SBI Will Not Freeze Accounts if KYC Not Updated; Customers Need Not Visit Bank

In a bid to provide relief to thousands of customers amid coronavirus pandemic, the State Bank of India said on Saturday that the bank will not ask the customers to visit the branches for updating Know Your Customer (KYC) details. The bank customers can send the necessary details via post or registered email to update their KYC norms.

“In view of the resurgence of COVID-19 cases along with various lockdown in place in many states, it has been decided that KYC updation shall be carried out on the basis of documents received through post or registered email,” India’s largest bank said in a tweet. Customers will not be required to personally visit the branch for the purpose of KYC updation, the lender further mentioned.

SBI will not freeze the accounts if the KYC documents are not being updated till May 31, the bank assured.”Partial freezing of CIFs due for KYC updation will not be done till 31st May 2021,” the lender added.

Know Your Customer is a process where banks obtain information about their customers’ identity thereby ensuring that bank services are not being misused. Banks periodically update their customers’ KYC details. To update the KYC documents, SBI customers need to submit any of the following documents: 1) Passport, 2) Voter’s Identity Card, 3) Driving Licence, 4) Aadhaar Letter/Card, 5) NREGA Card, 6) PAN Card.

For minor customers below the age of 10 years, the Identity Document (ID) proof of the person who will operate the account, is required to be submitted to the bank. Minors operating the bank account themselves, can produce any of the KYC documents for identification or address verification.

Non-resident Indians (NRIs) can submit a passport or residence visa copies to complete KYC norms. The residence visa copies should be attested by foreign offices, notary, Indian Embassy, officers of correspondent banks whose signatures are verifiable through an authorized branch of the SBI, the lender mentioned earlier.

Last year, the Reserve Bank of India allowed banks, lending institutions and fintech companies to onboard customers remotely through video-based KYC. Customers no longer have to visit branches or offices for physical documentation and verification of KYC details. The central bank permitted the use of a live photo of the customer and his or her officially valid document as a proof of identification. It also mandated for the geo-tagging of the customer’s video to ensure that they are located within the country.