Updation/ Periodic Updation of KYC – Revised Instructions

Updation/ Periodic Updation of KYC – Revised Instructions

Please refer to instructions on updation/ periodic updation of KYC as contained in paragraph 38 of Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as amended from time to time).

2. The Reserve Bank has observed a large pendency in periodic updation of KYC including in 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.

3. In order to further ease the process for the convenience of customers, the instructions regarding updation/ periodic updation of KYC have been amended with the intent, inter alia, to allow BCs to facilitate in the process of KYC updation vide Reserve Bank of India (Know Your Customer (KYC)) (Amendment) Directions, 2025. Similar amendments related to inoperative accounts and unclaimed deposits have been made vide circular DOR.SOG(LEG).REC/32/09.08.024/2025-26 dated June 12, 2025.

4. Further, the banks are advised to organize 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 banks may also facilitate the process of activation of such accounts by taking an empathetic view as indicated in the circular DoS.CO.PPG.SEC.12/11.01.005/2024-25 dated December 2, 2024.

5. It is mentioned that over the last few years, the instructions on customer onboarding and updation/ periodic updation of customers’ KYC have been simplified and detailed in the Master Direction ibid. A brief compilation of such instructions is enclosed in the Annexure for ready reference.

Annexure

The Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as amended from time to time) instructs the Regulated Entities (REs), including banks, that the customers’ KYC Identifier shall be the first reference point for the purpose of establishing an account-based relationship or for verification of identity of customers. Accordingly, while onboarding customer, the REs shall download customers’ KYC records online from CKYCR with customer’s consent without requiring him/ her to submit the same records again, unless there is a change in records available with CKYCR.

The processes of onboarding customer and updation/ periodic updation of KYC have been simplified and the same are given below:

A. Face-to-face mode for onboarding the customer

1. Customer may be onboarded in face-to-face mode through Aadhaar biometric based e-KYC authenticating and, in such case, if customer wants to provide a current address, different from the address as per the identity information available in the UIDAI database (i.e., Central Identities Data Repository), he may give a self-declaration to that effect to the RE (ref. paragraph 16 of the Master Direction on KYC).
2. Further, Digital KYC process is also allowed for customer onboarding.

B. Non-face-to-face (NFTF) modes for onboarding the customer

1. Consent-based onboarding of customer in NFTF mode may be done using Aadhaar OTP based e-KYC authentication which is subject to certain conditions (ref. paragraph 17 of the Master Direction on KYC). Further, such account shall be placed under strict monitoring, and Customer Due Diligence (CDD) procedure shall be completed within a year.
2. Customer onboarding in NFTF mode using digital modes such as KYC Identifier, equivalent e-documents, documents issued through DigiLocker, and non-digital modes such as obtaining copy of OVD certified by additional certifying authorities as allowed for NRIs and PIOs are subject to certain conditions (ref. paragraph 40 of the Master Direction on KYC).

C. Customer onboarding using Video based Customer Identification Process (V-CIP)

1. V-CIP is an alternate method of CDD by an authorised official of the RE by undertaking seamless, secure, live, informed and consent based audiovisual interaction with the customer to obtain identification information required for CDD purpose (ref. paragraph 18 of the Master Direction on KYC).
2. V-CIP is treated on par with face-to-face onboarding.

D. Simplified process of updation and periodic updation of KYC

1. Self-declarations – REs are allowed to obtain self-declaration regarding “no change in KYC information” or “a change only in address details” from customers using digital and non-digital modes, through customer’s email / mobile number registered with the RE, ATMs, digital channels (such as online banking / internet banking, mobile application of RE), letter, BCs, etc.
2. The updation/ periodic updation of KYC records are allowed to be carried out at any branch of the RE with which customer maintains the account.
3. Aadhaar OTP based e-KYC and V-CIP are permitted for the purpose of updation/ periodic updation of KYC.
4. The REs have been directed to update customers’ KYC information/ records based on the update notification received from CKYCR.

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