RBI warns against fraud in KYC updation: 'Do not use unverified application or links'

The Reserve Bank of India (RBI) has warned customers not to share account login details, personal information, copies of KYC documents, card information, PIN, password and OTP with unknown persons or agencies. In a statement, the RBI strictly maintained, "Such details should not be shared through unverified or unauthorised websites or applications. In case they receive any such requests, customers are requested to get in touch with their bank or nearest branch."

The central bank has been receiving grievances regarding consumers falling prey to scams being executed in the name of KYC up-gradation. The particular technique used by fraudsters in such cases includes receipt of unsolicited communication like calls, SMS and emails by customers urging him/her to share account information, login details, card information, PIN and OTP or install some authorised/unverified application for KYC updating using a link provided in the communication. According to the RBI, such communications are also reported to carry threats of account freeze, block or closure. Once the customer shares information over calls or messages, the fraudster gets access to the customer's account and eventually defrauds him.

Simplified process of periodic KYC updation

"It is also clarified that while the regulated entities are required to undertake periodic updation of KYC, the process of periodic updation of KYC has been simplified to a large extent," said the RBI in a statement. "Regulated entities have been advised 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 will be imposed till December 31 for this reason alone unless warranted under instructions of any regulator, enforcement agency or court of law," added the RBI.

The RBI is India's regulatory body for banks under the aegis of the Ministry of Finance, Government of India. It is responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system. It also takes account of the country's major payment system and works to promote its economic development. The Bharatiya Reserve Bank Note Mudran is one of the specialised divisions of the RBI through which it mints Indian banknotes and coins.

Inputs: ANI

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