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The Hindu
3 days ago
- Business
- The Hindu
Prepare action plans in a week to increase enrolment for PMJJBY and PMSBY, MP tells banks
With poor enrolment in the two social security schemes of the Union government, Dakshina Kannada Member of Parliament Captain Brijesh Chowta on Friday asked banks to prepare an action plan each within a week to increase the enrolment. The schemes in question are Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). Speaking at the District Consultative Committee (DCC) and District-Level Review Committee (DLRC) meeting for banking development in the district, Capt. Chowta said that the action plans should be submitted to Lead Bank and the committees headed by the Chief Executive Officer (CEO) of the zilla panchayat. Capt. Chowta said that banks should take an initiative beyond their business interests to enrol people in the government's social security schemes. 'The enrolment should be conducted on a mission mode,' he said, expressing dissatisfaction over some banks making only 20% and 40% progress. Banks should take special interest to ensure that social security schemes of the government reached all people, he said and added: 'Go beyond call of your duty.' 'It just requires taking consent of bank customers for enrolling in the schemes while visiting the branches. Later, banks need to take only a signature of customers for enrolment,' the Member of Parliament said. He asked the bankers: 'Are you facing any problems [in enrolling customers to the schemes] ?' The question, however, did not elicit any response from bankers. K. Anandh, CEO and chairman of the committees, asked bankers to be proactive in implementing government schemes, especially those meant for vulnerable sections of society. 'When not shown interest in achieving progress while implementing government schemes, it meant that you are drifting away from your social responsibility,' the CEO told bankers. Dr. Anandh asked bankers not to harass individual members of self-help groups (SHGs) for sanctioning loans of up to ₹2 lakh under the National Rural Livelihood Mission (NRLM) by pressuring them to produce business plans and quotations. The RBI has exempted individuals from producing those documents for sanctioning loans of up to ₹2 lakh. An NRLM official informed the meeting that complaints have been received from Canara Bank, insisting that the documents be submitted in Sullia and Konaje. The meeting was held to review the performance of banks in the district for the fourth quarter of 2024-25. According to the statistics provided by Lead Bank in the meeting, banks enrolled 39,917 accounts under PMJJBY and 117,237 accounts under PMSBY in the year from April 1, 2024, to March 31, 2025. The banks opened 24,516 accounts under the Atal Pension Yojana (APY) and 44,648 savings bank accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY), which are other social security schemes, in the last financial year.
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Business Standard
12-06-2025
- Business
- Business Standard
RBI allows KYC updation for low-risk customers till 30 June 2026
The Reserve Bank of India (RBI) has directed regulated entities to continue allowing transactions for individual 'low-risk' customers, while ensuring their Know Your Customer (KYC) details are updated by 30 June 2026 or within one year of falling due, whichever is later. The decision comes as the regulator has observed a large pendency in periodic updation of KYC including in the accounts opened for credit of Direct Benefit Transfer under government schemes to facilitate credit of direct DBTs and/or scholarship amount and accounts opened under Pradhan Mantri Jan Dhan Yojana (PMJDY). Earlier this week, during the meeting of the Financial Stability and Development Council, Finance Minister Nirmala Sitharaman exhorted the council to take proactive steps to ensure that citizens should have a seamless experience with respect to KYC processes across the financial sector. She also asked the financial sector regulators to take necessary steps to reduce the unclaimed assets in the financial sector like banks deposits, dividends, shares, post office accounts, insurance and pension funds etc., and ensure expeditious and seamless refund of such assets to rightful owners. RBI, now, has also allowed Business Correspondents to facilitate in the process of KYC updation. Authorised Business Correspondents of the bank are also allowed to be utilised for activation of inoperative accounts. 'Self-declaration from the customer in case of no change in KYC information or change only in the address details may be obtained through an authorised BC of the bank. The bank shall enable its BC systems for recording these self-declarations and supporting documents thereof in electronic form in the bank's systems,' RBI said in a notification. 'Banks have to grow their network of business correspondents. It will help in regular updation and simultaneously it will facilitate smooth KYC updation. Because of KYC being not updated from time to time, there has been a significant delay in DBTs, scholarships etc,' said a banking official with a public sector bank. On due notices on periodic KYC updation, RBI asked the regulated entities to intimate its customers, in advance, to update their KYC. 'Prior to the due date of periodic updation of KYC, the RE shall give at least three advance intimations, including at least one intimation by letter, at appropriate intervals to its customers through available communication options/channels for complying with the requirement of periodic updation of KYC,' RBI said. Subsequent to the due date, the RE shall give at least three reminders, including at least one reminder by letter, at appropriate intervals, to such customers who have still not complied with the requirements, despite advance intimations. The regulated entities are asked to expeditiously implement these guidelines and before January 01, 2026. Further, the banks are advised to organise camps and launch intensive campaigns including special camps, focusing on periodic updation of KYC, especially in rural and semi urban branches and the branches having large pendency in periodic updation of KYC. RBI has also asked banks to make available the facility of updation of KYC for activation of inoperative accounts and unclaimed deposits at all branches including non-home branches. 'Further, a bank shall endeavour to provide the facility of updation of KYC in such accounts and deposits through Video-Customer Identification Process (V-CIP),' it said. 'This is a time to time practice of the RBI to tighten the KYC norms so that customers get benefits of DBTs. Also, there has been a rise in inoperative accounts and banks have to bear the cost of those accounts. In addition, frauds have also increased, so regular updation of KYC is essential to keep a check on frauds,' said a senior banking official at another state-owned bank.
