RBI Allows KYC Updates via Banking Correspondents | Self-Declarations

Circular No. RBI/2025-26/53 DOR.AML.REC.31/14.01.001/2025-26, Dated: 12-06-2025

The Reserve Bank of India (RBI) has revised the Know Your Customer (KYC) norms to make the KYC updation process more accessible, particularly for customers in rural and underserved areas. The new measures are aimed at reducing service delays and ensuring wider financial inclusion.

1. KYC Updation Now Possible Through Banking Correspondents

Under the updated norms:

• Authorised Banking Correspondents (BCs) can now facilitate KYC updation on behalf of banks.
• In cases where:

1. 1. There is no change in the customer’s KYC information, or
   2. The only change is in the address details,
      the customer can submit a self-declaration, which can be collected directly by the authorised BC.

This step is particularly beneficial for customers in remote areas who may not have easy access to physical bank branches.

2. Objective – Streamline Process and Improve Access

RBI’s move is aimed at:

• Simplifying the KYC updation process
• Minimising disruptions in banking services due to outdated KYC
• Ensuring timely compliance without placing unnecessary burden on customers
• Promoting the use of BC networks to bridge the gap between formal banking and rural populations

3. KYC Camps in Rural and Semi-Urban Areas

To support this initiative, RBI has also advised banks to:

• Organise special KYC updation camps, particularly in:

1. 1. Rural and
   2. Semi-urban branches

• Focus on branches with high pendency in KYC updates
• Educate customers on the ease of updating KYC through self-declarations and BC channels

Such proactive outreach is expected to enhance compliance, reduce backlogs, and maintain uninterrupted banking services for a broader segment of the population.

4. Conclusion

The updated KYC norms reflect RBI’s commitment to customer-centric regulation. By leveraging banking correspondents and community engagement, the central bank aims to improve efficiency, accessibility, and compliance in the KYC updation process—ultimately reinforcing financial inclusion at the grassroots level.

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