Banks and NBFCs have to give at least three advance notices and at least one by a letter at appropriate intervals to customers through available communication options/ channels for complying with the requirement of periodic updation of KYC. After the due date, banks and NBFCs have to give at least three reminders, including at least one reminder by letter, at appropriate intervals, to customers who have still not complied with the requirements. Banks and NBFCs have been given time till January 1, 2026 to give these reminders.
The central bank has also also allowed self-declaration from customers through banking correspondents (BCs) in case there is no change in KYC information or change only in the address details. Banks can get self-declaration including supporting documents, in the electronic mode from the customer through BCs using biometric based e-KYC authentication, or through a physical form.
The BC can forward the same to the concerned bank branch with an acknowledgement to the customer. Banks will still be responsible for the final KYC and will have to finally update the KYC in their records.
Banks have also been allowed to update KYC for activation of inoperative accounts and unclaimed deposits at all branches. Updation of KYC in such accounts through video identification has also been allowed. BCs can be used for activation of inoperative accounts, RBI said.
