The Reserve Bank of India (RBI) has introduced significant changes to make KYC easier, ensuring financial access and inclusion for all:
- Transactions allowed even if KYC is pending for low-risk customers until June 30, 2026
- KYC can now be done via banking correspondents—helping rural and remote users
- Video-KYC (V-CIP) and non-face-to-face onboarding allowed for account reactivation and opening
- KYC updates via any bank branch (not just the home branch) and video or BCs for dormant account owners
- Minor changes to KYC details require no resubmission of documents, reducing paperwork
🚀 Why This Matters
- Unlocking dormant accounts: Customers can now reclaim long-inactive deposits held for 10+ years without hassle
- No service disruption: Allowing essential transactions even if KYC is pending ensures continuous access for low-risk users
- Financial inclusion boost: Rural and underserved individuals benefit from video-KYC and BC access
- Encourages digital adoption: The new rules support remote onboarding and updating—reducing need to visit physical branches
🧩 What Changed – At a Glance
| Previous Requirement | New Flexibilities |
|---|---|
| KYC updates only via home branch | Any branch, video, or BC-based KYC now allowed |
| Transactions halted if KYC outdated | Low-risk customers can continue transactions until June 30, 2026 |
| Full re-submission of all documents for updates | Minor updates accepted without paperwork |
| Limited onboarding methods | Face-to-face, video, or non-face-to-face allowed |
👥 Who’s Benefitting?
- Low-risk individuals—they retain account access while updating KYC
- Dormant account holders—can now activate accounts via video or BCs without branch visits
- Rural users—non-face methods ensure better coverage
- Busy professionals & digital natives—simplified updates reduce friction
✅ The Big Picture
These reforms reinforce RBI’s commitment to modern, inclusive, and secure banking, aligning with its broader “Ease of Banking” agenda. Consumers and banks alike stand to gain from reduced friction, enhanced convenience, and protected financial access.
