Latest news with #DBTs
Economic Times
30-07-2025
- Business
- Economic Times
DBT recipients of central schemes to face fresh audit
The Centre is set to conduct a comprehensive assessment and Aadhaar-based KYC verification of beneficiaries under various welfare schemes by December, aiming to update data before the next Finance Commission cycle. This exercise will ensure Aadhaar seeding and authentication for direct benefit transfers, potentially tweaking schemes for better efficiency based on verification insights. DBT has increased significantly in a decade. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: The Centre will conduct a fresh assessment and verification of beneficiaries receiving direct benefit transfers (DBTs) under various central welfare schemes , including Ujjwala Yojna , PM-Kisan, free food scheme, PM Awaas Yojna Public Distribution System and others by December. This exercise aims to update beneficiary data ahead of the next Finance Commission cycle starting April the exercise is done from time to time, this time the concerned ministry will perform a fresh Aadhaar-based know your customer (KYC) verification along with states to weed out any possibility of gaps between states and centre's is a clear mandate to the ministry to ensure every beneficiary of the social welfare scheme has an Aadhar card and his bank account attached with an Aadhar card."While the process keeps on happening from time to time, this will be a wider exercise," a senior official told the KYC verification process each ministry will also seek a wider list of documents, including Aadhar of other family members or other information as decided by the respective ministry to suit their reason for doing this is that the government is placing great emphasis on Aadhaar seeding and transfer of direct benefit through Aadhaar authentication and there is a clear mandate to modify all existing schemes accordingly."In cases where there is disbursement of the funds, the mandate is that all future schemes should be done through the Aadhaar Enabled Payment System (AEPS) to ensure Aadhaar authentication, and not merely Aadhaar seeding," the official said, adding that all the future schemes from the next financial year have to be designed or modified official said the ministry will use the inputs during the verification to assess the intended impact and "tweak the scheme" wherever required or amend the criteria to avail the schemes instance, in FY25, around 22 million beneficiaries did not avail free grains for 3 to 12 months."This means that either there is a gap, or they no longer require it," the official added. "The effort is to make the schemes more efficient," the official has been a more than ninety times increase in direct benefit transfer (DBT) in just a decade from over 7 thousand crores in 2014, DBT has risen to 6.83 lakh crore in the FY25.
Time of India
23-05-2025
- Business
- Time of India
Periodic KYC update in bank account to become easier; RBI proposes new draft rules, allows time till June 30, 2026, to do KYC for these customers
Time till June 30, 2026, to do KYC for these bank customers whose periodic KYC update is due Live Events Provide due notices for KYC updation to the customers Use Business Correspondent to do KYC in certain cases Simplification of periodic KYC updation Ease of KYC for first time customers The Reserve Bank of India (RBI) has issued draft proposals for changes in the process of periodic updation of the Know-Your-Customer (KYC) in bank accounts. The proposed rules are expected to make bank customers' lives easier due to the requirement of periodic KYC updation As per the RBI, 'The Reserve Bank has observed a large pendency in periodic updation of KYC, including in the accounts opened for credit of Direct Benefit Transfer (DBT)/ Electronic Benefit Transfer (EBT) under Government schemes to facilitate credit of DBTs and/ or scholarship amount (DBT/ EBT/ scholarship beneficiaries) and accounts opened under PMJDY. Reserve Bank has also been receiving complaints regarding challenges faced by the customers in periodic updation of their KYC.'The comments on the draft Amendment Directions are invited from the public/ stakeholders tillAs indicated by the draft, bank customers will be in various risk categories. All bank customers are required to update their KYC periodically as communicated by their respective banks. As per the new rules, if a bank customer is categorised as low-risk, then he shall be allowed transactions for one year or till June 30, 2026, whichever is per the draft, 'Notwithstanding the provisions given above, in respect of an individual customer who is categorised as low risk, RE shall allow all transactions and ensure the updation of KYC within one year of its falling due for KYC or upto June 30, 2026, whichever is later. The RE shall subject accounts of such customers to regular monitoring. This shall also be applicable to low-risk individual customers for whom periodic updation of KYC has already fallen due.'The RBI, in its draft proposal, has asked the banks to provide adequate notices to the customers when the KYC in their bank accounts become due. The banks are required to give at least three advance intimation regarding periodic KYC per the draft proposal, 'RE shall intimate its customers, in advance, to update their KYC. Prior to due date of periodic updation of KYC, RE shall give at least three advance