18 COMMENTS

  1. BAD experience from SBI. This bank does not inform the KYC status to customer. This bank cheating the customers by raising penalty if issue the cheque.

  2. What will happen if the bank freez the account and not close the account. Should we forget our deposit in the bank. In spite of repeated KYC, the banks never confirm in writing that your KYC is complete. How can you ensure that your KYC is done.
    Pramod Kumar Agrawal

    • No..you need not forget the deposit in the bank, Just have to deposit the required documents for KYC, and activate the account. You may ask for the acknowledgment of the documents submitted to the bank, banks cannot refuse that. Talk to BM in case of issue

  3. Sir,
    I visited the branch and signed off all the KYC documents required by the bank even then my account was freezed. On request RM told me that he made a mistake on getting signature on wrong/old KYC forms and they are no use and he sent all the new forms and got it signed off and arrange picked up from my home.
    After several days the account was activated and transactions were performed for about a month.
    Now again my account is freezed and they say my KYS is not complete.
    How do I approach the higher level management of the bank or any other organization I can complain.
    Kindly advise

    • You may write email to the higher management by following the grievance redressal mechanism as laid down by all the banks. As your bankers about the same or check their website.

  4. Sir,
    My bank account has frozen… Because i have done too too many UPI transection from my bank account … Matter is this … A cashback scheme on paytm is running that if a person do a Upi transection … He will get 1rs per upi transection … So , I was trapped in it and i done upi transection on paytm for cashback … Because of doing too many transection from my account … The bank froze my account .. I also visited bank and told them this ….they told me that this was done by the headoffice of uco bank ….and i also e-mail to customer care of the bank … They told me to submit my full kyc to the bank but question is after submitting Full Kyc will my account be unfreeze ??? …This is the matter …please kindly help me in this serious issue … Please help me in this matter … Help me How can i unfreeze my account

    • Bank just wants to be sure of the genuineness of the transaction and your credibility. Give them the documents they want and explain them the reason of you doing so much of transactions. They will unfreeze the account if they are satisfied with your explanation.

  5. Greatly appreciated this very informative article mr singal. SBI-recently changed from Sbm- whose customer I have been for the past 3 decades plus. They have my PAN, cell number, landline number, email address and what’s more I live right opposite to the bank. In fact I need to demand kyb-know your banker- documents as some of the previous managers were in & out of jail. Recently without intimation blocked my account which I found out when my debit card transaction was declined. After furious complaints they came home and collected my passport /PAN copy as an eyewash. They have closed all my complaints with some eye wash and tissue paper. They won’t give me the rbi order which permits their backend to stop services without notice. What should I do next? I want to try the banking ombudsman as consumer forums have been grievously disappointing in upholding customers rights.

    • I can understand Mr Natraj. Nationalised banks are under a very sad state of affairs. You may like to follow the bank grievance redressal process as listed on their website or you may ask from the bank branch itself. Even Ombudsman or consumer forum will ask you if you have followed the grievance redressal process or not.

  6. I just had a pretty nasty experience with KYC. BOA sent me a letter while I was out of town requesting information about my father. The letter got stacked with other mail I had received and I missed it. After 5 weeks, my account was frozen. We opened the account together while I was in college and we had completely forgotten he was on the account. Really rough because I had just sold some stock and had it wired to the account. We called today and they advised they were lifting the freeze but it would take 24 hours. While I failed to return the paperwork, it is extremely rough feeling to have your hard earned funds not available; almost a criminalizing feeling. If BOA fails to unfreeze my account in a timely manner, what would be my best recourse? Just not sure what type of attorney or agency to contact. Hopefully the matter has passed.

  7. Sir, my account has been freezes by the bank for not completing the KYC the problem is I had opened this account in tamilnadu but in recent I m residing in Bihar and I have made transaction by mistake from another account to this freezes account. SO is there any way to reverse this amount by sending mail to the bank(of beneficiary).
    Thanks.
    Plz reply

    • No there’s no procedure to reverse the transaction. But why don’t you active the account by submitting the required document. This is the easiest procedure i could think of. It doesn’t matter where you have opened the account and where you live. Bank just need your current identification and address proof

  8. Yesterday I received a msg regarding updation of kyc details. However I had already submitted my details 2 years ago and in Internet banking my details are same as of now. Considering My Monthly average balance is less than 20 k and I am a student(earning by means of tutoring online) . How can I be in high risk category as I should have been at most in medium risk. I couldn’t find any any link in SBI net banking to update or inform that there hasn’t been any changes . Now I am in another state and can’t go to my hometown before next year I.e 7-8 months. What should I do. Can I stall the updation till partial freezing or there is another way via online?

    • You may visit the same bank’s branch and speak to the branch manager about the same. They should have some solution to it.

  9. Sir, link for “But banks have to follow a set procedure before taking this harsh step.” not working. Can you please update correct link please?

    • Hi Karthik. Sorry, seems the FAQs have been removed from there. I am searching for the circular. If i found i will share with you.

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