The Reserve Bank of India issued an amendment to its revised instructions on inoperative accounts and unclaimed deposits, widening the channels through which customers can update know your customer (KYC) details to reactivate such accounts. All commercial banks (including regional rural banks) and co-operative banks must provide KYC updation for activation at all branches, including non-home branches, with the changes effective immediately. Under the substituted paragraph 6.1, banks should endeavour to offer KYC updation through the Video-Customer Identification Process (V-CIP) and must follow the V-CIP requirements in the Master Direction – Know Your Customer (KYC) Direction, 2016 (as updated). Banks may also use authorised business correspondents to activate inoperative accounts, as set out in paragraph 38(a)(iia) of the KYC Master Direction. The amendment builds on the existing framework under which balances in deposit accounts not operated for ten years or more, and other amounts unclaimed for ten years or more, are transferred to the Depositor Education and Awareness Fund maintained by the Reserve Bank of India.
Reserve Bank of India 2025-06-12
Reserve Bank of India amends inoperative accounts rules to allow KYC updates via business correspondents and V-CIP
The Reserve Bank of India amended its instructions on inoperative accounts and unclaimed deposits, expanding KYC update channels to reactivate such accounts. All commercial and co-operative banks must now offer KYC updates at all branches, including non-home branches, and may use Video-Customer Identification Process (V-CIP) and authorised business correspondents. These changes are effective immediately.