The Reserve Bank of India (RBI) is planning to make big changes to the Know Your Customer (KYC) rules.
This will help both new and existing customers who want to update their details with minor changes.
RBI had earlier asked customers for their views on this. The new rules will make things easier for banks, NBFCs, and customers.
Minor Updates Will Be Easier
RBI wants to simplify how customers update their KYC details.
After this change, for small updates like changing an address, customers will only need to fill a single self-declaration form explaining what has changed.
This can be done through digital channels such as registered email, mobile number, ATM, or online banking apps.
No Need to Submit the Same Document Multiple Times
RBI Governor Sanjay Malhotra emphasized in March that customers should not have to submit the same document repeatedly to financial institutions.
This new guideline will help millions of customers avoid the hassle of resubmitting documents.
KYC Can Be Updated at Any Bank Branch
The RBI is also expanding the ways customers can update their KYC.
Now, customers can update their details at any branch or office of the bank or financial institution where they have an account.
Besides this, Aadhaar OTP-based KYC and video-based customer identification will be allowed for minor updates.
If a customer’s current address is different from the one in the UIDAI database, they can still use Aadhaar biometric e-KYC for face-to-face verification with a self-declaration.
Easier for People Who Move for Jobs
Experts say many people change addresses often because of job transfers. Updating the correct address is important for many official purposes.
These new RBI rules will make it easier for such people to update their address without trouble.
