KYC update frequency based on customer risk categories: RBI guidelines explained
Banks regularly ask customers to update their KYC as per RBI guidelines, which categorise accounts by risk level. Union Bank of India has launched a mega campaign across Telangana, offering multiple modes—online and offline—to help customers update their KYC seamlessly
Hyderabad: These days, most customers frequently receive messages from banks requesting them to update their Know Your Customer (KYC) details. While KYC can be updated online or by visiting a bank branch, many still wonder why it is necessary and how often it should be done.
According to the Reserve Bank of India (RBI) guidelines, all banks are required to categorise customers based on risk profiles into Low Risk, Medium Risk, and High Risk categories. This classification primarily depends on the customer’s occupation and transaction patterns.
Customers in the Low Risk category are required to update their KYC details once every 10 years. For Medium Risk customers, the update interval is eight years, while High Risk customers must update their KYC every two years.
To make the process more convenient, Union Bank of India offers multiple modes for updating Re-KYC. Customers can use ATMs, VYOM Mobile Banking, Internet Banking, the Re-KYC portal, the corporate website, WhatsApp banking (by sending “Hi” to 9666606060), or visit Banking Correspondents (BCs) for assistance.
In a press release issued on Wednesday, the bank stated that it was organising a mega KYC update campaign across all its branches in Telangana to facilitate customers in updating their KYC details with ease.
