KYC — Know Your Customer — is one of the most basic but often least understood parts of banking. In this episode of RBI Talks – From Paisa to Policy, host Anant Minori speaks with RBI banking policy officer Aditya Sud about what KYC really means, why banks require it, and how customers can navigate it with ease.
What Is KYC, Really?
Think about what happens when you meet someone new — a neighbour or a colleague. You instinctively exchange basic information: your name, your job, where you're from. That's the first step in building a relationship by establishing identity.
KYC is exactly that, but for your relationship with a financial institution. It's the process by which a bank, mutual fund, or insurer establishes who you are, where you live, and what you do, before they begin dealing with you. Think of it as your official handshake with a financial institution.
Why Does a Bank Need to Know So Much About Me?
A shopkeeper sells you something and you both go your separate ways — no questions asked. But a bank's relationship with you is different: banks offer a wide range of financial services and deal with your money, so trust matters enormously. You need to trust the bank with your funds, and the bank needs to be sure you are who you say you are. KYC functions as a trusted bridge between customer and bank.
This isn't arbitrary — banks conduct KYC following RBI guidelines, which are aligned with the Prevention of Money Laundering Act. NBFCs (Non-Banking Financial Companies) are required to follow the same KYC guidelines.
The Direct Benefit to You
KYC isn't just a regulatory hurdle — it protects you. By establishing your identity, the bank can prevent impersonation: someone fraudulently opening an account or carrying out a transaction in your name, which could otherwise land you in serious trouble. KYC is, in essence, a safeguard against identity theft.
The Six Accepted Documents
Only six government-issued documents are accepted for KYC — known as Officially Valid Documents (OVDs):
- Aadhaar
- Voter ID card
- Driving licence
- Passport
- NREGA job card
- A letter issued by the National Population Register
All of these carry your name, address, and photograph. You don't need to provide all six — just one, and there's no preference among them; it's entirely up to your convenience.
What Else Is Required Besides an OVD?
In addition to one OVD, individuals also need to provide their PAN card. If you don't have one, the Income Tax Department has a prescribed alternative — Form 60 — which can be submitted instead.
Is Aadhaar Mandatory?
No. Aadhaar is simply one of the six OVDs you can choose to provide. The confusion often arises around government benefits or subsidies — in those specific cases, banks may ask for Aadhaar to prevent duplicate beneficiaries, but that's a separate requirement, not a general KYC mandate.
When Is KYC Mandatory?
There are three scenarios where KYC is mandatory:
- When opening a new bank account
- When carrying out a transaction or series of transactions worth ₹50,000 or more without holding a bank account
- When conducting any cross-border transaction
Do I Have to Visit a Branch?
Not necessarily. There are multiple ways to complete KYC:
Face-to-face modes:
- Visiting the branch in person
- Completing the process over a video call with a branch official
Non-face-to-face modes:
- