Not completing KYC in your bank account can have serious consequences. According to the RBI’s Master Directions on Know Your Customer (KYC), banks must mandate KYC compliance to ensure regulatory adherence and account security.
What Happens If KYC Is Not Completed?
Account Freezing: If you don’t complete your KYC within the specified timeframe, your bank account may be frozen. This means you won’t be able to withdraw funds or conduct transactions.
Fund Transfer to RBI: After a certain period, inactive accounts with incomplete KYC have their balance transferred to the RBI’s Depositor Education and Awareness (DEA) Fund, as per official RBI guidelines.
Limited Banking Services: Your account will have restricted access. You can only deposit money but cannot withdraw or perform transactions.
Legal Implications: Under the Prevention of Money Laundering Act (PMLA) and RBI’s Master Direction on Know Your Customer, banks are required to maintain complete KYC records.
RBI Official References & How to Complete KYC
For complete details on KYC requirements, refer to the