BANKING AFFAIRS

Detailed explanation-1: -If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing’ banks may disallow all debits and credits from/to the accounts, rendering them inoperative. Further, it would always be open to the bank to close the accounts of such customers.

Detailed explanation-2: -The State Bank of India has blocked several accounts for non-compliance with KYC (Know Your Customer) norms. As per several users who have complained on social media, the SBI has frozen their accounts for not updating the KYC details by July 1. Those with blocked accounts will not being able to carry out transactions.

Detailed explanation-3: -Know Your Customer, or KYC, is a one-time procedure by which banks confirm a customer’s validity by learning more about their identification. When customers open accounts with banks or invest in various instruments, they must complete their KYC.

Detailed explanation-4: -KYC means Know Your Customer and sometimes Know Your Client. KYC or KYC check is the mandatory process of identifying and verifying the client’s identity when opening an account and periodically over time.