Know Your Customer, or KYC is a requirement that banks, insurance firms, and other financial organisations require to confirm the addresses and identities of potential customers before completing transactions.
According to the Reserve Bank of India’s KYC guidelines, banks must routinely update customer identification documents in their databases of account holders (RBI). Depending on the risk profile of the account holder, this may be brought on by a significant change in the customer’s profile or the kind of transactions in the account.
According to the Federal Bank FAQ on KYC, “KYC means “Know Your Customer”. It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks” services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.”
What is re-KYC?
According to the Union Bank of India website, “Reserve Bank of India has prescribed that customer identification data, including photograph shall be updated and kept on record duly verified at least once in ten years in case of Low Risk Customer, once in Eight years for Medium Risk customer and once in two years in case of High Risk Customers. Such verification shall be done irrespective of whether the account has been transferred from one branch to another branch.
As per the latest tweet by Canara Bank, customers of the bank can follow a few simple steps to finish the re-KYC procedure.
Re-KYC can be completed via mail and SMS (applicable to KYC compiled customers where there is no change in KYC information) .
For example, if 1234567 is your Customer ID, then here is how you can complete your re-KYC, as per the Canara Bank tweet.
How to do re-KYC using mobile number
Send REKYCustomer ID to 56161.
Send SMS as REKYC 1234567 to 56161 from your registered mobile number.
How to do re-KYC through mail
Send REKYCustomer ID as SUBJECT to email@example.com from your registered mail ID.