RBI warns public against KYC related frauds

According to complaints submitted at the central government’s anti-cybercrime portal – www.cybercrime.gov.in – which was launched in August 2019, more than 3,28,000 cyber frauds were reported on the portal till March this year, writes ETV Bharat's Krishnanand Tripathi.

New Delhi: The Reserve Bank of India Monday warned general public against the frauds committed in the name of updating their know your customer (KYC) details as the banking sector regulator has received a lot of complaints about bank customers receiving unsolicited calls asking for personal details such as login ID, password and OTP that were later used to dupe them.

The Reserve Bank admitted that though there was a need for banks and other regulated entities to periodically update KYC details of their customers, non-updation cannot be the sole reason for blocking a customer’s bank account.

The Bank said the usual modus operandi in such cases included unsolicited calls, SMS or emails that urge customers to share personal information such as bank login ID, password, PIN or OTP or asks them to install some unauthorised applications by providing links in the communication.

The RBI said such fraudsters threaten the bank customers that their bank account will be frozen, blocked or closed if the don’t follow the procedure suggested in the unsolicited communication.

According to the Bank, once a customer shares information over the call, message or unauthorised mobile application, fraudsters gain access to the customer’s account and defraud them.

“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,” the RBI said in a statement.

The Reserve Bank also cautioned bank customers against sharing such details with suspicious websites and mobile applications too.

“In case they receive any such requests, customers are requested to get in touch with their bank branch,” said the RBI in its advisory.

Accounts cannot be blocked till December

In its communication, the Reserve Bank acknowledged that there indeed was a requirement for regulated entities such as scheduled commercial banks to periodically update their customer’s KYC details but it has already been simplified over the years.

The RBI said that in May this year it had already advised banks and other regulated entities that no restrictions should be placed on those bank accounts till the year-end where periodic updation was due as on May 5, this year.

The RBI said such accounts should not be blocked or closed just because their periodic updation was due unless there was instruction from a law enforcement agency, regulator or a court of law.

Rising incident of Cyber frauds

According to complaints submitted at the central government’s anti-cybercrime portal – www.cybercrime.gov.in – which was launched in August 2019, more than 3,28,000 cyber frauds were reported on the portal till March this year.

The portal, which is managed by the Union home ministry, is actively supported by the Reserve Bank of India, all public, private and foreign banks, major payment gateways and wallet companies, UPI payments applications among others.