The Reserve Bank of India (RBI) has introduced new guidelines aimed at enhancing customer security and improving banking services. As per the RBI KYC (Amendment) Directions 2025, effective from January 1, 2026, banks and regulated institutions will be required to remind customers to update their Know Your Customer (KYC) information in a timely manner. This directive applies to all customers, including those with accounts linked to government schemes such as Jan Dhan Yojana, Direct Benefit Transfer (DBT), and Electronic Benefit Transfer (EBT).
Under the new rules, banks must send customers at least three reminders to update their KYC before the due date, including one physical letter sent via post. Additional reminders can be sent through SMS, email, or mobile app. If the KYC update is still pending after the due date, banks must send three more reminders, including another physical letter. Each notification must provide clear instructions, methods of assistance, and the consequences of not updating KYC.
To facilitate the KYC update process, banks’ Business Correspondents (BCs) will be authorized to assist customers in rural and remote areas. If a customer’s information remains the same or has only changed their address, they can self-declare the update, which will be digitally recorded by the BC in the bank’s system.
Notably, banks will not restrict transaction facilities for customers with pending KYC updates, provided they update their KYC by June 30, 2026, or within one year of the KYC due date. The RBI has introduced these measures to address the issue of delayed KYC updates, particularly in government-related schemes. By ensuring timely reminders and providing assistance, the RBI aims to improve the overall banking experience and security for customers. Banks will be required to maintain a record of all notifications, enabling auditing and ensuring compliance with the new regulations.