RBI Simplifies KYC to Accelerate Financial Inclusion
The Reserve Bank of India (RBI) has revised its KYC (Know Your Customer) norms under the 2025 Amendment Directions, aiming to make banking more accessible and inclusive. These changes simplify customer onboarding, especially benefiting first-time users and government scheme beneficiaries.
The revised guidelines offer three flexible onboarding options:
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Face-to-Face Onboarding: Aadhaar-based biometric e-KYC is now permitted. If the customer’s current address differs from their Aadhaar, a self-declaration suffices. Digital KYC is also accepted during in-person interactions.
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Non-Face-to-Face (NFTF) Onboarding: Remote account opening is allowed through Aadhaar OTP-based e-KYC, subject to conditions. Banks can verify using DigiLocker, e-documents, or certified paper copies. Full Customer Due Diligence (CDD) must be completed within a year.
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Video KYC (V-CIP): Customers can complete identity verification via secure, live video with a bank representative. This method is now equivalent to face-to-face onboarding.
Additional measures include mandatory use of the Central KYC Registry (CKYCR) to retrieve existing KYC records, reducing document redundancy. Business Correspondents (BCs) can assist with onboarding in rural areas. Banks are also encouraged to hold special KYC camps and adopt a lenient approach to reactivating welfare-linked accounts, enhancing access to financial services for all.
