Скачать или смотреть Why Banks insist on KYC Up-dation?

When banks ask us to up-date our KYC in respect of our accounts, we comply with by furnishing necessary documents.

Some of us may not be aware as to why banks seek such up-dation.
The reasons/rationale can be found in ‘RBI’s Master Direction (MD)-KYC Directions, 2016’.

URL of MD:
https://website.rbi.org.in/web/rbi/-/notif...

At the time of opening accounts, banks categorize customers into low, medium and high risk (Chapter IV-Paragraph no:12).

Parameters for such categorization include customer’s identity, social/financial status, nature of business activity, customer’s business and their location and many other factors (Chapter IV-Paragraph No:12).

It is important to note that risk-categorization is internal to the bank and confidential. So, it will not be disclosed to the customer.

Based on the risk category, periodic up dation of KYC has to be carried out.

For low, medium and high-risk customers, up dation should be carried out at least once in 10 years, 8 years and 2 years respectively (Chapter V-Paragraph No:38).