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RBI relaxes KYC rules, empowers banking correspondents

Business

The Reserve Bank of India just made life easier for people with "low-risk" bank accounts. Thanks to the updated KYC (Know Your Customer) rules, you can keep using your account without interruptions until June 30, 2026—as long as your bank reminds you about updates on time. Now, only high-risk users need to update their KYC every two years; medium-risk every eight; and low-risk folks just once a decade.

Banks to use mobile apps, ATMs for KYC updates

RBI wants banks to use mobile apps and ATMs for KYC updates, making things smoother—especially if you're in a rural area or just prefer doing things online. The idea is to cut down on paperwork and let banks focus more on higher-risk cases.

Push for digital identity systems like Aadhaar-based e-KYC

There's also a push for digital identity systems like Aadhaar-based e-KYC, so updating your info should get even easier. Overall, these changes are meant to help regular customers avoid unnecessary banking headaches while keeping things secure.