The Reserve Bank of India (“RBI”), vide Circular No. DOR.AML.REC.31/14.01.001/2025-26,[1] dated June 12, 2025, through the Know Your Customer (KYC) (Amendment) Directions, 2025, has issued revised instructions aimed at simplifying and accelerating the process of updation and periodic updation of KYC details by regulated entities.
These changes are in response to the significant pendency observed across the banking system, particularly in accounts opened for the credit of Direct Benefit Transfers (DBT), Electronic Benefit Transfers (EBT), and accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY). To address this, banks have now been permitted to leverage the services of their authorized Business Correspondents (BCs) to assist customers in completing KYC updation processes.
In tandem with these amendments, similar provisions have been incorporated for the activation of inoperative accounts and unclaimed deposits under the RBI circular dated June 12, 2025.
Further, banks are advised to take proactive steps by organizing KYC updation camps, especially in rural and semi-urban branches and other locations with high levels of pending KYC updates. These initiatives should be supplemented by awareness campaigns and tailored interventions to support customers, particularly vulnerable populations, by adopting an empathetic and facilitative approach, in line with the RBI’s advisory dated December 02, 2024.
[1] https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12865&Mode=0