Mumbai: The Reserve Bank of India (RBI) has introduced changes to its Know Your Customer (KYC) rules aimed at easing account opening, especially for first-time users and rural populations.
The amendments, notified under the RBI (KYC) (Amendment) Directions, 2025, provide more flexibility in how banks onboard customers, allowing for Aadhaar-based verification, video KYC, and use of DigiLocker documents. The revised guidelines are positioned to support financial inclusion goals and streamline compliance without compromising due diligence.
Three Account Onboarding Options Detailed
The updated directions outline three modes for KYC:
1. Face-to-Face Onboarding
Customers can open accounts using Aadhaar biometric-based e-KYC.
If the current address is different from the Aadhaar address, a self-declaration is now acceptable.
Digital KYC can also be completed in person, reducing paperwork.
2. Non-Face-to-Face (NFTF) Onboarding
Remote onboarding is allowed using Aadhaar OTP-based e-KYC, under specific conditions.
Banks may accept DigiLocker documents, certified copies, or other verified e-documents.
Full customer due diligence must be completed within one year for accounts opened through this method.
3. Video-Based Customer Identification Process (V-CIP)
Identity verification through secure, consent-based video interaction is now equated with physical presence.
This method can be used for both account opening and updating KYC records.
Other Key Measures
Central KYC Registry Use Made Mandatory
Banks must now access a customer’s existing KYC data from the Central KYC Registry (CKYCR), with consent. This is intended to reduce duplication in document collection and simplify onboarding and KYC update processes.
Role of Business Correspondents Expanded
Business Correspondents (BCs) are now permitted to assist with onboarding and KYC updates, enabling banks to extend services in rural and underserved regions.
Guidance on Welfare Scheme Accounts
Banks have been advised to adopt a more flexible stance when reactivating dormant accounts linked to welfare schemes. The aim is to ensure continued access to financial services for scheme beneficiaries.
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