Know Your Customer ( KYC) is a process where banks obtain information about their customers’ identity thereby ensuring that bank services are not misused.
Amid the second wave of Covid-19, State Bank of India (SBI) has decided to let its customers update their KYC (Know Your Custoner) details from the comfort and safety of their homes. SBI has taken the decision in view of the lockdowns introduced by many states to break the chain of Covid-19 infections.
"Important announcement for our customers in view of the lockdowns in place in various states," country's top lender tweeted along with the announcement.
If you are an SBI customer than you can now update your KYC details and send it to the bank via email or through the postal service.
"In view of difficulties faced by customers due to local lockdown induced by the second wave of COVID-19, State Bank of India (SBI) has decided to permit acceptance of documents for KYC updation through mail or post. Customers will not be required to visit the branch for the purpose of KYC updation. Please ensure that partial freezing of CIFs due to KYC updation is not done up to May 31, 2021," SBI informed its customers.
Know Your Customer ( KYC) is a process where banks obtain information about their customers’ identity thereby ensuring that bank services are not misused. The KYC procedure is used when bank customers open accounts. Periodic updation has to be carried out at least once every two years for high risk customers, once eight years for medium risk customers and once in every ten years for low risk customers.
The move is expected to be followed by other public sector lenders.