Compulsory Re-KYC for Most Jan Dhan Account Holders - Here's a Guide on Updating Your Jan Dhan Account Details
Standardization of Claims Settlement Procedure for Deceased Customers
The Reserve Bank of India (RBI) has announced plans to standardize the claims settlement procedure for bank accounts and lockers of deceased customers, with the aim of making the process more convenient and simpler for the family members of the deceased [1].
This move comes as the RBI looks to facilitate expeditious settlement of claims or return of articles or release of contents of safe deposit lockers upon death of a customer, with the intention of minimizing hardship caused to family members [2].
According to the RBI, nomination facilities are already available in respect of deposit accounts, articles kept in safe custody, or safe deposit lockers, as per the Banking Regulation Act, 1949 [3]. However, the current procedures vary across banks, with the RBI's extant instructions requiring banks to adopt a simplified procedure to facilitate expeditious and hassle-free settlement of claims made by survivors/ nominees/ legal heirs [4].
A draft circular regarding the standardization of claims settlement procedures will be issued shortly for public consultation [1]. The RBI did not provide any information about the timeline for the implementation of the expanded functionality of the RBI Retail-Direct platform, but it is planning to allow retail investors to invest in treasury bills through systematic investment plans [5].
Meanwhile, as the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme completes 10 years, a large number of accounts have fallen due for re-KYC. The RBI governor emphasized the interest and welfare of Indian citizens, particularly those at the bottom of the pyramid, as the bank's primary focus [6].
To help account holders with the re-KYC process, banks are organizing camps from 1st July to 30th September to provide services at customer doorsteps, including opening new bank accounts, re-KYC, micro-insurance, and pension schemes [7]. The re-KYC process can also be done online by logging into the bank’s net banking portal, going to the profile or KYC update section, entering the required updated details and uploading supporting documents, and completing verification through OTP sent to the registered mobile number [2].
| Aspect | Details | |----------------------------|-------------------------------------------------------| | Due for re-KYC | After 10 years from account opening | | Current re-KYC period | July 1 to September 30, 2025 | | Re-KYC process modes | Camps at Panchayat level / Online via net banking | | Purpose | Updating personal and address details for compliance and continued benefits | | Number of accounts due | About 10 crore Jan Dhan accounts in 2025 |
This re-KYC is part of the RBI’s effort to provide better services and protect account holders from fraud, ensuring updated customer information [1][3][5]. The RBI's decision to streamline the procedures and standardize the documentation is aimed at making the settlement process more uniform and efficient across banks.
- The RBI's decision to standardize the claims settlement procedure for deceased customers aligns with the broader goal of enhancing the efficiency and uniformity in the financing sector, including banking, investment, and personal-finance services.
- As the Reserve Bank of India (RBI) is planning to allow retail investors to invest in treasury bills through systematic investment plans, it is essential to ensure that investment opportunities are regulated appropriately to protect consumers.
- The recent re-KYC initiative for Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts underscores the RBI's commitment to personal-finance security and preventing fraud.
- In light of the expanding digital finance (DeFi) market and business, the RBI's regulation must address the growing need for efficient, secure, and user-friendly financial services, ensuring both customer convenience and industry compliance.
