Banks Asked to Notify Customers for Periodic KYC Update

RBI on Thursday asked banks and other regulated entities to give due notices to their customers for periodic updation of Know Your Customer (KYC) with a view to enhance consumer protection as well as service.

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MUMBAI:

In a circular, the RBI said it has observed a large pendency in periodic updation of KYC, including in the accounts opened for credit of Direct Benefit Transfer (DBT)/Electronic Benefit Transfer (EBT) under government schemes to facilitate credit of DBTs and/or scholarship amount (DBT/EBT/scholarship beneficiaries) and accounts opened under PMJDY.

In order to further ease the process for the convenience of customers, the instructions regarding updation/periodic updation of KYC have been amended with the intent, inter alia, to allow BCs to facilitate in the process of KYC updation.

In this regard, it issued the Reserve Bank of India Know Your Customer (KYC) (Amendment) Directions, 2025 on Thursday.