RBI New Rules:The Reserve Bank of India (RBI) has issued new guidelines to improve customer safety and banking services.
Under the updated rules, customers must update their KYC (Know Your Customer) on time. Banks will now be required to send three reminders before freezing any account for not updating KYC.
Rules Issued Under New KYC Guidelines
These new rules come under RBI KYC (Amendment) Directions 2025 and will be effective from January 1, 2026.
They apply to all types of bank customers — including accounts under Jan Dhan Yojana, Direct Benefit Transfer (DBT), and Electronic Benefit Transfer (EBT).
What’s Changing?
RBI noticed frequent delays in KYC updates, especially for government scheme accounts. So, banks will now need to take more responsibility to make sure KYC updates happen on time.
New Rules for Banks:
Banks must send at least 3 reminders before the KYC deadline.
One of these must be a physical letter via post.
Others can be sent through SMS, email, or mobile apps.
If KYC is not updated even after the due date:
Banks will need to send 3 more follow-up reminders, including another physical letter.
Notifications Must Be Clear
Every KYC reminder must include:
Simple and clear instructions
Ways to get help
What will happen if KYC is not done
Audit Records Are Mandatory
Banks must keep records of all notifications they send for future audits.
Special Support for Rural Customers
To help people in rural or remote areas, bank Business Correspondents (BCs) will now be allowed to assist with KYC updates.
If the customer’s details are unchanged (or only the address is updated), they can submit a self-declaration, and the BC will enter it into the system digitally.
Relief for Low-Risk Customers
For customers considered low-risk, the RBI has said:
Banks cannot stop their transactions even if their KYC is due,
As long as they update KYC by June 30, 2026, or within one year of the due date.
More Awareness in Villages
KYC delays are more common in rural and semi-urban areas. RBI has asked banks to:
Hold KYC update camps
Run awareness drives to help people complete KYC on time.
Note: Changes related to active accounts and unclaimed deposits are also part of the updated rules. RBI will share full details on these later.
