Latest news with #V-CIP
Mint
20 hours ago
- Business
- Mint
Did not operate your bank account for 10 years? RBI revises rules on inoperative bank accounts. Check latest rules
The Reserve Bank of India (RBI) has updated its rules with regards to inoperative accounts/ unclaimed deposits in banks. The latest instructions which will be called Inoperative accounts/ unclaimed deposits in banks - Revised instructions (Amendment) 2025 will come into force with immediate effect. As of now, the credit balance in any deposit account maintained with banks, which have not been operated for ten years or more, or any amount remaining unclaimed for ten years or more are meant to be transferred by banks to DEA fund maintained by the Reserve Bank of India (RBI). The DEA fund is meant to be used for promotion of depositors' interests and for such other purposes which may be necessary for the promotion of depositors' interest as may be specified by the RBI on a regular basis. The latest guidelines released on June 12 list out three points. First is that the bank will make available the facility of updation of KYC for activation of inoperative accounts and unclaimed accounts at all branches including non-home branches. Second is that the updation of KYC will also include video identification i.e., video customer identification process. Third is that the bank may even use the facilities of authorised business correspondent for activation of inoperative accounts. 'A bank shall make available the facility of updation of KYC for activation of inoperative accounts and unclaimed deposits at all branches (including non-home branches). Further, a bank shall endeavour to provide the facility of updation of KYC in such accounts and deposits through Video-Customer Identification Process (V-CIP),' reads RBI circular. 'The V-CIP related instructions under Master Direction - Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time) shall be adhered to by the bank. Additionally, the services of an authorised Business Correspondent of the bank may be utilised for activation of inoperative accounts as prescribed in paragraph 38(a) (iia) of the above Master Direction,' it reads further. For all personal finance updates, visit here
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Business Standard
a day ago
- Business
- Business Standard
RBI makes it easier to access, reactivate dormant accounts, deposits
The Reserve Bank of India (RBI) has issued new guidelines to reactivate bank accounts and access unclaimed deposits, giving relief to customers and heirs trying to claim forgotten assets. Banks must offer more accessible options for updating Know Your Customer (KYC) information needed to reactivate a dormant account, according to the new guidelines. What are inoperative accounts, unclaimed deposits RBI norms say that if a savings or current account hasn't been operated for 10 years or more, or if any deposit remains unclaimed for a similar period, it is considered 'inoperative.' The funds in such accounts are transferred to the Depositor Education and Awareness (DEA) Fund maintained by the RBI. Claiming money from these accounts involved a physical visit to the home branch and complicated paperwork. What's new in the updated rules? The RBI, in a circular dated June 12, has amended its earlier guidelines from January 2024. Here's what has changed: KYC update at any branch: Customers can now update their KYC not just at the home branch, but at any branch of their bank. Video KYC allowed: Banks have been directed to facilitate Video-based Customer Identification Process (V-CIP) for reactivating inoperative accounts. This enables customers to verify their identity remotely through a video call. Business correspondents: Banks may also use the services of their authorised Business Correspondents to help customers complete the KYC process. This could be particularly useful in rural and remote areas where physical branches are limited. Why does this matter If you or your family members have forgotten about an old deposit or know of a relative's account lying dormant, these new rules could help you access those funds more easily. The convenience of video KYC and branch flexibility will reduce the burden of paperwork and travel, key for senior citizens, NRIs, and heirs claiming deceased family members' funds. What to do next? Check with your bank if you suspect an old account might have gone dormant. Contact customer service or visit any nearby branch to start the KYC process.
The Hindu
2 days ago
- Business
- The Hindu
RBI allows BCs to update KYC information
Reserve Bank of India (RBI) eased the Know Your Customer (KYC) norms for convenience of the customer according to a circular released June 12. Banks shall complete the KYC updation of customers who are flagged as 'low risk' whose KYC have not been updated, within a year or June 2026, whichever is later. Moreover, the Central bank also introduced the facility to upload KYC through video. The facility is called Video based Customer Identification Process (V-CIP) for customer onboarding and information updation. RBI also said banks shall enable its banking correspondents to undertake the KYC updation activity. These facilities shall be provided to reactivate inoperative accounts, RBI said in a separate circular. Banks have been advised to reach out to semi-urban and rural areas and set up camps to complete the process. The circular becomes important at a time when a lot of PMJDY accounts were reportedly inoperative due to difficulties in KYC updation and eligible beneficiaries for Direct Benefit Transfer based schemes faced snags in withdrawing money. 'Simplifying KYC while maintaining regulatory safeguards will enable the ecosystem to onboard customers faster, reduce friction, and accelerate the adoption of formal financial services,' said Payments Council of India (PCI) in its release.
