KYC Update: If you have changed your mobile number or updated your address and are not receiving OTPs, your mutual fund redemption is stuck, or your insurance policy shows “KYC Pending,” there’s no need to worry. India’s KYC system is connected to several different databases, which are not fully synced with each other. Banks, mutual funds, insurance companies, and brokers maintain their own information. Therefore, updating in the correct sequence is crucial. Incorrect updates can cause transactions to be delayed for weeks.
Steps to Update Bank Account
First, update your main bank account. This account is linked to your Aadhaar, PAN, UPI, investments, and insurance. Update your new mobile number and address through the bank branch or net banking. After verification through Aadhaar, you will start receiving OTPs, and this will become the basis for everything else.
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In the second step, correct your Aadhaar and PAN records. If your name, address, or mobile number has changed, update your Aadhaar immediately. The name and date of birth in your PAN must match your Aadhaar. After the update, wait a few days so that the changes are reflected correctly in all systems.
In the third step, update the CKYC register. The Central KYC register acts like Aadhaar for mutual funds, brokers, and NBFCs. If you have an old CKYC, many platforms will continue to pull the old data. Request a KYC update from any bank, fund house, or insurer. In most cases, the update will refresh automatically.
After this, update your investment accounts such as Demat, trading, and mutual fund platforms. Update your insurance accounts last, as these platforms are slower. By following the correct sequence, everything will be updated within 1-2 weeks. New RBI rules will also provide exemptions for low-risk customers by June 2026, but timely updates are still necessary.
What is the New System?
The new system also has its advantages. Previously, you had to update KYC separately for each bank or investment platform. A one-time KYC system has now been implemented, where updating information once will automatically apply it to all linked accounts. This eliminates the need to submit documents repeatedly and go through lengthy processes.
This saves customers time and effort, increases transparency, and reduces the likelihood of fraud. Senior citizens and people in rural areas, in particular, will find this new facility a great relief.