Why is Union Bank asking Telangana customers to update KYC
The bank said it was ‘organising a State-wide KYC update drive to assist customers and ensure seamless banking services
By Newsmeter Network
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Hyderabad: Customers of Union Bank of India in Telangana are being encouraged to update their Know Your Customer (KYC) details as part of a mega campaign launched by the bank across all its branches in the State.
The campaign aims to ease the re-KYC process and create awareness about regulatory requirements set by the Reserve Bank of India (RBI).
In a press release issued on Wednesday, the bank said it was ‘organising a State-wide KYC update drive to assist customers and ensure seamless banking services.’
What is KYC and why is it required?
KYC, or Know Your Customer, is a mandatory process through which banks verify the identity and address of their customers. It is a regulatory measure introduced to prevent fraud, money laundering and financial crimes.
As per RBI guidelines, banks are required to update KYC information periodically based on the customer’s risk category. This classification is determined by the nature of the customer’s occupation and transaction behaviour.
Risk-based KYC update frequency
The RBI mandates different KYC update intervals for different risk categories:
Low Risk customers: Update required once every 10 years
Medium Risk customers: Update required once every 8 years
High Risk customers: Update required once every 2 years
This risk-based approach helps banks manage compliance without burdening customers who pose a low financial risk.
Modes of Re-KYC offered by Union Bank
To simplify the re-KYC process, Union Bank of India offers several channels for customers to update their details:
ATMs
VYOM Mobile Banking App
Internet Banking
Dedicated Re-KYC portal
Corporate Website
WhatsApp Banking by sending “Hi” to 9666606060
Banking Correspondents (BCs) for rural and semi-urban areas
Branch Visits, where needed
In its statement, the bank said, “We are offering multiple convenient options for customers to complete their KYC update without delays. This initiative is especially important to ensure uninterrupted banking services.”
What happens if KYC is not updated?
Failure to update KYC within the prescribed timeframe can lead to restrictions on banking services. Accounts may be frozen or made inactive until compliance is achieved. Therefore, customers are advised to respond to KYC update reminders promptly.
How to know if you need to update KYC?
Banks typically notify customers via SMS, email or calls if they are due for a KYC update. Customers can also proactively check their KYC status by logging into their bank’s mobile or internet banking platforms.
Union Bank added, “Our aim is to support customers in fulfilling regulatory requirements without inconvenience. The campaign in Telangana is part of our commitment to customer service and compliance.”
