Banking News

RBI: Re-KYC completed for 3.5 million accounts under inclusion push

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The Reserve Bank of India (RBI) announced that banks have completed reKYC for over 3.5 million accounts under the ongoing financial inclusion drive.

From July 1 to September 30, 2025, a nationwide campaign is underway at the Gram Panchayat level to ensure saturation of financial inclusion (FI) schemes and KYC compliance.

As of August 11, over 1.41 lakh outreach camps have been conducted. ReKYC is mandated at intervals depending on customer risk profiles-every 2 years for high-risk, 8 years for medium, and 10 years for low-risk customers. RBI Governor Sanjay Malhotra visited a camp in Gozaria, Mehsana (Gujarat), where he interacted with local stakeholders and emphasized collaborative efforts between banks, RBI, and communities to expand access to financial services.

The campaign also aims to improve uptake of government Fl schemes. RBI is closely monitoring progress to ensure full KYC compliance across the banking ecosystem.

PSBs write off Rs. 5.82 trillion in 5 years, recover just 28%

Public sector banks (PSBS) have written off Rs. 5.82 lakh crore in bad loans over the past five financial years, Minister of State for Finance Pankaj Chaudhary told Parliament. In FY25 alone, Rs. 91,260 crore was written off, while the highest annual writeoff occurred in FY21 at Rs. 1.33 lakh crore. Recoveries during this fiveyear period stood at Rs. 1.65 lakh crore, amounting to just 28% of total write-offs.

The minister clarified that such writeoffs do not waive the liabilities of borrowers; rather, they follow RBI norms and are based on bank board-approved policies. Write-offs typically occur after four years of provisioning. Banks continue pursuing recovery through legal and other channels.