Re-KYC: Importance, Form Details, Documents Required
Re-submitting KYC documents are often requested by the banks when an account is being held inactive for a longer period or when there are too many or too less changes in the deposits or when the account is very old. That is depending on the risk category of the customer, banks might ask to redo KYC formalities so that they can have their database updated with the latest details of the customers. And banks do this, in order to comply with the RBI guidelines and this is a very common process.
So if you think that carrying out too many transactions from different sources or move to a different city or country and keep account inactive then resubmission of KYC documents would be required. Banks will send you notification via E-mail or letter to resubmit KYC documents.
Objective of asking for re-KYC benefits both the entity viz. bank and customer as follows:
- Prevents money laundering
- Any type of fraud or irregularity
- Safeguard financial transactions of the person
Re-KYC declaration form and mandatory documents:
Re-KYC form is very simple which can be obtained from the bank or by scanning the documents and uploading the same on the bank’s website (if the facility is available). Banks can also send the form to their customer’s home. and here are the common details required to be filled in the banks:
- Customer ID
- Account Number
- Personal details and address – Name, address, contact number
- Occupation and income details – Whether salaried, business, self employed, housewife, student, company name, source of income, residence type, gross annual income, nature of business
- Address and identity proof. Self attested.
- You also need to affix one photograph and sign the form.
- If the account is hold jointly, then each individual has to fill the form.
Once the customer completes all the mandatory documentation and other details, banks will verify the same and take minimum 7 working days for processing the request.
In what scenario, Re-KYC is not required when:
- You move to another city or change residence
- Maintain the account actively
- Account is opened newly
- Have taken any type of loan such as personal/car/home etc.
- Have opened FD or RD account with the bank
Although failure in re-submitting KYC documents does not mean that account will be sealed or closed. There is as such no guideline set by the RBI. Many banks viz. ICICI bank, HDFC bank, Axis bank, IndusInd and others have started asking their customers to redo KYC.