RBI issues revised guidelines to simplify KYC updation process

In a move aimed at easing the Know Your Customer (KYC) compliance burden on customers, the Reserve Bank of India (RBI) has released revised instructions to streamline the process of KYC updation across all regulated entities (REs), including banks.

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The circular is intended to address the significant backlog in periodic KYC updates, especially in accounts linked to Direct Benefit Transfer (DBT), scholarships, and the Pradhan Mantri Jan Dhan Yojana (PMJDY).

To enhance convenience, the RBI has now allowed Business Correspondents (BCs) to assist customers in KYC updation. This step is expected to significantly benefit rural and semi-urban populations who may have limited access to banking infrastructure.