Re-KYC in a nutshell: It's like a periodic check-up for your bank account. Banks periodically verify your details (documents, contact information, etc.) collected at account opening to ensure they're accurate and current. This happens at regular intervals based on RBI guidelines and your risk profile.
Risk-based classification of customers
Risk-based approach: Banks categorize customers based on factors like identity, financial status, and business activity. This determines how often your KYC needs updating.
- High-risk : Update every 2 years at your branch with fresh documents
- Medium-risk : Update every 8 years at your branch with fresh documents.
- Low-risk : Update every 10 years, potentially remotely if no address change.
- Low-risk convenience : For low-risk customers, re-KYC can be a breeze! No branch visits are needed if your address hasn't changed. Simply update through
- Internet banking :
- Mobile banking app :
- Email link :
- SMS :
- ATM :
Risk-based approach: Banks categorize customers based on factors like identity, financial status, and business activity. This determines how often your KYC needs updating.
Becoming an adult? If you were a minor when you opened your account, re-KYC happens when you turn 18. Your bank will update your photo and ensure your Customer Due Diligence (CDD) documents are current. They may even perform a fresh KYC if needed.
How to Update Your KYC Information with Your Bank
Timely KYC updates are crucial for secure banking. Here's a step-by-step guide to conducting your re-KYC process
Update Your Personal Information
Upon receiving a notification from your bank, fill out the re-KYC form with your current details. Ensure all information is accurate and reflects any changes since your initial KYC submission.
Submit Required Documents
Self-attest copies of valid documents for both identity and address proof are needed. Choose from the accepted documents listed below
Proof of Identity
- Passport
- PAN Card
- E-Aadhaar or original Aadhaar card
- Valid driving license
- Voter ID card
- NREGA Job Card with an authorized signature
- Gazette officer letter with attested photo (BSBDA accounts only)
Proof of Address
- Passport
- PAN Card
- E-Aadhaar or original Aadhaar card
- Valid driving license
- Voter ID card with address
- NREGA Job Card with an authorized signature
- Gazette officer letter with attested photo (BSBDA accounts only)
- Government/PSU/bank/financial institution employee ID card
Submit and Wait for Processing
Once you've completed the form and collected the documents, submit them to your bank.
approximately it will take around 10 working days for the bank to process and update your KYC documents.
Re kyc for NRIs
- Non-individual customers : Submit the re-KYC form and documents in person at your bank branch.
- NRI customers : Scan and email the completed form and certified documents to your bank branch through your registered email address.
By following these measures, you can easily keep your KYC information updated and ensure a smooth banking experience.
Re kyc in the new era
Gone are the days of filling out forms and visiting bank branches for KYC updates. Thanks to the Reserve Bank of India's (RBI) V-CIP (video-based customer identification procedure) , individual Indian customers aged 18 and above can now complete re-KYC from the comfort of their homes via video call.
Here's what you need to know about video re-KYC
Who is eligible?
Any individual Indian customer above 18 years old with a valid address proof
What do you need ?
Mobile phone or desktop with a camera, microphone, and internet connection Card and Aadhaar Card
How does it work ?
Enter your basic information.
A bank official will conduct a video call to verify your identity and documents.Follow the official's instructions throughout the process.
Benefits of video re-KYC
- Convenient and time-saving : No need to visit a bank branch.
- Secure and reliable : RBI-mandated process with stringent security measures.
- Paperless and eco-friendly : Reduces paperwork and saves resources.Ready to make the switch?
Here's what your bank needs to perform video re-KYC for you
video service platform: This platform should:Analyze the quality of your existing KYC documents.Extract document details automatically.Generate secure capture links for eligible customers.By embracing video re-KYC, you can offer your customers a faster, easier, and more secure way to update their KYC information. It's a win-win for both you and your customers!
5 Key Insights for Banks & NBFCs on Simplifying Re-KYC
Maintaining accurate and current customer information is crucial for banks and NBFCs. The Re-KYC process plays a vital role in ensuring regulatory compliance and managing credit risk. Here are 5 key points for financial institutions to consider
- Prioritize Document Validity : Verify all available KYC documents against current Customer Due Diligence (CDD) standards.
If any documents expire during Re-KYC, complete full customer onboarding again.Prioritize PAN card verification during Re-KYC, as it's a key identifier for financial transactions. - Acknowledge Customer Submissions : Send confirmation to customers after they submit their Re-KYC self-declaration forms.
Clearly state the date documents and forms were received for periodic updates. - Enhance Customer Convenience : Offer Re-KYC at all bank and NBFC branches for wider accessibility.
Consider offering video-based Re-KYC options for remote convenience and faster processing. - Transparency in Internal Policy : Maintain a transparent internal KYC policy outlining Re-KYC procedures.Specify any additional periodic update measures beyond RBI requirements.
- Embrace Video-Based Re-KYC : Leverage video chat functionalities for remote identity and document verification.Utilize chatbox document sharing and location tagging for enhanced security.Consider video-based Re-KYC as a cost-effective and efficient alternative to in-person updates.
Why Video-Based Re-KYC is a Valuable Tool
- Reduced Operational Costs : Eliminates the need for physical branch visits, saving time and resources
- Improved Customer Experience : Offers a convenient and flexible option for customers to update their KYC information remotely
- Stronger Security Measures : Video chat and document-sharing features enable high-quality verification and minimize fraud risks.
- Enhanced Regulatory Compliance : Ensures adherence to RBI guidelines for periodic KYC updates
By adopting comprehensive Re-KYC best practices and exploring innovative solutions like video-based verification, banks, and NBFCs can simplify customer KYC processes, improve operational efficiency, and foster stronger relationships with their clientele.
ReKYC, while seemingly like an additional step, is an essential process that safeguards both you and your financial institution. By keeping your KYC information updated, you contribute to a more secure financial ecosystem, preventing fraud and money laundering. Remember, your financial wellbeing is paramount, and regular ReKYC helps ensure it remains protected.
Taking an active role in your financial health goes beyond just managing your accounts. Staying informed about regulations like ReKYC empowers you to make informed decisions and safeguard your financial interests.
For institutions, implementing efficient ReKYC procedures is not just a regulatory requirement, but an investment in building trust and transparency with your customers. By offering convenient and secure ReKYC options, you can foster stronger relationships and create a more positive customer experience.
Remember, ReKYC is not a one-time event. It's an ongoing process that requires vigilance from both individuals and institutions. By working together, we can create a more secure and stable financial environment for everyone.