Several banking rules are changing, and customers like you and me should know about them. From November 1 this year, new rules will be introduced to increase customers’ financial security. One of these important changes is related to KYC. The RBI has explained how often KYC needs to be updated. KYC means Know Your Customer. In this process, banks or financial institutions verify the identity of their customers.

Why KYC Is Important

The main purpose of KYC is to:

  • Prevent fraud, misuse of money, terrorist funding, or any illegal activity.
  • Confirm the identity and address of the customer.

Why KYC Is Required

Banks must know the true identity of every customer. That’s why the RBI (Reserve Bank of India) has made KYC mandatory. Without completing KYC:

You cannot open a new bank account.

You cannot apply for loans, fixed deposits, mutual funds, or demat accounts.

Old accounts can also be frozen if KYC is not updated.

New KYC Rules by RBI

According to the new RBI rules:

Low-risk accounts: KYC update every 10 years.

Medium-risk accounts: KYC update every 8 years.

High-risk accounts: KYC update every 2 years (for accounts with large transactions).

RBI has also said that banks must update KYC themselves — it cannot be done through any third party.

What Is Required for KYC

KYC verifies two main things:

1. Proof of Identity

Aadhaar Card

PAN Card

Voter ID

Passport

Driving License

2. Proof of Address

Aadhaar Card (if address is printed)

Electricity Bill / Gas Bill (within 3 months)

Passport

Ration Card

Bank Account Statement

Types of KYC

1. Physical KYC

  • Visit the bank branch and fill out the form.
  • Submit photocopies of documents.
  • Take a selfie or photo.

2. e-KYC

  1. Done online through Aadhaar verification.
  2. OTP-based verification.
  3. Fast and secure process.

3. Video KYC

  • Done through a video call.
  • Show your identity card on camera for verification.

Why KYC Update Is Needed

If your address, phone number, or ID changes.

If the RBI or bank asks for re-verification.
Usually, this process (called Re-KYC or Periodic KYC Update) is done every 2 to 10 years, depending on account type.