New Delhi. Reserve Bank of India has taken steps to give relief to customers in terms of KYC update. Under this, banks and other financial institutions under the purview of RBI have been asked to give suitable notice to their customers in a suitable manner to update KYC from time to time.

RBI circular
The RBI said in a circular that it has seen a large number of pending cases in updating its customer from time to time. This includes accounts opened for receiving funds under Direct Benefit Transfer (DBT)/Electronic Benefit Transfer (EBT) and accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY). This step has been taken to make the process easier for customers’ convenience. Under this, instructions regarding the update of KYC from time to time have been revised. Through this, bank representatives have been allowed to be involved in the process of updating KYC.

Have to inform beforehand
In this context, the central bank issued its customer’s know (amendment) instructions, 2025. According to the new instructions, units (REs) under the purview of RBI will inform their customers to update their KYC in advance. It said that before the due date of updating to KYC at certain intervals, banks and other financial institutions will give at least three advance notifications at the appropriate interval through the communication options/channels available to their customers to comply with the need to update KYC. It will be given at least one information letter.

After the due date, the bank will give at least three reconciliation letters to such customers at appropriate intervals. It will have to be given at least through a letter. This will be for customers who have not yet complied with KYC requirements despite advance information.