Account holders need not visit bank to update KYC, says RBI

Bank account holders are no longer required to visit their bank branches to update ‘know your customer’ (KYC) details provided they have already submitted valid documents and have not changed their address.

The process for the periodic updation of KYC (re-KYC) under the prevention of Money Laundering Act, 2002 (PMLA) and rules framed thereunder was simplified in May 2021 (Section 38 of RBI Master Direction on KYC.

A bank should not be demanding a customer to walk into the branch for verification/updates. There is no such rule from the Reserve Bank that customers must visit the branch for the re-KYC process. In terms of the present guidelines, if there is no change in KYC information, a self-declaration to that effect from the individual customer is sufficient to complete the re-KYC process.

Banks have been advised to provide the facility of such self-declaration to individual customers through various non-face-to-face channels such as registered email id, registered mobile numbers, ATMs, digital channels (such as online banking/internet banking, mobile application), letters, etc., without need for a visit to a bank branch.

However, if there is only a change in address, customers can furnish a revised/updated address through any of these channels after which, the bank would undertake verification of the declared- address within two months.

“Individual customers of banks are encouraged to get more information on the different options available to them from their bank for (a) completing re-KYC (Such as submission of self-declaration through various non-face-to-face channels or completing fresh KYC by visiting a bank branch or remotely through V-CIP”, said RBI.

Source: RBI press release: 2022-2023/1500 dated 05.01.2023