The Hindu
12-06-2025
- Business
- The Hindu
RBI allows BCs to update KYC information
Reserve Bank of India (RBI) eased the Know Your Customer (KYC) norms for convenience of the customer according to a circular released June 12. Banks shall complete the KYC updation of customers who are flagged as 'low risk' whose KYC have not been updated, within a year or June 2026, whichever is later. Moreover, the Central bank also introduced the facility to upload KYC through video. The facility is called Video based Customer Identification Process (V-CIP) for customer onboarding and information updation. RBI also said banks shall enable its banking correspondents to undertake the KYC updation activity. These facilities shall be provided to reactivate inoperative accounts, RBI said in a separate circular. Banks have been advised to reach out to semi-urban and rural areas and set up camps to complete the process. The circular becomes important at a time when a lot of PMJDY accounts were reportedly inoperative due to difficulties in KYC updation and eligible beneficiaries for Direct Benefit Transfer based schemes faced snags in withdrawing money. 'Simplifying KYC while maintaining regulatory safeguards will enable the ecosystem to onboard customers faster, reduce friction, and accelerate the adoption of formal financial services,' said Payments Council of India (PCI) in its release.
Deccan Herald
12-06-2025
- Business
- Deccan Herald
RBI asks banks to give due notices to customers for periodic KYC update
In a circular, the RBI said it has observed a large pendency in periodic updation of KYC, including in the accounts opened for credit of Direct Benefit Transfer (DBT)/ Electronic Benefit Transfer (EBT) under government schemes to facilitate credit of DBTs and/or scholarship amount (DBT/EBT/scholarship beneficiaries) and accounts opened under PMJDY.
Business Standard
12-06-2025
- Business
- Business Standard
RBI eases process for updation of KYC
The Reserve Bank of India (RBI) came up with a list of of amendments to its Know Your Customer (KYC) norms. The Reserve Bank has observed a large pendency in periodic updation of KYC including in the accounts opened for credit of Direct Benefit Transfer (DBT)/ Electronic Benefit Transfer (EBT) under Government schemes to facilitate credit of DBTs and/ or scholarship amount (DBT/ EBT/ scholarship beneficiaries) and accounts opened under PMJDY. In order to further ease the process for the convenience of customers, the instructions regarding updation/ periodic updation of KYC have been amended with the intent, inter alia, to allow BCs to facilitate in the process of KYC updation vide Reserve Bank of India (Know Your Customer (KYC)) (Amendment) Directions, 2025. Similar amendments related to inoperative accounts and unclaimed deposits have been made. The processes of onboarding customer and updation/ periodic updation of KYC have been simplified as follows: Face-to-face mode for onboarding the customer Customer may be onboarded in face-to-face mode through Aadhaar biometric based e-KYC authenticating and, in such case, if customer wants to provide a current address, different from the address as per the identity information available in the UIDAI database (i.e., Central Identities Data Repository), he may give a self-declaration to that effect to the RE (ref. paragraph 16 of the Master Direction on KYC). Further, Digital KYC process is also allowed for customer onboarding. Non-face-to-face (NFTF) modes for onboarding the customer Consent-based onboarding of customer in NFTF mode may be done using Aadhaar OTP based e-KYC authentication which is subject to certain conditions (ref. paragraph 17 of the Master Direction on KYC). Further, such account shall be placed under strict monitoring, and Customer Due Diligence (CDD) procedure shall be completed within a year. Customer onboarding in NFTF mode using digital modes such as KYC Identifier, equivalent e-documents, documents issued through DigiLocker, and non-digital modes such as obtaining copy of OVD certified by additional certifying authorities as allowed for NRIs and PIOs are subject to certain conditions. Customer onboarding using Video based Customer Identification Process (V-CIP) V-CIP is an alternate method of CDD by an authorised official of the RE by undertaking seamless, secure, live, informed and consent based audiovisual interaction with the customer to obtain identification information required for CDD purpose. V-CIP is treated on par with face-to-face onboarding. Simplified process of updation and periodic updation of KYC Self-declarations - REs are allowed to obtain self-declaration regarding "no change in KYC information" or "a change only in address details" from customers using digital and non-digital modes, through customer's email / mobile number registered with the RE, ATMs, digital channels (such as online banking / internet banking, mobile application of RE), letter, BCs, etc. The updation/ periodic updation of KYC records are allowed to be carried out at any branch of the RE with which customer maintains the account. Aadhaar OTP based e-KYC and V-CIP are permitted for the purpose of updation/ periodic updation of KYC. The REs have been directed to update customers' KYC information/ records based on the update notification received from CKYCR.
