If you don’t receive an OTP after changing your mobile number or updating your address, or if your mutual fund redemption is stuck, or your insurance policy shows “KYC Pending,” you are not alone.
India’s KYC system is a web of loosely connected databases. Banks, mutual funds, insurance companies, and brokers all maintain their own records.
Updating information in the wrong order can delay transactions for weeks, but following the correct steps usually ensures smooth updates.
Step 1: Update Your Primary Bank Account
Start with your primary bank account, which is linked to Aadhaar, PAN, UPI, investments, and insurance premiums. Updating your mobile number or address may require an in-person visit or net banking.
Once Aadhaar-based verification is done, wait for the OTP on your new number. This is the foundation for all other updates.
Step 2: Correct Aadhaar and PAN Records
If your name, address, or mobile number has changed, update your Aadhaar immediately. Many organizations use eKYC or CKYC for verification, and outdated Aadhaar data can cause rejections.
Make sure your name and date of birth match your PAN. After updating, wait a few days for the changes to reflect across systems.
Step 3: Update the CKYC Register
This is where most people make mistakes. The Central KYC (CKYC) register is used by mutual funds, brokers, and NBFCs. If CKYC data is outdated, platforms continue to use old information.
Request a KYC modification through any bank, fund house, or insurer. Most systems automatically refresh after the update.
Step 4: Update Investment and Insurance Accounts
Once CKYC is updated, update your demat, trading, and mutual fund accounts. Insurance accounts should be updated last, as they take longer to reflect changes.
If you follow this order, everything should be updated within 1–2 weeks. Note that new RBI regulations provide exemptions for low-risk customers until June 2026, but timely updates are still important.
What is the New One-KYC System?
Earlier, customers had to update KYC separately at each bank, insurance company, or investment platform. Now, the One-KYC update system allows your information to be updated once and automatically applied to all linked accounts.
Benefits of the One-KYC System
Saves time and effort: No need to repeat KYC at different institutions.
Transparency and security: Consistent information across accounts reduces fraud and errors.
Convenience: Particularly helpful for senior citizens and people in rural areas who find it hard to visit banks repeatedly.
