The Reserve Bank of India (RBI) has asked banks to make available the facility to update KYC (know-your-customer) and activate inoperative accounts and unclaimed deposits at all branches, including non-home branches.
As per its Revised Instructions (Amendment) 2025 relating to inoperative accounts/ unclaimed deposits, Banks should endeavour to provide the facility of updation of KYC in such accounts and deposits through video-customer identification process (V-CIP).
Additionally, the services of an authorised Business Correspondent (BC) of the bank may be utilised for activation of inoperative accounts.
Meanwhile, the Central bank has asked banks to organise camps and launch intensive campaigns including special camps, focusing on periodic updation of KYC, especially in rural and semi urban branches and the branches having large pendency in periodic updation of KYC.
The Central bank issued the aforementioned revised instructions on “Updation/ Periodic Updation of KYC” as it has observed a large pendency in periodic updation of KYC.
The pendency includes the accounts opened for credit of Direct Benefit Transfer (DBT)/ Electronic Benefit Transfer (EBT) under Government schemes to facilitate credit of DBTs and/ or scholarship amount (DBT/ EBT/ scholarship beneficiaries) and accounts opened under PMJDY.
The Central bank emphasised that in order to further ease the process for the convenience of customers, the instructions regarding updation/ periodic updation of KYC have been recently amended with the intent, inter alia, to allow BCs (business correspondents) to facilitate in the process of KYC updation.
Similar amendments related to inoperative accounts and unclaimed deposits have been made.