Re-KYC: Meaning, procedure & document submission

Understanding re-KYC

The full form of re-KYC is re-Know Your Customer. It is a mandatory procedure where banks periodically revalidate customer information. Re-KYC essentially involves updating your details in the bank's records to ensure that the records remain current and compliant with Reserve Bank of India (RBI) regulations.

Why is re-KYC required?

• It ensures regulatory compliance with RBI guidelines.
• It helps maintain updated customer records, capturing any changes in profile information like address or contact details.
• It facilitates enhanced due diligence for accounts showing unusual transaction patterns.
• It strengthens banking security by verifying the legitimacy of transactions, particularly when accounts receive unusually large funds.

Who needs to do re-KYC?

• Regular Savings Account holders (typically every 10 years for low-risk customers).
• Accounts showing unusual transaction patterns.
• Accounts with incomplete initial KYC.
• Dormant accounts reactivated after extended inactivity.
• Minor accounts when the holder attains majority.
• NRI customers must complete re-KYC online with additional documentation proving their status.

How to submit re-KYC documents?

• Online method: You can submit re-KYC documents through Axis Bank's Internet Banking or mobile banking app ‘open’.
• Mail or courier: Re-KYC documents can be submitted via post or courier to your bank's official address.
• Physical submission: Submit re-KYC documents physically at the nearest bank branch.

Customer classification for re-KYC

• Low-risk: Customers with stable incomes and simple financial profiles, such as senior citizens with pensions, can submit re-KYC every 10 years.
• Medium-risk: Customers who have a moderate level of financial activity and earn a stable income need to submit re-KYC documents more frequently than low-risk customers.
• High-risk: Customers who engage in complex financial transactions need to update their KYC most frequently. Customers from specific geographical regions are also classified as high-risk customers.

Re-KYC process

• Receive re-KYC request from Axis Bank via SMS, email, or call.
• Keep valid self-attested ID and address proof documents ready.
• Visit the nearest Axis Bank branch to submit the documents.
• Senior citizens may email documents to the branch (check eligibility).
• Some branches may accept re-KYC via post, confirm with your home branch.
• Fill out the re-KYC form if requested by the bank.
• Bank verifies documents and updates your KYC status.

Consequences of not completing re-KYC

• Temporary freezing of your account.
• Restrictions on withdrawals, purchases, and transfers.
• Limitations based on your bank's policies.

Tips for a smooth re-KYC process

• Monitor bank communications regularly.
• Maintain updated document copies.
• Utilise digital re-KYC process if possible.
• Keep your contact information current.

Conclusion

Regular re-KYC verification plays a vital role in maintaining banking system integrity. By understanding and promptly completing your re-KYC requirements, you ensure uninterrupted access to banking services while contributing to a secure financial ecosystem.

Also Read: How to link your Aadhaar card with your bank account

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.