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Reserve Bank of India cautions against frauds in the name of KYC updation

The central bank has been receiving complaints about customers falling prey to frauds being perpetrated in the name of KYC updation.

Reserve Bank of India | KYC | Online fraud


Crony capitalism has built up slowly in India, emerging as a Frankenstein’s monster a decade and a half after politicians began to unchain the private sector in the early 1990s

Banking regulator (RBI) on Monday cautioned people not to share account login details, personal information, copies of documents, card information, PIN, password and OTP with unidentified persons or agencies.

"Such details should not be shared through unverified/unauthorised websites or applications. In case they receive any such requests, customers are requested to get in touch with their bank/branch," said the RBI.

The central bank has been receiving complaints about customers falling prey to frauds being perpetrated in the name of updation.

The usual modus operandi in such cases include receipt of unsolicited communication, like calls, SMSs and emails by customer urging him/her to share certain personal details, account/login details/card information, PIN and OTP or install some unauthorised/unverified application for updation using a link provided in the communication.

Such communications are also reported to carry threats of account freeze/block/closure. Once customer shares information over call/message/unauthorised application, fraudsters get access to customer's account and defraud him/her.

"It is also clarified that while the regulated entities are required to undertake periodic updation of KYC, the process of periodic updation of KYC has been simplified to a large extent," said the RBI.

"Regulated entities have been advised that in respect of customer accounts where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account will be imposed till December 31 for this reason alone unless warranted under instructions of any regulator/enforcement agency/court of law.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, September 13 2021. 18:05 IST