Mumbai: In a move aimed at reducing customer inconvenience and addressing pending KYC updates, the Reserve Bank of India has revised the KYC guidelines under the Master Direction on Know Your Customer (KYC), 2016. The update comes amid mounting complaints regarding the periodic updation process and delays particularly affecting accounts opened under government benefit schemes like DBT, EBT, and PMJDY.
The RBI stated that it is streamlining onboarding and KYC update procedures both in physical and digital modes.
For face-to-face onboarding, customers can now complete Aadhaar-based biometric e-KYC. If the current address differs from that in the UIDAI database, a simple self-declaration to the reporting entity (RE) is enough. Digital KYC remains an option.
For non-face-to-face onboarding, customers may use Aadhaar OTP-based e-KYC with strict monitoring in place. Full Customer Due Diligence must be completed within a year. Digital tools such as KYC Identifiers, DigiLocker-issued documents, and even certified physical documents for NRIs and PIOs are allowed under set conditions.
Customers can now submit self-declarations for “no change in KYC” or address-only updates through registered email, mobile number, ATMs, digital banking apps, letters, or business correspondents.
KYC records can be updated at any branch where the customer holds an account. For digital convenience, Aadhaar OTP-based e-KYC and V-CIP (Video-based Customer Identification Process) are also permitted for KYC updates.
The RBI said the move is part of its ongoing effort to balance regulatory requirements with user-friendly systems, especially for beneficiaries of government welfare schemes.
BI Bureau
