look news india
New Delhi: There is a big relief news for bank customers. The Reserve Bank of India (RBI) has taken important steps to make the ‘Know your customer’ (KYC) rules easier, which will benefit millions of customers, especially people living in rural and semi-urban areas. This new order of RBI has been issued with the aim of increasing customers’ convenience and simplifying banking processes.
RBI has found that a large number of bank accounts have not been updated on time, including the Pradhan Mantri Jan Dhan Yojana (PMJDY) and direct profit transfer (DBT) accounts. Keeping this in mind, RBI has issued new guidelines to banks.
What are the new rules and benefits now?
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Business Correspondent will help: Now customers will be able to take help of the bank’s business correspondent (BC) to update their KYC. These BCs provide banking services in far-flung areas and now they will also help in submitting self-declaration letters for KYC, so that customers will not have to go to the bank branch.
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Time limit relaxation: Low-RISK customers have been given additional time to update KYC. Customers, whose KYC is pending, can continue transactions in their account by 30 June 2026 or within a year from the date of dues KYC.
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Reminder will be compulsorily sent: Banks will now have to send at least three advance information to customers before the due date of KYC update, one of which will be mandatory to send through a letter.If customers do not update even after this, then they will be sent again three reminders so that they can avoid their account closure.
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Special Camp organized: The RBI has directed banks to set up special camps for KYC updates in rural and semi-urban branches and run intensive campaigns.
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Other procedures became easy: Now customers can go to any branch and get their KYC updated.In addition, KYC has also been allowed to update through Aadhaar OTP and video-based identification process (V-CIP).If there is no change in your information, then you can also submit a self-declaration letter through registered email, mobile number, ATM or online banking.
The RBI has asked banks to ensure that these new rules are fully implemented by 1 January 2026. The purpose of these changes is to ensure that the process of KYC does not become a hindrance to the customers and they can avail banking services without any hassle.