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RBI Warns Against Frauds In The Name Of KYC Updating

RBI also highlighted that while the Regulated Entities (REs) are required to undertake the periodic updates of KYC, the process of periodic updating of KYC has been simplified to a large extent vide circular dated May 10, 2021.

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The Reserve Bank of India (RBI), on Monday, warned customers against sharing bank account login credentials, personal data and information, copies of know-your-customer (KYC) documents, card information, Personal Identification Number (PIN), password, and One Time Password (OTP), etc. with unidentified persons or agencies.  

The Central Bank in a press release said, "The Reserve Bank of India has been receiving complaints/reports about customers falling prey to frauds being perpetrated in the name of updating KYC. The usual modus operandi in such cases include receipt of unsolicited communication, such as calls, SMSs, emails, etc., by a customer urging him/her to share certain personal details, account/login details/ card information, PIN, OTP, etc. or install some unauthorized/ unverified application for  updating KYC using a link provided in the communication."

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

While giving warning to the public, RBI said that it is cautioned not to share account login details, personal information, copies of KYC documents, card information, PIN, password, OTP, etc. with unidentified persons or agencies. 

"Further, such details should not be shared through unverified/unauthorized websites or applications. In case they receive any such requests, customers are requested to get in touch with their bank/branch," as per the official statement. 

RBI also highlighted that while the Regulated Entities (REs) are required to undertake the periodic updates of KYC, the process of periodic updating of KYC has been simplified to a large extent vide circular dated May 10, 2021. 

"Further, vide circular dated May 5, 2021, REs have been advised that in respect of customer accounts where periodic updating of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of law, etc," it said. 


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