RBI Proposes Draft Amendments to KYC Master Directions to Streamline Compliance.

Banking & Finance

In May 2025, the Reserve Bank of India (RBI) released a draft circular titled "Updation/Periodic Updation of KYC - Revised Instructions," proposing amendments to the existing Know Your Customer (KYC) Master Directions (MD).


      - These proposed changes aim to streamline the KYC process, reduce compliance burdens, and enhance customer convenience, especially for low-risk individuals and beneficiaries of government welfare schemes.

     

     

Main Point :-   (i) Banks shall allow customers to update their KYC details at any branch, including non-home branches, to reactivate dormant or inoperative accounts.

      (ii) Upon customer request, banks may offer remote KYC updation through Video-based Customer Identification Process (V-CIP), subject to the availability of this facility within the respective bank.

(iii) Banks may engage authorised Business Correspondents (BCs) to collect KYC documents and assist customers in reactivating inoperative accounts.

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