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The Reserve Bank of India has continued to refine its Know Your Customer (KYC) framework to make compliance easier for individuals while maintaining the integrity required under the Prevention of Money Laundering Act, 2002. A major step in this direction was taken in May 2021, when the process for periodic updation of KYC, commonly known as re-KYC, was simplified to reduce customer inconvenience and promote digital alternatives.
Under the current guidelines, customers who have no changes in their existing KYC details can complete their re-KYC by submitting a simple self-declaration. This declaration can be shared through multiple non-face-to-face channels, including the customer’s registered email ID, mobile number, ATMs, internet banking, mobile banking applications, or even by sending a letter. This eliminates the need for a physical visit to the bank branch in most cases. If a customer needs to update only their address, they may send the revised address through any of these channels, after which the bank will verify it within two months.
Banks are required to periodically review and update their records, which means that customers may occasionally need to undergo a fresh KYC process. This applies in situations where the documents previously submitted do not match the current list of Officially Valid Documents—passport, driving licence, Aadhaar (proof of possession), voter ID, NREGA job card, or a letter issued by the National Population Register—or when the validity of earlier documents has expired. In such cases, banks must provide an acknowledgment of the updated documents or declarations submitted by the customer.
For those who need to complete a fresh KYC, banks offer both in-person and remote options. Customers may visit their branch or choose the Video-based Customer Identification Process (V-CIP), wherever it is available, allowing them to complete verification from their home.
Customers are encouraged to check with their respective banks to understand the specific options available to them for completing re-KYC through digital channels or conducting a fresh KYC through branch visits or V-CIP. The RBI’s ongoing efforts aim to make compliance smoother and more accessible while upholding regulatory standards.
[RBI]