How to Update KYC Details: Online and Offline Process

source: processmaker

In the year 2002, RBI (Reserve Bank of India) initiated KYC or Know Your Client, a mandatory verification check for financial institutions on their customers. As a customer, if you want to open an account with any bank or financial institution, you must go for KYC verification. This article will detail several ways that you can become KYC compliant.

This piece will also provide details of how you can undergo KYC update online and offline and the documents required to do the same.

Know Your Customer or Know Your Client is a process most financial institutions follow. KYC allows financial institutions to verify the identities of their customers by confirming their occupation, address and other data. The main objective of KYC is to eliminate illegal and suspicious activities such as terrorist financing and money laundering.

Banks or other financial institutions might refuse to open an account if you meet the minimum requirements for KYC. Therefore, it assesses that its customers are real through their ID verification, which is a mandate for every individual.

You can update your KYC details in two ways. One is the online method, and the other is the offline method. Here, we will discuss the two -

Online Procedure for KYC Update

If your financial institution allows you to update your KYC details online, here are the steps to follow:

Step 1: Log into the online KYC portal of the respective financial institution.

Step 2: You will see a form in the ’Update KYC’ section, which you must complete.

Step 3: As identity and address proof, you will be required to provide KYC documents.

Step 4: By checking the box underneath, authorise your KYC update.

Step 5: You will view a captcha code (security code) that you need to enter as given.

Step 6: Click on the 'submit' button.

You can download the duly filled form as you complete the KYC form online. Once you download it, sign it, attach the self-attested copies, and courier these documents to the verifying authority or a financial institution.

Offline Procedure for KYC Update

You can also complete your KYC update by filling in the downloadable form. Here are the steps to complete KYC updation offline:

Step 1: Visit your respective bank's website and complete the login procedure.

Step 2: You will see a downloadable form. Download it and print the ‘bank account KYC update form’ duly, as mentioned.

Step 3: Select the documents you need to provide as identity proof or address proof.

Step 4: You will have to sign the form.

Step 5: Then attach a recent passport-size photograph to the form.

Step 6: Attach your self-attested identity and address proof with the document.

Step 7: Visit your nearest branch to submit the document. You can also courier the same to the given address of your financial institution.

It is essential to abide by your bank's rules in terms of KYC updation. If your financial institution cannot verify your identity as per KYC, it can lead to complete closure or account freezing.

Financial institutions require you to submit KYC documents to verify your identity to ensure that you are not involved in any unethical or anti-social financial transactions. Here are they:

Identity Proof

• Adhaar Card
• PAN Card
• Driving Licence
• Passport
• Voter ID Card
• Photo ID card issued by any university
• ID cards issued by public sector undertakings, commercial banks, and public financial institutions
• ID cards are issued by members of professional bodies such as the Bar Council, ICAI, etc.

Address Proof

• Adhaar Card
• PAN Card
• Driving Licence
• Passport
• Voter ID Card
• Ration Card
• An agreement that is registered for lease or sale of the residence
• Last three months’ utility bill (gas, telephone, electricity, etc.)
• Last three months’ bank account statement

Income Proof

• Last three months’ salary slip
• Income Tax Return
• Bank passbook and Statements

You can go through the following options to update the PAN card details for KYC:

• Bank Accounts: While opening your bank account, if you have provided your PAN details as your identity proof, it will be already updated in the system. You can check your KYC status on your financial institution's website. If your PAN Card is not updated, download the KYC form and attach your PAN card, address proof and passport-size photograph and submit it. Your financial institution will manually verify the documents and update the PAN card.
• Complying Your KYC With Aadhaar: A process to update your KYC is through Aadhaar. Here, a representative from your financial institution will pay a visit and scan your fingerprint through a biometric device. You must submit a copy of your Aadhaar and PAN card, and your bank will update your KYC.
• Other Investments: If you have plans to invest in the stock market, you require KYC updation. In that case, visit the SEBI website and upload your PAN and Aadhaar details on the KYC Registration Agency Portal. Verify your account through an OTP or a One Time Password that you will receive on your registered contact number and update your PAN.

eKYC or Electronic Know Your Customer is a procedure where your address and identity are verified electronically via Aadhaar authentication. This system captures your information via OCR mode from your IDs. This means digital data is captured via government-issued IDs that come with a chip with your physical presence.

If you opt for the eKYC service, you can complete the process digitally by using your Aadhaar-based biometric verification or an Aadhaar-based OTP sent to your email or contact number. eKYC is popular in India because almost 99% of our country's population has a digital identity. In January 2022, approximately 1.3 billion Indian residents received their Aadhaar details. This system has made customer onboarding easier and more accurate using Artificial Intelligence.

As you update your KYC, it also comes with a set of benefits. They are:

• KYC update limits fraud that might be caused due to hiding any identity.
• Safeguards against any anti-social activities and money laundering.
• Allows lenders to conduct risk management as they can monitor your previous financial year history and assets you own.
• Strengthens the financial framework of your country by reducing risks. This brings stability to the country too.
• Due to reduced uncertainty, you can apply for loans and enjoy other benefits from financial institutions.

Suppose you have changed your address or phone number very recently. In this scenario, you need a KYC update. The other situations where you require KYC updation is:

• If you want to change your name legally, it will also require changing your PAN, Adhaar and passport. You need to provide all these new documents to your financial institution to update the KYC.
• If you shift to a new location, place, or state or shift to some location due to marriage, your PAN, Adhaar and other address proofs require an update. In this case, you can update the KYC online.

Therefore, KYC is a mandatory process if you have updated your personal details anytime.

Now that you know the benefits of KYC update and the online and offline processes to do the same, you must follow the steps mentioned above. Well, both the processes of KYC verification take about a week for authentication. However, the online process might require a shorter time period. This depends totally on errors or inconsistencies in your application form. Once your form is free of errors, your KYC update will be faster and easier.