Re-KYC of Bank Accounts: All you need to know about the latest RBI Guidelines

KYC requirements for Bank Accounts as per the latest RBI press release of 5th January 2023

 KYC requirements for Bank Accounts as per the latest RBI

From time to time, the Reserve Bank has implemented measures to simplify the Know Your Customer (KYC) related instructions, taking into consideration the available technological solutions for increasing customers' ease of access, while adhering to the regulations specified in the Prevention of Money Laundering Act, 2002 (PMLA) and its accompanying rules. This article looks into the RBI's statement (dated 5th January 2023) which stresses the significance of keeping customer KYC details up-to-date, as well as the various processes, regarding the bank account requirements.

What if there is no change in KYC details?

If a customer's Know Your Customer (KYC) information has not changed, they can submit a self-declaration to finish the re-KYC process. Banks have been urged to let customers make these declarations through various non-personal mediums, such as a registered mobile number, registered email, digital platforms (e.g mobile application, internet/online banking), ATMs, etc., without needing the customer to go to a bank branch.

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What to do if there's a change in address?

In case of only a change in address, customers can easily submit their updated address through any of the available non-personal mediums (mentioned above). The bank will then verify the updated address within two months. 

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What steps should be taken if new KYC information is required?

When a customer's Know Your Customer (KYC) documents on file with the bank do not comply with the current list of legally acceptable documents (such as a passport or driver's license) or the validity of previously submitted documents has expired, banks must update their records with latest (current) information by conducting regular reviews and updates. This may require a new KYC process or additional documentation. Banks must also acknowledge receipt of any KYC documents or self-declarations submitted by the customer.

Obtaining new Know Your Customer (KYC) information can be done either by visiting a bank branch or, if the bank offers this option, through a remote Video-based Customer Identification Process (V-CIP).

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How to update KYC (if an account holder is minor)?

The RBI has stated that for customers who were underage when their accounts were set up, banks should acquire new photographs of them once they reach the age of an adult. 

Customers are no longer required to visit a bank branch to complete the re-KYC process if their KYC information remains unchanged. Banks have been encouraged to allow customers to make self-declarations through various non-face-to-face channels. The bank will then verify the update within two months. Banks are required to update their records periodically to ensure their KYC documents comply with the current list of Officially Valid Documents (e.g. passport, driving license, etc). This can be either done by a customer visiting a bank branch or remotely (customer interacting with the bank) through a Video based Customer Identification Process (V-CIP). Upon submission of the KYC documents, banks are mandated to acknowledge their receipt.

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