General Studies · KYC Guidelines
As per the RBI Master Direction on Know Your Customer (KYC), what is the prescribed period for periodic updation of KYC for high, medium, and low-risk customers, and the consequences for high-risk accounts failing to comply?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1High-risk every year, medium-risk every 5 years, low-risk every 10 years; banks must report the non-compliance as a Suspicious Transaction Report (STR) to FIU-India within 7 days.
- 2High-risk at least once every 2 years, medium-risk every 8 years, low-risk every 10 years; banks shall follow a process of partial freezing (disallowing debits initially while allowing credits) before full freezing.✓
- 3High-risk every 2 years, medium-risk every 5 years, low-risk every 8 years; non-compliant accounts undergo absolute blocking of both credits and debits within 30 days of notice.
- 4High-risk every 2 years, medium-risk every 8 years, low-risk every 10 years; non-compliant high-risk accounts must be closed immediately and funds transferred to a suspense account.
Correct answer
High-risk at least once every 2 years, medium-risk every 8 years, low-risk every 10 years; banks shall follow a process of partial freezing (disallowing debits initially while allowing credits) before full freezing.
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