If you are a small business owner who accepts payments through UPI or QR codes, there is an important update you should know about. New re-KYC requirements could affect merchants who use digital payment services.
Merchants may be required to update their KYC details by September 15, 2026.
Those who do not complete the required verification on time could face restrictions on their merchant QR code or payment services.
Why Is Re-KYC Important?
The main purpose of re-KYC is to improve security in digital payments and prevent fraud.
Fraudsters sometimes create merchant accounts using fake or stolen documents and then use these accounts to receive money obtained through scams.
Updated KYC information can help banks and payment providers verify whether a merchant account actually belongs to a genuine business owner. It can also make it easier to identify suspicious or fraudulent merchant accounts.
The verification process may also help keep merchant information updated across the financial system, reducing the chances of fake accounts being used for illegal transactions.
Small Shopkeepers Need to Pay Attention
The change could be more challenging for small merchants such as roadside vendors, tea sellers, vegetable sellers and other local shopkeepers.
Many small merchants are comfortable receiving money through QR codes but may not be familiar with online KYC procedures.
They could face difficulties while updating documents or completing verification through payment apps or banks.
Therefore, merchants should check notifications from their bank or UPI payment provider and complete any required verification before the applicable deadline.
Documents You May Need for Re-KYC
The exact requirements may vary depending on the bank or payment provider. However, merchants may generally be asked to provide documents and details such as:
Aadhaar card
PAN card
Registered mobile number
Bank account details
Passport-size photograph
Merchants should complete re-KYC only through their bank or an official payment service and avoid sharing OTPs, PINs or sensitive banking information with unknown people.
What Should Merchants Do Now?
If you receive a re-KYC notification, check whether it has come from your bank or official payment provider.
Follow the instructions provided through the official app, website or bank branch.
Completing the verification within the required timeline can help ensure that your UPI and QR code payment services continue without interruption.
