These PNB customers may face ‘restriction of operations in their account’ from today. What does it mean? | Popgen Tech

Only those PNB customers had to update their KYC whose accounts became due for the process from 31st March 2022.

KYC means Know Your Customer. The KYC process helps the bank to know about the identity, address, and financial history of the customer and to keep track of the money made or not for illegal purposes.

Meanwhile, the PNB has raised the marginal cost of funds based lending rate (MCLR) by 0.05 percent across the tenors from September 1, bringing most large consumer loans cost more.

The benchmark one-year MCLR, which is used to price most consumer loans such as car, auto and personal, will be 7.70 per cent against the existing 7.65 per cent , PNB said in a regulatory filing on Wednesday.

The three-year MCLR is 8 per cent, up 0.05 per cent.

Among others, the tenor rate of one month, three months and six months will be in the range of 7.10-7.40 percent. The MCLR on overnight tenor will be 7.05 percent against 7 percent.

Earlier this month, the state-owned lender raised its repo-linked lending rate to 7.90 percent, up 0.50 percent, with effect from August 6 after the increase in the repo rate from the RBI.