Latest news with #Video-basedCustomerIdentificationProcess
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Business Standard
2 days 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.
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
