How to Update KYC Details Online?

How to update the KYC details

E-KYC or online KYC is an effective way to submit your identity and address proofs 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 platforms. For most portals — be it mutual funds’ investments, brokerage trading platforms, and 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.

What is KYC?

When should you update KYC?

Updating KYC details online is very rare as it is not a very common thing to do so. 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 is 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 shifting 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 as 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.

The importance of KYC

How to update KYC online?

Updating your KYC online is a simple process that can be done without the hassle of visiting a kiosk in person. The process is as follows:

  • Log in to the KYC online portal.
  • Look out for an ‘Update KYC’ button in the settings on that portal.
  • Click on the button and it will open up the set of KYC preferences.
  • Updating whatever needs to be changed is accompanied by uploading the latest scanned copies of relevant documents for changing your name or address.
  • Before your information is saved and goes in for verification, it is required to confirm a one time password that will arrive at your registered mobile number or email.
  • Once the OTP is correctly entered, hit the ‘Submit’ button. Your information is now under review and you will be notified about whether your KYC verification is completed error-free within the next few days.

Advantages of updating your KYC

Things to keep in mind about updating KYC

Once the latest documents are uploaded as proof, the template for the documents are identified as valid and examined against various checks to ensure that the document has not been tampered with in any manner. This is the final layer of scrutiny that a person’s application goes through for the digital KYC process.

Offline KYC updates are not as common as online KYC updates because websites and other portals notify individuals when their personal details do not match their current ones. You need to update your KYC before proceeding with any financial transaction. An offline update of KYC would involve visiting a mutual fund house, bank, or KYC kiosk in person with originals and copies of your latest documents.

Final Words

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.

KYC allows the banks to acknowledge their customers and their financial dealings to assist them better and tackle the risks appropriately. Every individual needs to update KYC details frequently, as it is a must for security purposes. KYC is verifying and identifying a consumer's identity through a reliable and independent source of documents, information, or data.

To verify the identity of individual customers, banks or financial institutions will obtain a recent photograph, the customer's identity information, and address proof. Similar data must also be given to both mandate holders and joint holders.

To evaluate the identity of non-individual customers, banks will require the data of identification to check the operating address, the legal status of the entity, and many more.

Additional information is needed on the kind of business/employment that the individuals expect or undertake and the aim of opening an account with the bank.

'Know your client' is the procedure of evaluating a customer's identity. KYC guidelines aim to protect banks or any other financial institutions from being used for money laundering activities or any other criminal activities. Here are some of the benefits of KYC details updation:

  1. It eliminates the frauds that come from hiding identities.
  2. It stabilizes the investments in the nation, making financial frameworks less risky and more trustworthy.
  3. It allows the lenders to assess any sort of dangers or risks and evaluate the previous financial history of borrowers.
  4. It prevents many anti-social activities, such as money laundering.
  5. Finally, it allows the NBFCs and banks to lend more, which increases their profits.

Frequently Asked Questions Expand All

  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.

'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.

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.