https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

RBI Simplifies KYC Process with Aadhaar OTP & Video Verification to Ease Customer Burden & Boost Compliance

The central bank observed a significant backlog in periodic KYC updates, especially in accounts linked to Direct Benefit Transfers (DBT) and the Pradhan Mantri Jan Dhan Yojana (PMJDY).
Indian Masterminds Stories

Mumbai: The Reserve Bank of India (RBI) has normalized and simplified the Know Your Customer (KYC) updation process by amending its Master Direction on KYC, originally issued on February 25, 2016. The move aims to address growing customer grievances and streamline compliance for accounts under schemes like DBT, EBT, and PMJDY.

Addressing Large Pendency and Customer Complaints
The central bank observed a significant backlog in periodic KYC updates, especially in accounts linked to Direct Benefit Transfers (DBT) and the Pradhan Mantri Jan Dhan Yojana (PMJDY). Customers frequently reported difficulties in meeting KYC update requirements, prompting the RBI to revise the framework to enhance convenience without compromising security.

Key Changes in KYC Onboarding and Updation

Face-to-Face Mode:

  • Customers can complete KYC using Aadhaar biometric-based e-KYC.
  • A self-declaration for a different current address (from Aadhaar) is now acceptable.

Non-Face-to-Face (NFTF) Mode:

  • Consent-based Aadhaar OTP-based e-KYC is permitted, subject to conditions.
  • Such accounts require strict monitoring, and full Customer Due Diligence (CDD) must be completed within a year.

Digital & Non-Digital Alternatives:

  • Use of KYC Identifier, DigiLocker documents, and other equivalent e-documents is allowed.
  • NRIs and PIOs may submit certified physical copies of Officially Valid Documents (OVDs).

Streamlined KYC Updation

  • Customers can now submit self-declarations confirming either “no change” or “only address change” in KYC information.
  • Accepted via email, SMS, ATMs, online/mobile banking apps, letters, business correspondents, and other digital or physical means.
  • KYC updates can be done at any branch of the Regulated Entity (RE) where the customer holds an account.
  • Aadhaar OTP and Video-based Customer Identification Process (V-CIP) are allowed for KYC updates.

Focus on Convenience and Financial Inclusion
This overhaul is part of RBI’s broader commitment to financial inclusion, digital ease of access, and regulatory compliance. It is expected to particularly benefit customers in rural and remote areas, government scheme beneficiaries, and digitally active users, by removing bottlenecks in periodic KYC compliance.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
OP Singh Mumbai
International Fire Safety Conference 2025: Former DGP O.P. Singh Advocates for Drones and Digital Solutions
Indias Automobile sector auto segment
Big News for Auto Sector: India Tightens CAFE 3 Norms from 2027; Relief for Small Petrol Cars, Boost for EVs & Hybrids
NBCC Holds 65th AGM
NBCC Holds 65th AGM; Reports Record Revenue, Declares Highest-Ever Dividend and Expands Global Presence
IAS Vikas Sheel
Who Is Vikas Sheel? The IAS Officer Recalled from Abroad and Appointed Chief Secretary of Chhattisgarh, to Assume Charge on Sept 30
Kerala-police-resized
Kerala Govt Transfers 7 IPS Officers; Vigilance SP in Ajith Kumar Case Among Key Moves
GAIL PSU
GAIL India Announces ₹5,350 Crore Jamnagar-Loni LPG Pipeline Expansion to Strengthen Clean Fuel Network 
SP Vaid
Former J&K DGP SP Vaid Supports CDS Anil Chauhan’s Statement on 1962 War: “Use of IAF Could Have Blunted Chinese Attack”
HURL interim dividend FY26
Historic Dividend Payout: HURL Marks Milestone with Rs 1,343 Crore Interim Dividend, Reflecting Strong Growth
ADVERTISEMENT
ADVERTISEMENT
Videos
Siddhartha Saxena UPSC CAPF
How Siddhartha Saxena Cracked UPSC CAPF AIR 326 Against All Odds
Dr. S.K
Technology Meets Ecology: IFS Dr S K Srivastava’s Game-Changing Innovations in Forest Management | Eco Warrior Awards 2025 Interview
IFS Uttam Kumar Sharma Interview
From Extinction to Exhilaration: The Untold Story and Future Vision of Project Cheetah | Led by IFS Uttam Kumar Sharma | Eco Warrior Awards 2025
ADVERTISEMENT
UPSC Stories
Abhay Daga IPS UPSC Success Story
IIT Graduate, Microsoft Alum, Actor, to Cracking UPSC CSE: The Story of Abhay Daga
Read the inspiring journey of Abhay Daga, an IIT graduate, Microsoft alum, and actor, who cleared UPSC...
Rishav Awasthi MPPSC Risabh Awasthi MPPCS
Family’s Dream, His Determination: How Small-Town Dreamer Rishav Awasthi Conquered MPPSC 2024 with Rank 2 | Exclusive
After two failed attempts, Rishav Awasthi secured Rank 2 in MPPSC 2024, driven by family support, self-study,...
Harshita Dave MPPSC 2024
The Girl Who Turned Dreams Into a Deputy Collector Post at 22: Meet MPPSC 2024 Women Topper Harshita Dave
At just 22, Harshita Dave topped MPPSC 2024, becoming the women topper and securing Rank 5. Her journey...
Social Media
World Rhino Day India
On World Rhino Day, IFS Officer Parveen Kaswan Shares Rare Insights - India Now Hosts 80% of the World’s One-Horned Rhinos
September 22 Marks Global Call for Rhino Conservation; India Holds 80% of World’s Greater One-Horned...
Parag Madhukar Dhakate
Relentless Rains Wreak Havoc in Dehradun: IFS officer PM Dhakate Warns Citizens Amid Flash Floods
Cloudbursts in Dehradun triggered flash floods. IFS officer Dr. PM Dhakate warned citizens to stay indoors...
Forest Guard Tiger Encounter
Tigers Clash in the Wild as Forest Guards Capture Rare Footage , Retired IFS Mohan Pargaien Posts Viral Video
Retired IFS officer Mohan Pargaien shares viral video of three tigers brawling in Ramnagar, as forest...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
OP Singh Mumbai
International Fire Safety Conference 2025: Former DGP O.P. Singh Advocates for Drones and Digital Solutions
Indias Automobile sector auto segment
Big News for Auto Sector: India Tightens CAFE 3 Norms from 2027; Relief for Small Petrol Cars, Boost for EVs & Hybrids
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Siddhartha Saxena UPSC CAPF
Dr. S.K
IFS Uttam Kumar Sharma Interview
ADVERTISEMENT
ADVERTISEMENT