, card information, PIN, password, OTP, etc. with unidentified persons or agencies. Further, such details should not be shared through unverified/unauthorised websites or applications. In case they receive any such requests, customers are requested to get in touch with their bank/branch.

Also, RBI clarified that while the Regulated Entities (REs) are required to undertake periodic updation of KYC, the process of periodic updating of KYC has been simplified to a large extent vide circular dated May 10, 2021. Further, vide circular dated May 5, 2021, REs have been 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 shall 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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