Time of India
2 days ago
- Business
- Time of India
RBI amends KYC rules to allow face-to-face, video and OTP-based onboarding for customers
The Reserve Bank of India (RBI) on Thursday introduced a series of amendments to its Know Your Customer (KYC) norms aimed at making customer onboarding faster, more flexible, and accessible across both digital and physical channels. Under the RBI (KYC) (Amendment) Directions, 2025, the central bank has laid out simplified procedures for onboarding customers using Aadhaar-based e-KYC, video KYC, and DigiLocker documents . The move is intended to support inclusive banking and ease the process for first-time users, especially those joining through government schemes like DBT, EBT, and PMJDY. Three key modes of customer onboarding: 1. Face-to-face onboarding Customers can open accounts using Aadhaar biometric-based e-KYC. If the current address differs from the Aadhaar address, a simple self-declaration is sufficient. Digital KYC is also permitted in in-person setups. 2. Non-face-to-face onboarding (NFTF) Customers can be onboarded remotely using Aadhaar OTP-based e-KYC, subject to specific conditions. Banks can also accept DigiLocker documents, e-documents, and certified paper copies for verification. Accounts opened through NFTF must complete full Customer Due Diligence (CDD) within one year. 3. Video-based Customer Identification Process (V-CIP) V-CIP enables live, secure, consent-based video interaction with a bank official for identity verification. It is considered equivalent to face-to-face onboarding and is valid for both account opening and KYC updates. Additional measures to streamline onboarding: Central KYC Registry (CKYCR) integration: Banks must use the CKYCR to fetch a customer's existing KYC record with consent, avoiding the need for repeated document submissions. Business Correspondents (BCs): BCs are now authorised to assist in onboarding and KYC updates, increasing reach in rural and remote areas. Empathetic reactivation: Banks have been advised to take a lenient view while reactivating accounts opened under welfare schemes. The RBI has also asked banks to conduct special onboarding and KYC update camps and run targeted awareness campaigns in rural and semi-urban areas to bring more users into the formal banking system. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Promoções imperdíveis de voos baratos Voos | Anúncios de Pesquisa Saiba Mais Undo
News18
24-05-2025
- Business
- News18
RBI Proposes Simpler KYC Rules: No Document Resubmission For Minor Changes, Self-Declaration Enough
Last Updated: For routine KYC updates, individuals will soon be able to use a simple self-declaration to confirm that their info hasn't changed, or that only their address has been updated. The Reserve Bank of India (RBI) has proposed significant changes to its Know Your Customer (KYC) guidelines, aiming to simplify the process of both onboarding new customers and updating identification documents. This initiative is a direct response to customer feedback and seeks to streamline operations for financial institutions, including banks and NBFCs. The core of the new proposals centres on customer convenience. For routine KYC updates, individuals will soon be able to use a simple self-declaration to confirm that their information hasn't changed, or that only their address details have been updated. This declaration can be submitted through various digital channels, including registered email, mobile numbers, ATMs, and online banking applications. This move aligns with RBI Governor Sanjay Malhotra's vision of reducing repetitive documentation. He emphasized that once a customer has provided documents to a financial institution, they shouldn't be asked for the same paperwork again. 'We need to ensure that once a customer has submitted documents to a financial institution, we do not insist on obtaining the same documents again," the RBI governor said in March. The RBI is also expanding options for periodic KYC updates, allowing them to be completed at any branch of a bank or office of a financial institution where a customer holds an account. Furthermore, Aadhaar OTP-based e-KYC and Video-based Customer Identification Process (V-CIP) will now be accepted for these updates, offering greater flexibility. Addressing a common pain point, the new rules will allow customers using Aadhaar biometric e-KYC for face-to-face onboarding to provide a self-declaration if their current address differs from the one in the UIDAI database. However, for non-face-to-face onboarding, accounts will face strict monitoring, requiring full due diligence within a year. These proposed changes are a direct effort to tackle the numerous customer complaints regarding the challenges of periodic KYC updates and the large backlog in such cases, particularly for accounts receiving direct benefit transfers (DBT) under government schemes. The RBI has opened these proposals for public comment. First Published: May 24, 2025, 09:13 IST
