KYC update pain may ease as RBI rejigs rules
Representative image
MUMBAI:
RBI
has eased KYC norms to simplify compliance and to make it easier for individuals to access long-dormant bank accounts and unclaimed deposits, many of which have remained untouched for over 10 years.
The move, announced through a circular on June 12, aims to ensure that anti-money laundering rules do not hinder rightful account holders from accessing their savings particularly in accounts opened to receive government benefits.
RBI has asked banks to give three advance intimations prior to the due date of periodic updation of KYC and at least one intimation must be by letter. In the past customers have complained that digital alerts have been missed and they only come to know when they are not able to transact on their account.
The central bank has also asked banks to allow KYC updates at any branch, irrespective of where the account was opened. It has also permitted the use of Aadhaar OTP and video-based customer identification for periodic KYC updates. Business correspondents, especially in rural areas, can now assist customers with reactivating inoperative accounts and completing KYC requirements.
According to RBI, banks must take an 'empathetic view' when dealing with low-risk customers seeking to update their KYC or reactivate dormant accounts.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
5 Books Warren Buffett Wants You to Read In 2025
Blinkist: Warren Buffett's Reading List
Undo
Customers with no changes in personal information, or only a change of address, can now submit self-declarations through digital or offline channels, without the need for additional documents.
Banks have been directed to organise KYC update camps, especially in rural and semi-urban areas, and to launch focused campaigns in branches with a high number of pending updates. These efforts are particularly targeted at accounts linked to direct benefit transfers and Jan Dhan accounts, where KYC compliance has lagged.
According to Anand Bajaj, founder MD & CEO of PayNeary, allowing business correspondents to collect self-declarations and assist with biometric-based e-KYC, will allow banks to efficiently reach customers in areas with limited branches.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
34 minutes ago
- Time of India
CRDA clears 1,052 cr plan for Amaravati govt infra
1 2 3 Vijayawada: The 49th meeting of the Capital Region Development Authority (CRDA) approved the proposal to call tenders for essential infrastructure in the Amaravati govt complex. The CRDA authority meeting, chaired by chief minister Chandrababu Naidu, also approved the proposal to connect the seed access road to National Highway 16. The govt complex infrastructure works will be undertaken with Rs 1,052 crore. The infrastructure works include the development of roads, drains, water supply, power, and ICT cables. Naidu suggested connecting the E-5 road directly to the national highway instead of the earlier design. The cost of these works is estimated to be about Rs 682 crore, and tenders will be called soon, said the minister for municipal administration and urban development. The green and blue concept was also discussed in the CRDA meeting. As 30% of the total area of Amaravati is allocated for green and blue, as against 10% in Indian standards, the chief minister is very particular on the subject, said Narayana. He said that the chief minister discussed various aspects of the green and blue concept with the experts and gave a mandate to ensure Amaravati will be one of the top cities in the world with the highest green and blue cover. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Het meest ontspannende boerderijspel van 2025. Geen installatie Taonga: la fattoria sull'isola Play Now Undo Narayana further said that sanitation, solid waste systems, parks maintenance, and riverfront greenery in Lucknow city were studied by a group of officials. He said that the best practices in various cities are being adopted and implemented in Amaravati. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
Time of India
35 minutes ago
- Time of India
Peerless General Finance forays into real estate biz
Peerless General Finance & Investment Company, restricted from public deposits since 2011, is venturing into real estate with its first independent project, Trayam, in Kolkata's Rajarhat. This move signifies the company's transformation and investment diversification. The project includes residential, retail, and commercial spaces, aligning with PGFI's objectives and RBI regulations for NBFCs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Kolkata: Peerless General Finance & Investment Company, which has been in financial services distribution ever since it was barred from mobilising public deposit in 2011, is now exploring a life in real non-banking finance company is all set to launch its first independent real estate project in the city, targeting the affluent segment. The project is being built in Rajarhat Action Area 1 , the satellite township of Kolkata. The project is spread across 2.67 Peerless group has several other housing projects shaping Bengal's skyline over the past three decades through a joint venture with the state government called Bengal Peerless Housing Development Company 'This project represents our next chapter in real estate—crafted with care, backed by legacy, and designed for the future. It is also an external manifestation of the transformation that Peerless as a group is effecting internally,' PGFI managing director Jayanta Roy said, unveiling the project named Trayam."In addition to augmenting its investment activities, the company is actively exploring avenues for monetising its real estate properties. To this effect, the company has embarked on a 'one of its kind' real estate development project comprising residential, retail and commercial under one roof titled Trayam," PGFI said in its directors' report in no restriction for an NBFC to undertake non-financial activities, as long as it fulfils the principal business criteria of having financial assets of more than 50% of its total assets and financial income more than 50% of its total income, an senior company official explained."PGFI fulfils the same as per RBI requirements," he said, adding that the memorandum of association of the company has development of real estate projects in its objects clause.
Time of India
an hour ago
- Time of India
Fish boom: Local entrepreneurs thrive as output triples in state
Patna: Women and small-scale entrepreneurs in Bihar are reaping the benefits of the state's fisheries initiatives with fish production tripling over the past two decades. Jyotsna Singh from Pura village in Samastipur district has become self-reliant through fish seed production and now employs 20 people. She received a grant of Rs15 lakh in 2023 from the fisheries department to set up a hatchery, which proved highly successful. Similarly, Laxmi Sahni, Sheela Devi, Pramod Kumar Sahni, Rani Kumari and Seeti Devi from Raipur village in Sarairanjan block are engaged in fish farming over approximately eight hectares. They produce 10-15 tonnes of fish annually, earning Rs13 to Rs18 lakh. A state govt report released on Friday revealed that fish production in Bihar rose from 2.68 lakh metric tonnes in 2005 to 8.73 lakh metric tonnes in 2023-24, a threefold increase over 19 years. Officials said this growth was driven by several schemes under the state's agriculture road map, including the Chief Minister Integrated Wetland Development Scheme, Reservoir Fisheries Development Scheme, Private Pond Renovation Scheme, the River Restoration Programme and the centrally sponsored Pradhan Mantri Matsya Sampada Yojana. Under the Wetland Development Scheme, 461 hectares have been converted for fish farming. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo Model-based pond construction in districts with abundant wetlands is rapidly increasing output. To support fish traders, 30 fish markets are being established across selected blocks. Also, modern techniques like biofloc and RAS (recirculating aquaculture system) technologies are being adopted. So far, 439 biofloc units and 15 RAS units have been established. To further enhance production in rivers such as the Ganges, Gandak, and Burhi Gandak, 61.81 lakh fish seeds were released during the current financial year. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
