How to Update KYC Details Online?

E-KYC or online KYC is an effective way to submit your identity and address proof online. It is a standardized way to check the authenticity of customers on a portal by the Indian government. To verify their identity and address, customers of the financial service are required to submit KYC documentation before investing in a variety of financial instruments like fixed deposits, mutual funds, and more

The primary goal is to potentially catch and eliminate illegal activities on any platform. For most portals — be it mutual funds’ investments, brokerage trading platforms, or bank websites — before you create an account, you will be required to carry out your KYC. The Reserve Bank of India has made it mandatory for everyone using these platforms.

When should you update KYC?

Updating KYC details online is very rare, and it is not a very common thing to do. However, it’s possible to encounter a situation where you may have changed your name or address. Similar to how KYC is generally considered a one-time process, so is its update. The scenarios when KYC updates may be required are as follows:

• In case you legally want to change your name then the name on your PAN card, Aadhar card, and latest passport would be different. You need to input your scanned copies of your latest Aadhar/PAN card to get your KYC updated.
• If you change your address by moving into a new home after marriage, moving out of your house, or moving to a whole different city, a lot of your KYC documents like the Aadhar, PAN, Driving License, and Passport would need to be updated. This is when you can use the online portal to make the KYC update.

If you do not change your address or name for a second time, this process is generally considered a one-time way to access your financial history and carry out transactions. KYC update is mandatory in case you have updated your personal details again.

Advantages of updating your KYC

 

• Regulatory Compliance: Frequent updates of KYC are a guarantee of adherence to local laws and regulations, saving financial institutions from legal problems and fines.
• Improved Safety: Up-to-date information about KYC saves the identity from getting stolen and acts as a shield against fraudulent acts. This helps institutions identify a client more effectively.
• Improved Service: Financial institutions, with the new updated KYC data, can offer customized services and products to the customer. This leads to better customer experiences.
• Easier Transactions: Also, smoother transaction processing due to correct and timely information ensures that customers can undergo financial transactions without any hiccups in the process.
• Risk Management: The next advantage is risk management in terms of money laundering and terrorist financing.
• Access to Financial Services: Updated KYC may be required for access to certain financial services or products so that every new opportunity can be availed of.
• Trust and Transparency: Maintaining updated KYC information helps in building trust between the clients and the financial institutions, adding transparency to the business relationship.

Things to keep in mind about updating KYC

• Frequency: Update your KYC information on a regular basis in case variation in personal information or financial innformation takes place.
• Documentation: Carry valid identification, proof of address, and other relevant documents that the institution may require.
• Deadlines: In order not to incur penalties or disrupt your services, be informed about deadlines that may have been instituted by the financial institution regarding KYC updates. This may be online or offline; check with the institution for convenience.
• Information Accuracy: All information provided should be accurate and current to avoid all issues associated with your accounts.

Conclusion

Both online and offline KYC verification procedures take around one week to be authenticated. The online KYC registration may take a much shorter time, but this can vary based on a slew of factors, such as whether or not there were any errors, inconsistencies, or ambiguities in the application form. Hence, your updated information, depending on the portal carrying out KYC, may take longer than usual to reflect. However, ensuring the form is correctly filled with all the latest information can expedite this entire process.

Frequently Asked Questions

How to fill up the KYC details update form?

1. The first thing you would need to do is furnish address proof that is self-attested when there is no change in address.
2. Then you need to look for the address proof and identity, which are acceptable.
3. Following that, in the absence of a valid address proof, the address proof of a close relative who resides with the account holder might be provided along with a declaration. The declarations should entail the account holder being a close relative and residing in the given address.
4. Separate forms are needed for the folks who are joint holders.
5. A self-attested copy of the Aadhar card will be needed as well. Please make sure that the account number mentioned is linked with the Aadhar card.
6. You may contact the nearest bank for further details.

What are KYC updates?

‘Know your client’ is basically the procedure of evaluating a customer’s identity. KYC update basically means making a few changes to your KYC documentation, if there are any. For example, if you changed your address, you would need to update it on KYC.

Can we fill KYC form online?

RBI has made it mandatory for folks to update their KYC details frequently in order to maintain much-needed consistency across various industries and safeguard the financial system. To help make the procedure faster, RBI has made it accessible for individuals to update KYC details online.

How do I verify my KYC online?

To verify your KYC details online, visit the official website of a KYC Registration Agency (KRA). Log in using your registered mobile number, enter the OTP received, and upload a self-attested copy of your e-Aadhaar to complete the process.

What documents are required for KYC?

The documents needed to update KYC typically include a government-issued photo ID (like a passport or driver’s license), proof of address (such as utility bills or bank statements), and possibly income proof (like salary slips or tax returns), depending on the institution’s requirements.

Can I update my KYC online?

Yes, most banks and other financial organizations allow you to amend your KYC details online. Most of them allow it through their own websites or mobile apps by uploading the required document electronically.

What happens if KYC is not updated?

In case your KYC is not updated, you may be restricted from accessing your account or even conducting transactions. Sometimes, your account will be frozen until you update the information to comply with the regulations.

How long is KYC valid?

The validity of KYC varies by institution and by jurisdiction, though it would typically remain valid for one to three years. At times, the bank requests periodic updates or re-verifications of your KYC information to maintain compliance in line with the regulatory obligations and to maintain the accuracy of the records.