Know Your Customer (KYC) data is documentation and contact information obtained while creating a bank account. According to the RBI’s recommendations, banks may request Re KYC from customers at set periods to keep the data up-to-date, which can be done by the customer by filling out a Re KYC form. For example, if any of your personal or contact information has changed, the Re KYC procedure will update it. This process’s major purpose is to possibly detect and remove illicit activity and fraud across any financial platform.
Re KYC Meaning
According to RBI rules on KYC requirements, banks must update KYC papers in their account holders’ records on a regular basis.
As a result, in addition to the KYC procedure performed at the time of account establishment, account holders must undertake Re KYC and provide the relevant papers at regular intervals to avoid any restrictions being imposed on the account in accordance with standards.
How to Submit Re-KYC Documents:
- Visit your local bank and turn in the fully signed Re KYC form along with a copy of your valid KYC documentation.
- Individual Resident Customers (other than Minors) with an Aadhaar Number and an Original PAN can undergo Video Re KYC (Re KYC via Video Call).
- In the event of no change in KYC information or a change of address, the fully signed self-declaration form will be delivered via email, post, courier, or physical delivery.
- Individual Resident (other than Minor) customers can also email their request for periodic KYC updation(Re KYC) from their registered email ID to the respected bank email, along with a scanned copy of the following documents: duly filled & signed self-declaration form in the prescribed format.
- PAN and a copy of an officially valid document (OVD).
When is Re KYC required?
KYC (Know Your Customer) information is updated when the account is opened. According to RBI guidelines, banks may seek Re KYC at predetermined intervals to keep their records up-to-date. If any of your personal or contact information changes, the bank records will be updated via the Re KYC procedure.
Customer Classification for Re KYC
KYC procedures for specific persons are characterized as follows:
- High-Risk Consumers: For high-risk consumers, banks would update their records every two years. A high-risk consumer must visit their local bank office to provide updated identification, KYC, and address documentation.
- Medium-Risk Clients: For medium-risk clients, the bank will update their information every eight years. A medium-risk consumer, like a high-risk customer, will have to personally visit their bank to submit their documentation.
- Low-Risk Consumers: Banks will execute the update procedure once every 10 years for low-risk consumers. A low-risk customer, on the other hand, may not need to visit their bank in person for Re KYC.
If no address changes occur, a low-risk customer’s KYC verification can be updated using the following methods:
- Banking on the Internet
- Mobile Banking for the Bank
- Re KYC update link sent to the customer’s registered email address
- The Re KYC update link is supplied via the customer’s registered cellphone number.
- SMS-based ATMs
If the address changes, the new address will be obtained via the customer’s registered email address or cellphone number, ATMs, online banking, or mobile application. Within two months, the declared or new address will be validated by an address verification letter, contact point verification, deliverables, and so on.
If the consumer was a minor when their account was opened, Re KYC would be completed when they became a major. Their bank must get a new photograph and ensure that their Customer Due Diligence (CDD) documentation is up-to-date in accordance with current CDD guidelines. If necessary, the bank would conduct a new KYC for such customers.
What does the Re KYC process look like?
Step 1: Complete the Declaration Form
When notified by the bank that their KYC has to be updated, the customer must complete a Re KYC form with their personal information.
Step 2: Documentation
Following that, the client must self-attest copies of approved KYC Identity Verification and address proof, which will be provided with the Re KYC form.
Individual clients can use the following documents:
- E-Aadhaar letter acquired from the UIDAI site/Aadhaar card issued by the government of India.
- Election Card or Voter’s ID Card: Valid Permanent Driver’s License
- NREGA job card, officially signed by a State Government officer, Letter issued by a Gazette officer, with a duly certified photograph of the individual, Acceptable only for creating a low-risk Basic Savings Bank Deposit Account (BSBDA)
Documents acceptable for establishing address:
- Valid Passport (Passport Verification)
- PAN Card
- Permanent Driving License (excluding driving licenses issued by the Maharashtra government)
- Election or Voter ID card (with address)
- E-Aadhaar letter obtained from the UIDAI website or Aadhaar card issued by the government of India
- A NREGA Job Card, lawfully signed by a State Government official, a letter issued by a Gazette officer, and a duly certified image of the individual are only acceptable for opening a low-risk “Basic Savings Bank Deposit Account” (BSBDA).
- Employees must have an identity card issued by the Central or State Government, a public sector organization, a scheduled commercial bank, or a public financial institution.
Step 3: Processing
Once the papers and form are submitted, the Re KYC procedure takes roughly 10 days to complete.
Non-Individual Customers: They are required to physically visit the bank office to submit the completed Re KYC form along with the necessary documentation.
NRI customers: They must provide the Re KYC form and certified papers to the branch by email using their registered email address.
Re-KYC via Video Process:
Individual customers over the age of 18 with a valid Indian address proof can complete the RBI-mandated Re KYC process via video. V-CIP stands for video-based customer identification procedure.
To complete the Re KYC procedure via video, you will need a mobile phone or PC with a camera, microphone access, and an internet connection, as well as your PAN Card and Aadhaar Card. After entering their basic information, a bank representative will do the necessary checks via video interaction and take them through the rest of the procedure.
Doing the KYC procedure via video was just recently made available to all individual customers by a milestone announcement issued by the RBI on May 5, 2021.
IDcentral’s KYC API
IDcentral’s KYC API is a cutting-edge solution that empowers businesses to streamline their Know Your Customer (KYC) processes with advanced features such as liveness detection, biometric authentication, and ID verification.
Liveness detection is a crucial component of this API, ensuring that the person undergoing KYC is physically present and not attempting to use a static image or video for Identity verification. This technology employs facial recognition and movement analysis to confirm the user’s presence in real-time, enhancing the security and reliability of the KYC process. By incorporating liveness detection, businesses can significantly reduce the risk of fraudulent activities and identity theft.
Biometric authentication is another standout feature of IDcentral’s KYC API, allowing businesses to leverage biometric data like fingerprints, facial recognition, or iris scans for user verification. This not only enhances security but also enhances the user experience by eliminating the need for traditional passwords or PINs.
Additionally, the API supports government ID verification, enabling organizations to validate the authenticity of official documents such as passports, driver’s licenses, and national IDs. By cross-referencing the information with government databases and employing advanced algorithms, IDcentral’s KYC API ensures that customers’ identities are accurately verified, helping businesses comply with regulatory requirements while providing a seamless and secure onboarding experience for their users.
IDcentral is the next-generation digital identity platform, that helps businesses across various domains to increase their profitability and reduce risk. IDcentral forays Subex’s vision to expand Digital Trust business beyond its core area of interest ‘Telecom’.