Re-KYC stands for Renewal of Know Your Customer. It is a process where banks or financial institutions update a customer’s personal details and documents to ensure their records remain accurate and up-to-date. Re-KYC is a standard requirement under banking and financial regulations.
Re-KYC Definition & Purpose
The Re-KYC process involves verifying and updating the customer’s information that was previously provided during the initial KYC. This may include details like address, phone number, or ID proof. Customers are often asked to complete Re-KYC if there are significant changes in their details or periodically as per the institution’s policy.
The purpose of Re-KYC is to prevent fraud, comply with regulatory requirements, and maintain accurate records. It also helps financial institutions stay compliant with anti-money laundering (AML) laws. Customers are typically notified by their bank when Re-KYC is due and are given multiple channels, such as online portals or branch visits, to complete it.
Why is Re-KYC Important?
- Compliance: It ensures banks meet regulatory guidelines.
- Security: Prevents misuse of accounts by keeping records updated.
Convenience: Helps the bank provide better services by maintaining accurate details. Customers should complete Re-KYC promptly to avoid disruptions in services like account access, transactions, or receiving updates.