intimations, including at least one intimation by letter, at appropriate intervals to its customers through available communication options/ channels for complying with the requirement of periodic updation of KYC.'In case the customer is unable to do the periodic KYC updation within the due period, banks are required to give three reminders about the KYC as well.'Subsequent to the due date, RE shall give at least three reminders, including at least one reminder by letter, at appropriate intervals, to such customers who have still not complied with the requirements, despite advance intimations. The letter of intimation/ reminder may, inter alia, contain easy to understand instructions for updating KYC, escalation mechanism for seeking help, if required, and the consequences, if any, of failure to update their KYC in time. Issue of such advance intimation/ reminder shall be duly recorded in the RE's system,' as per the draft rule proposed by the RBI in its draft is the use of Business Correspondent (BC) by banks for the updation/periodic updation of KYC. This proposal will help the bank customers to visit their nearest BC to do the KYC as mandated under the KYC rules. However, customers can do their KYC via BC only if there is limited per the draft proposal, 'Self-declaration from the customer in case of no change in KYC information or change only in the address details may be obtained through an authorised BC of the bank. In such case, after successful biometric-based e-KYC authentication, the bank shall obtain the self-declaration, including the supporting documents, if required, from the customer through the BC. A bank may enable its BC systems for recording these self-declarations and supporting documents thereof in electronic form in the bank's systems. In case such an option is not available in the electronic mode and such a declaration is submitted in physical form by the customer, the BC shall authenticate the self-declaration and supporting documents submitted in person by the customer, and promptly forward the same to the concerned bank branch. The BC shall provide the customer an acknowledgement of receipt of such declaration /submission of documents. The bank branch shall update the customer's KYC records and intimate the customer once the records get updated in the system, as required under paragraph 38(c) of the Master Direction ibid. It is reiterated that the ultimate responsibility for periodic updation of KYC remains with the bank.'The RBI, in the draft, is proposing the simplification of updation and periodic KYC. This includes:i) Self-declarations - REs are allowed to obtain self-declaration regarding 'no change in KYC information' or 'a change only in address details' from customers using digital and non-digital modes, through customer's email / mobile number registered with the RE, ATMs, digital channels (such as online banking / internet banking, mobile application of RE), letter, BCs, etc.(ii) The updation/ periodic updation of KYC records are allowed to be carried out at any branch of the RE with which customer maintains the account.(iii) Aadhaar OTP based e-KYC and V-CIP are permitted for the purpose of updation/ periodic updation of KYC. (iv) REs have been directed to update customers' KYC information/ records based on the update notification received from from making the process of KYC updation easier, the RBI is also trying to ease the KYC process for first-time customers. The central bank has provided three ways for banks to do the KYC of first-time per the draft proposal, the customer's KYC can be done via Aadhaar biometric based e-KYC. 'Customer may be onboarded in face-to-face mode through Aadhaar biometric based e-KYC authenticating and, in such case, if customer wants to provide a current address, different from the address as per the identity information available in the UIDAI database (i.e., Central Identities Data Repository), he may give a self-declaration to that effect to the RE (ref. paragraph 16 of the Master Direction on KYC). Further, the Digital KYC process is also allowed for customer onboarding,' said the draft proposal.A bank can use either of the two ways to do KYC of a customer in NFTC mode. The first method is consent-based. As per the draft proposal, 'Consent-based onboarding of customer in NFTF mode may be done using Aadhaar OTP based e-KYC authentication which is subject to certain conditions (ref. paragraph 17 of the Master Direction on KYC). Further, such account shall be placed under strict monitoring, and Customer Due Diligence (CDD) procedure shall be completed within a year. 'The second method is the use of digital modes for KYC. 'Customer onboarding in NFTF mode using digital modes such as KYC Identifier, equivalent e-documents, documents issued through DigiLocker, and non-digital modes such as obtaining copy of OVD certified by additional certifying authorities as allowed for NRIs and PIOs are subject to certain conditions,' as per the draft third process is the video-based customer identification process (V-CIP). As per the RBI draft, the video based process is treated on par with face-to-face onboarding. 'V-CIP is an alternate method of Customer Due Diligence by an authorised official of the RE by undertaking seamless, secure, live, informed and consent-based audiovisual interaction with the customer to obtain identification information required for customer due diligence purpose.'
