The Reserve Bank of India has amended its KYC norms to simplify customer onboarding using Aadhaar-based e-KYC, video KYC, OTP authentication, and DigiLocker integration. These updates are aimed at enhancing inclusive banking and digital access across India, especially for first-time users and beneficiaries of government welfare programs.
The Reserve Bank of India (RBI), India’s central banking institution responsible for monetary policy and regulation, announced a major update to its Know Your Customer (KYC) guidelines on June 6, 2025, aimed at simplifying and expanding access to banking services across the country.
The revised KYC norms now allow customer onboarding through Aadhaar-based e-KYC, video KYC, OTP-based verification, and DigiLocker authentication. These measures are expected to ease access to financial services, particularly for individuals in rural or remote areas and first-time account holders.
The RBI emphasized that these changes are designed to support India’s vision for inclusive digital banking. Banks and financial institutions are now encouraged to integrate with the Central KYC Registry (CKYCR) and leverage Business Correspondents to help individuals who may lack direct access to digital tools.
The updated framework also simplifies KYC revalidation processes for existing customers. Customers can now update their KYC information through self-declaration and online submission, reducing the need for physical branch visits.
In addition, institutions are being guided to improve KYC compliance by ensuring all digital onboarding channels are secure, fraud-resistant, and aligned with India’s data protection standards.
These updates are seen as a step forward in strengthening India’s digital financial infrastructure while ensuring security, transparency, and accessibility.
