RBI Reports Completion of Re-KYC for Over 3.5 Million Accounts

The Reserve Bank of India (RBI) undertook a major initiative on August 6th, 2025 to strengthen financial inclusion and ensure uninterrupted banking services for millions of people, especially in rural areas. Running from July 1 to September 30, 2025, this campaign focuses on updating Know Your Customer (KYC) records for account holders through easy-to-access camps at the village level.

For many people in smaller towns and villages, visiting a branch can be time-consuming and costly. By bringing banking services to the doorstep, the RBI is making it easier for people to keep their accounts active, access new financial products, and link to social security schemes.

What Is the RBI Doing?

The RBI’s re-KYC campaign aims to re-verify and update details of account holders whose KYC documents are outdated or incomplete. These camps are being held at the Gram Panchayat (village council) level, making them accessible to rural households.

The approach is designed to be customer-friendly people can complete re-KYC without travelling long distances, often with the help of local banking correspondents who are familiar faces in the community.

Apart from re-KYC, these camps are promoting other services such as:

• Opening of new bank accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
   
• Enrolment in insurance schemes like PMSBY (Pradhan Mantri Suraksha Bima Yojana) and PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana).
   
• Subscription to the Atal Pension Yojana (APY) for long-term financial security.
   

This means that people visiting for re-KYC can also sign up for valuable benefits in one trip, saving both time and effort.

Re-KYC Campaign’s Progress So Far

The RBI’s drive has already made significant progress in its first phase. According to official updates, over 3.5 million (35 lakh) accounts have been successfully re-KYC’d through these financial inclusion camps.
 

The campaign has covered about one-third of all Gram Panchayats in the country so far, and efforts are accelerating as the September 30 deadline approaches.

Why Re-KYC Campaign Matters for Customers?

Updating KYC might sound like a small administrative step, but it has big consequences for the everyday user. Without a valid KYC, accounts can be restricted, meaning you may not be able to withdraw or deposit money freely.

Here’s why the RBI’s doorstep approach is important:

• Convenience: Camps are held locally, so there’s no need to take time off work or spend money travelling to distant branches.
   
• Continuity: Accounts remain fully operational, avoiding disruptions in receiving wages, pensions, or subsidies.
   
• Opportunity: While doing re-KYC, customers can also access other schemes, improving their financial safety net.

Think of it like renewing your driving licence. If you do it on time and locally, it’s quick and painless. If you ignore it, you might face penalties or inconvenience later.

Support for Banks and Dealers in Re-KYC Campaign

To make this campaign work smoothly, the RBI has instructed banks to take a mission-mode approach. This involves:

• Deploying Business Correspondents (BCs) to rural areas to assist customers directly.
   
• Coordinating with Gram Panchayat officials to spread awareness about camp dates.
   
• Ensuring sufficient manpower so that long queues and delays are avoided.
   

Banks are also encouraged to simplify the process. For example, if a customer’s address hasn’t changed and they’ve been regularly transacting, a simple self-declaration may be enough for re-KYC, rather than re-submitting all documents.

Link to Financial Inclusion Goals

The RBI measures financial inclusion using its Financial Inclusion Index (FI-Index), which tracks access, usage, and quality of banking services.
 

This 24% improvement in just four years reflects better availability of services, more accounts in use, and greater trust in the banking system. The re-KYC campaign directly supports these gains by keeping accounts active and linking more people to formal finance.

It also helps in fraud prevention—up-to-date records make it harder for unauthorised transactions to occur.

Future Plans on Re-KYC Campaign by the RBI

While progress is promising, a large portion of the target, 7 crore accounts, is still pending re-KYC. The RBI has called on banks to intensify outreach in the coming weeks, especially in remote and underserved areas.

If successful, this campaign will not only update account records but also bring millions of rural households closer to mainstream financial products. This aligns with India’s broader push for digital payments, direct benefit transfers, and a more cash-lite economy.

Conclusion

The RBI’s re-KYC campaign is more than an administrative exercise—it’s a vital link in India’s financial inclusion chain. By setting up local camps, simplifying paperwork, and integrating other beneficial schemes, it ensures that people stay connected to the banking system without hassle.

For customers, it’s a reminder to keep their financial records in order; for banks, it’s an opportunity to strengthen relationships with rural clients. With the September 30 deadline approaching, the coming weeks will be crucial in reaching the remaining millions and ensuring that no account holder is left behind.
 

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