Reserve Bank of India Simplifies KYC Rules; Reopening a Closed Bank Account Now Easier:

Reserve Bank of India Simplifies KYC Rules; Reopening a Closed Bank Account Now Easier

The Reserve Bank of India announced new updates on Thursday, these updates aim at making KYC rules more convenient so that bank account holders can reinstate their closed accounts. In accordance with these new rules, the account holder doesn't need to visit the same branch where their account was established in order to activate it. From now on, KYC updates can be done from any branch, irrespective of the fact that it's a home branch or not. Additionally, KYC can be processed through video calls. This procedure is called the video customer identification process.

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Pending KYC not a Hindrance for Transactions The notification released on Thursday by the RBI, stated that now banking correspondents are permitted to update or periodically update KYC. The RBI also notified that banks must inform the customers at least once with a letter and with at least three advance notices to comply with the KYC updation procedure. Banks and NBFCs are directed by the Reserve Bank to permit transactions from low-risk customers, no matter if their KYC is pending. The due date to update KYC for such customers is June 30, 2026.