Rbi new rules: Customers will be required to update KYC on time. Now banks will have to send reminders 3 times before freezing the bank account to customers. The Reserve Bank of India (RBI) has issued a new instruction to increase customers’ security and improve banking service. Under this, now all banks and regulated institutions will have to give many information to customers to update KYC (Know Your Customer) on time.
These new instructions have been issued under the RBI KYC (Amendment) Directions 2025. Will be applicable from 1 January 2026. These will be applicable to all customers, including Jan Dhan Yojana, Direct Benefit Transfer (DBT) and Electronic Benefit Transfer (EBT) accounts.
What will change?
RBI found that KYC updates are being delayed considerably especially in the schemes related to the government. So now banks will have to play a more active role.
These will be changes
Before the KYC dew date, the bank will have to send notifications at least 3 times before the date of KYC, one of which will be necessary to have a physical letter sent from the post office. The rest of the notifications can be sent through SMS, email or mobile app.
If the KYC is still not updated after the KYC 7, then the bank will have to send 3 more reminders, out of which another physical letter will be necessary.
Clear information will have to be given important
In every notification, what will be the effect on guidelines, methods of help and KYC not providing KYC. All these things should be clear.
Audit trail mandatory
The bank will have to keep a record of every notification, so that it can be audited later.
Relief for rural customers
Keeping in mind the people of rural and remote areas, now the bank’s business correspondent (BC) will also be able to help in KYC updates.
If the information of the customer is the same, or just the address has changed, then they can get KYC updated by giving the declaration themselves. BC will digitally record it in the bank system.
Low-risk customers relief
RBI has instructed that low-risk customers
Even if their KYC is pending, banks will not stop transactions facilities, provided that KYC is updated by 30 June 2026 or KYC De date within one year.
Awareness campaign in rural areas
RBI also said that KYC pendency is high in rural and semi-urban areas. Therefore, the bank has been instructed to run KYC camp and awareness campaign, so that people can get KYC on time. Rules related to active account and uncured deposit have also been added to this revision, but RBI will give more information about them later.
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