Financial Services Secretary M Nagaraju has instructed banks to renew the KYC process for accounts opened 10 years ago under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
Launched in 2014, this scheme aims to provide financial services to people from poor and low-income groups.
The KYC updates will ensure these accounts remain secure and up-to-date.
Why is this step necessary?
By the end of 2014, around 10.5 crore accounts were opened under the Pradhan Mantri Jan Dhan Yojana.
Now, after 10 years, updating the information of these accounts has become essential.
Without updated KYC, account holders may face difficulties in using banking services like transactions, loans, or accessing government benefits.
Additionally, this update will help prevent fraud and enhance account security.
Banks are encouraged to use digital platforms
Nagaraju has instructed banks to use digital platforms such as ATM, mobile banking, and internet banking to complete the KYC process.
This will help speed up the process and prevent any inconvenience to customers.
Work must be completed on time
The secretary also directed banks to complete the process on time and assign extra staff if needed.
Banks were instructed to maintain the same level of enthusiasm to ensure that all account holders can complete the process smoothly.
Banks face a challenge in the renewal process
This could be a significant challenge due to the large scale of account updates required.
However, the Financial Services Secretary believes that with proper coordination and guidance, banks will have no trouble completing the task.
This step will enhance the security of accounts and provide account holders with a better banking experience.
It’s a win-win situation for everyone, as the process can be simplified and sped up using digital methods.
