India's largest bank, State Bank of India made an announcement regarding the fulfillment of the Know-Your-Customer (KYC) norms.

SBI has asked its customers to immediately meet the terms of KYC guidelines. If a customer does not follow the bank's notice his account would be freezed.

A notice by SBI stated: "All account holders of the bank who have not yet complied with the KYC guidelines are hereby requested to make their accounts KYC compliant by contacting their home branches and completing the required documentation latest by October 31."

All the customers are required to meet the KYC norms as per the requirement of Prevention of Money Laundering Act 2002 and RBI directions. Banks are asked to follow certain identification procedures while opening an account. They also have to monitor transactions which are declared suspicious by the RBI. The monitoring has to be done in context of recommendations made by the Financial Action Task Force on Anti-Money Laundering standards and on Combating Financing of Terrorism.

The account operations would be freezed on failure of meeting the guidelines of KYC.

A senior official from SBI said, "Several account holders have still not submitted local address and identity proofs, thereby violating the KYC guidelines issued by the apex bank on account opening."

SBI has regularly informed such customers through posts and notices but still there has not been any response. This is the final notice by SBI following which it will freeze the account operations said the official.

Know your customer (KYC) is the due diligence and bank regulation that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them.