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Fraud Alert: RBI Cautions Public Not To Fall Prey To KYC Update Communication

Mumbai: The Reserve Bank of India (RBI) on Monday cautioned the public not to fall prey to fraudulent communication for KYC updation by sharing debit and credit card details and OTPs.

The RBI stated that it has been receiving numerous complaints and reports from customers who have been victims of frauds in the name of KYC updation.

The modus operandi in such cases is customers receiving unsolicited communication like calls, SMSes, emails and being asked to share personal details, account and login details, card information, PIN and OTP or install unauthorised or unverified applications for KYC updation using a link provided in the communication.

RBI further alerted that such communications are also reported threatening freezing or closure of accounts. If the customer gets fooled and shares information over phone or message, he or she is easily defrauded as the fraudsters get access to his account.

“Members of public are hereby 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 details should not be shared through unverified/unauthorised websites or applications,” RBI’s statement said, adding that people should get in touch with their respective banks if they receive any such requests.

Regulated Entities (REs) are required to undertake periodic updation of KYC, but RBI clarified that the process has been simplified to a large extent.

REs have also been advised that for those customer accounts where periodic updation of KYC is due and pending, no restriction on operations of such accounts shall be imposed till December 31, 2021, unless warranted under instructions of any regulator/enforcement agency/court of law among others.