Banks urge old customers for resubmission of KYC documents

If you have an old savings account with your bank, chances are you will have to do resubmit your Know Your Customer (KYC) documents again. If your relationship with the bank started recently, such an exercise may not be required.

Some of the banks have already started sending emails to such old account holders. “It’s only the old accounts, who are not KYC compliant who need to resubmit the documents. Such a customer might have done their KYC years back, and hence it’s becomes important that we have their latest details,” a bank official, who is not permitted to speak to media, said. After all, there is a good possibility that your personal details (like your address) might have changed over the years.

[caption id=“attachment_709172” align=“alignleft” width=“380”] KYC not only enables the banks to know their customers, but also prevents money laundering by fraudsters. Moneycontrol.com[/caption]

Here’s a sample of the email sent by a private sector bank:

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This is with reference to the RBI Guidelines for Re-submission of KYC documents for your ABC Bank Account. We request you to kindly submit the following documents at your home branch or any of your nearby ABC branch.

Requesting you to kindly submit the above documents on or before the 20th of April 2013 with below attached KYC Updating form.

Documents: According to the email, the documents which you need to resubmit are as follows.

1. Self attested copy of your Permanent Account Number (PAN).

2. Self attested proof of address.

3. Passport size photograph

4. Re-KYC form duly signed will be provided at our branch or our executive visiting you and is also attached in this email.

The banker told Firstpost that the customer does not even have to submit the documents at his home branch. He can submit the documents at any branch in any city.

Looks like the Cobrapost sting is spreading. After the expose on money laundering at three big banks, the Reserve Bank of India seems to be on a drive to take preemptive measures to stem such practices.

Can’t resubmit the KYC documents in time: But what if for some reason the customer is not able to submit the documents in time? The banker said, “In such a case, we have not received any instructions from the bank, to withhold certain facilities on the account as of now.”

KYC not only enables the banks to know their customers, but also prevents money laundering by fraudsters. The RBI has asked banks to strictly adhere to KYC norms, to ensure the true identity of the consumer, source of finds and ownership of the accounts. HDFC Bank along with a few PSU banks have already sent such emails to their customers.

What you should do: We suggest you do the paperwork as soon as possible. Though there no signals that banks will limit certain facilities on your accounts, you never know what might happen in the future. Hence, better be safe than sorry.