RBI’s Surprise Move: Now Update KYC at Kirana Stores Too!
The Reserve Bank of India (RBI) has announced significant reforms to simplify the process of updating Know Your Customer (KYC) details for bank accounts.
New Delhi: The Reserve Bank of India (RBI) has announced significant reforms to simplify the process of updating Know Your Customer (KYC) details for bank accounts. This move aims to ease the challenges faced by customers, particularly in rural and semi-urban areas, while updating their KYC.
Table of Contents
RBI’s New Notification Brings Two Key Changes
In a notification issued on June 12, the RBI outlined two major changes:
Also Read: How to Link Aadhaar with Your IRCTC Account? Super Simple — Without It, No Tatkal Booking!
1. KYC Can Now Be Updated Through Bank Correspondents
From now on, customers can update their KYC details at authorized banking correspondents such as:
- Nearby grocery store owners
- NGOs
- Self-Help Groups (SHGs)
- Microfinance Institutions (MFIs)
These correspondents act as bank agents, making the KYC update process more accessible, especially for those living in remote or rural locations.
2. Banks Must Notify Customers Three Times Before Action
Banks are now required to send KYC update reminders to their customers at least three times before taking any action. Importantly, one of these notifications must be sent in physical form via letter.
This step ensures that customers receive ample notice and opportunities to update their information and avoid disruptions to their banking services.
Relief for Rural and Semi-Urban Customers
The new guidelines come as a big relief to customers in rural and semi-urban regions who often face difficulties visiting bank branches to complete KYC updates. With the help of local agents and improved notification systems, many will now be able to comply with KYC requirements without significant inconvenience.
Thousands of Pending KYC Cases to Be Resolved
A large number of bank accounts opened under schemes like:
- Direct Benefit Transfer (DBT)
- Electronic Benefit Transfer (EBT)
- Scholarships
- Pradhan Mantri Jan Dhan Yojana (PMJDY)
remain pending for KYC updates. The RBI’s latest initiative is expected to help clear many of these pending cases and ensure that beneficiaries continue receiving government subsidies and benefits smoothly.
