If you have a bank account and haven’t updated your KYC (Know Your Customer) details, this is important news.
The Reserve Bank of India (RBI) has warned that delays and negligence in KYC updates are making banks more vulnerable to fraud.
This problem is especially serious in villages and small towns, where many people ignore or postpone updating their KYC, putting themselves at risk.
RBI Urges Banks to Update KYC Quickly
The RBI has asked banks to complete KYC updates as soon as possible to prevent fraud.
Banks are advised to organize KYC update camps and run awareness campaigns, focusing on smaller branches.
Earlier, from July to October 2025, the RBI conducted a nationwide re-KYC drive at the Gram Panchayat level to encourage updates.
Banks have also been warned not to reject KYC updates or new account applications randomly.
Any rejection must have a valid reason and proper documentation. Unnecessary rejections can cause inconvenience and distress to customers.
Tackling Digital Fraud and Mis-Selling
Frauds are becoming more digital and sophisticated, so RBI is taking action to strengthen security.
It has launched AI tools to prevent digital fraud and has instructed banks to clean customer databases using the Telecom Department’s mobile number revocation list.
This will help prevent scams through calls and messages.
The RBI also identified mis-selling as a major concern.
New rules on advertising, marketing, and sales will soon be issued to protect customers from misleading offers.
Banks are encouraged to strengthen internal controls to ensure better fraud prevention and safer banking.