How Often Do You Need to Update KYC? RBI Clarifies

The Reserve Bank of India (RBI) has issued fresh guidelines around the periodic updating of Know Your Customer (KYC) details, aimed at streamlining compliance without disrupting customer transactions.

The latest directive, issued on June 12, 2025, introduces some flexibility for low-risk customers while continuing to uphold a risk-based framework for KYC management.

Risk-Based KYC Timelines

KYC compliance remains essential for banking operations, but how often a customer needs to update their details now depends on their assigned risk profile:

• High-risk customers must refresh their KYC data every 2 years.
• Medium-risk customers need to update it every 8 years.
• Low-risk customers are required to do so once in 10 years.

These timelines are counted from either the date of account opening or the last KYC update, whichever is later.

Key Change for Low-Risk Customers

In a major relief for low-risk customers, the RBI has clarified that their accounts should continue to function normally—even if the KYC update is overdue.

Banks have now been instructed to ensure that such KYC updates are completed within one year from the due date or by June 30, 2026, whichever comes later. Meanwhile, these accounts will be subject to regular monitoring to spot any red flags.

Doorstep KYC: Business Correspondents Can Help

Recognising the challenges in physically visiting bank branches, the RBI has allowed customers to use authorised business correspondents (BCs) for KYC updates. If a customer’s details remain unchanged or if there's only a change in address, a simple self-declaration can suffice.

 This declaration, along with necessary documents, can be submitted electronically through BCs after biometric e-KYC authentication.

In case the digital option is not available, customers can temporarily submit the documents in physical form until the system is fully enabled.

Notification Guidelines for Banks

To avoid disruption or customer dissatisfaction, RBI mandates that banks proactively remind customers about KYC updates. Banks must:

• Send at least three reminders before the due date—using different communication modes, including at least one physical letter.
• If the customer still doesn't respond, banks are required to issue three additional reminders after the due date, including a physical communication.

Once KYC is successfully updated, banks must notify the customer accordingly.

Read More: Flipkart Gets RBI Nod for NBFC Licence, Set to Launch Direct Lending.

Conclusion

RBI’s revised KYC norms reflect a more customer-friendly approach, especially for individuals in the low-risk bracket. By allowing extended timelines, continued account access, and enabling KYC through business correspondents, the central bank aims to strike a balance between regulatory compliance and customer convenience.

However, staying alert to KYC deadlines and responding to bank notices remains crucial for seamless banking access.

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