RBI New KYC Rules: It is now going to be very easy to reactivate bank accounts that have been closed or inactive for many years. Keeping in mind the convenience of the customers, the Reserve Bank of India (RBI) has issued new guidelines for reactivating inactive or inoperative bank accounts.
After these new rules, now customers will not need to go to the home branch just to activate their old account. Along with this, the process of updating identity proof (KYC) has also become much easier and digital than before.
What is an inactive account?
If there is no transaction in a bank account for 10 years, the bank declares it inoperative. If the customer does not claim the amount deposited in such accounts, it is considered as ‘unclaimed deposit’, which the bank transfers to RBI’s Depositor Education and Awareness (DEA) Fund.
What are the new KYC rules?
RBI issued a notification on 12 June 2025 in which it was told that now customers can update KYC by visiting any branch, there is no compulsion to go only to the home branch. Banks will provide video-based customer identification process (V-CIP) facility to the customers. That is, customers can update KYC through video call from their mobile or computer. Business Correspondents (BCs) can now go to rural areas and get KYC updated, which will benefit the people in remote areas.
Better options to update KYC
- Go to any branch and show your identity card and address proof
- Do video KYC from home
- Through the bank’s BC agent in your village or area
Who will benefit?
- Senior Citizens
- NRI
- Customers in rural and remote areas
- People whose account has been closed and it is difficult to reach the home branch
Why is it necessary to reactivate inactive accounts?
There are crores of rupees of deposits in India which no one claims. This money lies idle in the banks. This step of RBI will not only provide relief to the customers but also opens the way for the banks to put these funds into active use.
