Everything you need to know about KYC Updation

Everything you need to know about KYC Updation

In India, KYC has been in existence since 2002 and became mandatory in 2004 by the RBI. Still, people have very little knowledge about it and there is a lot of confusion about its need, updates, documentation requirements, purpose, and many others. That’s why, in this article, all these confusions are cleared by answering everything you need to know about KYC and the updation of KYC’s and signatures. Let’s start.

What is KYC and why is it needed?

First of all, let’s learn about the full form of KYC. KYC is an acronym for “Know Your Customer” or “Know Your Client.” Updation of KYC’s and signatures is a mandatory and legal procedure that is being done by financial institutions like banks, mutual fund houses, etc. This is to make sure that the identity of the customer is real and accessible. This helps in the prevention of any fraud or illegal financial activity. The updation of KYCs includes verification of the customer’s identity, signature, address, etc. There is a need for KYC to open bank accounts, open Demat accounts, get a locker in the bank, and invest in mutual funds, among others. Basically, it is needed for almost all financial transactions.

Need for Updation of KYCs?

There is a need for the updation of KYC’s and signatures at regular intervals. The time period is different for different types of customers. It depends upon the risk factor of customers. It ranges from once every 2-10 years. But, if you make certain changes by yourself, like changing the address, phone number, etc., then you have to update your KYC. No matter if the change is as small as changing the phone number or as big as changing the name legally, you need the updation of KYCs.

There will be a need for the update if

  • You change your city for the purpose of a job, marriage, or any other purpose. This is to update your address in the KYC.
  • You change your name officially or legally because of marriage or any other reason.
  • Your name is different on different documents like in passport, Aadhar card, or PAN card. Then, you need to update your KYC.
  • You change your phone number.
  • You change your email address.
  • There is a change in your signature.

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How to do the updation of KYCs?

You can do the updation of KYC’s and signatures either by yourself in online mode or offline mode by visiting your bank branch or any other financial institution. Here is the step-by-step procedure for the online updation of KYCs.

Step 1: Firstly, open the KYC online portal.

Step 2: Next, search for the ‘Update KYC’ option in the settings on the portal.

Step 3: Now, click on that option, and it will show the KYC preferences.

Step 4: Look out for the option that you need to change like your name, address, phone number, etc.

Step 5: The next step is to make the changes in the KYC by uploading the required documents. Note that the documents are the latest and scanned.

Step 6: Verify the process by filling in the OTP. It will come to your registered mobile number or email address.

Step 7: Finally, after the OTP verification, click on the submit button, and now you have submitted your application. 

Step 8: Lastly, keep an eye on the notifications as you will be notified about the updation of KYC’s and signatures.

And that’s it. You have updated your KYC by yourself. It is as simple as it sounds. But, if you don’t want to do it by yourself, just go to any kiosk centre and you can update your KYC there. They may charge a little amount for it.

Documents needed

Some of the documents that you can use for the updation of KYCs are, for example,

  • Aadhar card
  • Driving Licence
  • Voter Identity Card
  • Passport
  • PAN Card
  • NREGA Card

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Some other things to keep in mind

There are some things that you need to keep in mind after the updation of KYC’s and signatures. For instance,

  • You should keep a track of the update process whether it is successfully done or not.
  • Once you upload the latest documents, they will be checked for the final layer of scrutiny. The template of the documents are identified as valid and will be examined to make sure that they are not tempered in any form.
  • If you decide to do the offline update, make sure to carry original as well as copies of your latest documents.
  • In most cases, it takes only 1 week or even less for the updation of KYCs. It depends on various factors like if there is any error, ambiguity, or inconsistency in the application. In case you use offline mode, it may take a little longer. 
  • There are some websites and portals that notify you in case you need to update your KYC. But, before signing on to those websites, just make sure that they are authentic websites.

So, this is it for the blog. We hope you can now have all the information about the updation of KYC’s and signatures and all your confusion is cleared. Now, you can just follow the steps and do the updation of KYCs.

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