Context:
In a customer-centric move, the Reserve Bank of India (RBI) has issued fresh guidelines aimed at simplifying the reactivation of dormant bank accounts and facilitating access to unclaimed deposits, particularly benefiting senior citizens, non-resident Indians (NRIs), and heirs of deceased account holders.
Key Highlights of the New Guidelines
- KYC Update Flexibility: Customers can now update their Know Your Customer (KYC) information at any branch of their bank, not just the home branch.
- Video KYC (V-CIP): Banks are mandated to enable video-based customer identification for reactivating dormant accounts. This allows identity verification via secure video calls, offering greater convenience and accessibility.
- Use of Business Correspondents: Banks may deploy authorized Business Correspondents (BCs) to assist in the KYC update process—an important measure for rural and remote areas with limited branch access.
