Looking at the rate at which Covid-19 infections are spreading, India’s largest lender SBI has been advised to accept KYC updated requests through mail or post without the physical presence of the customer in the branch.
The move is expected to be followed by other public sector banks as well.
The bank has decided to permit acceptance of documents for KYC updating through mail or post because of the difficulties faced by customers as many parts of the country are witnessing local lockdown induced by the second wave of coronavirus pandemic.
It said that in view of Covid-19 curbs or lockdown in several states, branches can carry KYC updating on the basis of documents received from customers through post. It further emphasized that in no case the customer should be asked to personally visit the branch for KYC updating.
Partial freezing of CIFs due to KYC updating is not done up to May 31, 2021,it said.
The SBI, in a communication to the chief general manager of all its 17 local head offices dated April 30 said that it has been advised to accept KYC updated requests through mail or post without the physical presence of the customer in the branch due to the current situation in the country.
Periodic updating has to be carried out at least once every two years for high-risk customers, once eight years for medium-risk customers and once every 10 years for low-risk customers.
Bhoi Smrutirekha Dharanidhar