The Reserve Bank of India (RBI) has issued new guidelines to simplify the process of completing KYC (Know Your Customer) for dormant or inactive bank accounts. As per the new rules announced on Thursday, customers no longer need to visit the same branch where they opened their account. Instead, they can visit any branch of their bank to update KYC.
KYC Can Be Done via Video Call
According to RBI’s updated rules, customers can now also complete their KYC through a video call. This process is called Video Customer Identification Process (V-CIP). It is especially useful for senior citizens, NRIs (Non-Resident Indians), and people living in remote or rural areas, as it saves them from visiting a bank branch physically.
Banking Correspondents Can Update KYC Too
RBI has allowed banking correspondents (agents appointed by banks) to assist customers in updating their KYC or completing periodic KYC updates. Banks are required to send at least one notice by post and three advance reminders to customers informing them about the KYC update requirement.
Transactions Allowed Even Without KYC (for Low-Risk Customers)
In a major relief, RBI’s instructions state that low-risk customers must be allowed to perform transactions even if their KYC is pending. Customers have time until June 30, 2025, to update their KYC details.
