Banks in India are seeing a major change in the digital era. Many big banks have now made physical verification and branch or home visits mandatory for customers who want to open accounts online.
This step aims to stop identity theft and prevent fraud through “mule accounts.”
Banking experts believe this shows a slight shift away from fully digital services. For many years, the banking sector allowed customers to open accounts with just a click.
But with rising cases of mule accounts and fraudulent transactions, banks are bringing back physical checks to ensure safety.
Which Banks Are Changing Their Process?
Major banks such as ICICI Bank, HDFC Bank, State Bank of India, Bank of India, and Bank of Baroda are now slowing down their fully digital onboarding systems.
Customers will now need to either visit a nearby branch to submit documents or complete the process through a visit by a bank official.
Bank officials say this change follows RBI’s stricter KYC (Know Your Customer) guidelines and its instructions to quickly freeze mule accounts.
ICICI Bank has stopped its instant online account opening service completely. Only salary accounts can now be opened fully digitally. All other accounts will still be opened digitally but with support from a branch representative.
Why Did Banks Make This Move?
Last year, many major banks faced a sudden rise in mule account fraud, which led to large-scale illegal fund transfers. This incident acted as a warning and pushed banks to tighten their online account opening procedures.
HDFC Bank’s Stand
HDFC Bank informed ET that it is still offering digital onboarding but is making the process stronger and more secure.
The bank said it now uses an integrated “assisted digital model,” which mixes technology with guidance from bank staff to help customers choose the right banking products.
