RBI issues important notice to bank customers against frauds in the name of KYC updation

The RBI has provided very important information to all bank customers. With the rise of digital payments in the country, the incidence of fraud is also on the rise. In such a scenario, the RBI has issued a warning to protect consumers from fraud.

The RBI has tweeted that it is receiving complaints that bank customers are being cheated in the name of updating KYC (Know Your Customer-KYC). Fraudsters are adopting new methods for this. You use your card very carefully. The RBI said do not share ATM / Debit card information with anyone.

The usual modus operandi in such cases include receipt of unsolicited communication, such as, calls, SMSs, emails, etc., by customer urging him/her to share certain personal details, account / login details/ card information, PIN, OTP, etc. or install some unauthorised/ unverified application for KYC 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.

RBI said people should not 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/unauthorised websites or applications. In case they receive any such requests, customers are requested to get in touch with their bank/branch.

It is also clarified that while the Regulated Entities (REs) are required to undertake periodic updation of KYC, the process of periodic updation of KYC has been simplified to a large extent, said RBI. It laos advised REs 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 shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of law, etc.

RBI cautions against frauds in the name of KYC updationhttps://t.co/rg6eEb56h5

— ReserveBankOfIndia (@RBI) September 13, 2021