Banks cannot freeze account when KYC is not updated, RBI said – Deadline is till December 31

In the case of KYC update, the RBI has given new instructions to the banks. RBI has said that banks should not take any action against customers if KYC is not updated. Banks have said that the time for KY updation is till 31 December 2021. Before this, do not take many punitive actions against the customer.

Customers had complained about the bank account freezing

Actually, there were complaints of bank customers that due to delay in KYC, banks are either suspending their accounts or freezing them. There are complaints that banks are freezing their accounts without giving any information. There were continuous reports in the media that many customers’ accounts are getting frozen due to not being able to complete KYC. Now the RBI has banned this action of banks.

RBI said, problems are being caused by lockdown, do not take action

RBI has said that activities have reduced due to increase of corona infection and lockdown. In such a situation, the bank cannot freeze or suspend the accounts of the customers if KYC is not updated. RBI has said that no such action can be taken against customers till December 31, 2021. Bank account holders have been asked to update their KYC during this period.


Leave a Reply

Your email address will not be published. Required fields are marked *