Banks To Ensure 'True & Fair' Picture of Financial Position in Balance Sheet, P/L Statements: RBI


The Reserve Bank of India (RBI), on Monday, warned clients towards sharing checking account login credentials, private information and knowledge, copies of know-your-customer (KYC) paperwork, card info, Personal Identification Number (PIN), password, and One Time Password (OTP), and so forth. with unidentified individuals or companies.  

The Central Bank in a press launch mentioned, “The Reserve Bank of India has been receiving complaints/reports about customers falling prey to frauds being perpetrated in the name of updating KYC. The usual modus operandi in such cases include receipt of unsolicited communication, such as calls, SMSs, emails, etc., by a customer urging him/her to share certain personal details, account/login details/ card information, PIN, OTP, etc. or install some unauthorized/ unverified application for  updating KYC using a link provided in the communication.”

“Such communications are also reported to carry threats of account freeze, block, and closure. Once a customer shares information over a call, message, unauthorized application, fraudsters get access to the customer’s account and defraud him/her, it added. 

While giving warning to the public, RBI said that it is cautioned not to share account login details, personal information, copies of KYC documents, card information, PIN, password, OTP, etc. with unidentified persons or agencies. 

“Further, such particulars shouldn’t be shared by way of unverified/unauthorized web sites or purposes. In case they obtain any such requests, clients are requested to get in contact with their financial institution/department,” as per the official statement. 

RBI also highlighted that while the Regulated Entities (REs) are required to undertake the periodic updates of KYC, the process of periodic updating of KYC has been simplified to a large extent vide circular dated May 10, 2021. 

“Further, vide round dated May 5, 2021, REs have been suggested that in respect of buyer accounts the place periodic updating of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed until December 31, 2021, for that reason alone, until warranted underneath directions of any regulator/ enforcement company/court docket of regulation, and so forth,” it mentioned. 


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