Archive · 2 Jun 2025
RBI Proposes Easier KYC Rules for Dormant Bank Accounts
Imagine your bank account hasn't been used in a long time.
The government wants to make it easier for you to start using it again.
The RBI, which is like India's bank boss, has new rules.
Banks can now let you update your information at any branch, not just the one where you opened the account.
They can also use video calls to confirm who you are, if you want.
Plus, bank helpers can come to your area to help with the paperwork.
This makes it simpler to get your account back, especially if you live far away.
RBI proposed changes to simplify KYC for reactivating dormant bank accounts.
Banks can use Business Correspondents (BCs) to update KYC.
Banks can use Video-based Customer Identification Process (V-CIP) for KYC.
KYC updates can be done at any bank branch.
The changes aim to address issues faced by customers in reactivating accounts.
- Who
- The Reserve Bank of India (RBI)
- What
- RBI issued a draft amendment to simplify KYC for dormant bank accounts.
- When
- The draft amendment was issued recently, referencing an earlier circular from January 1, 2024.
- Where
- India
- Why
- To simplify the reactivation of dormant bank accounts and the claim process for unclaimed deposits.
- Policy Change
- Draft amendment to simplify KYC for dormant bank accounts
- Key Features
- Use of BCs and V-CIP for KYC updates
- Affected Accounts
- Inoperative accounts (no transactions for 10+ years)
- Primary Goal
- To ease reactivation of dormant accounts.
- Related Fund
- Depositor Education and Awareness (DEA) Fund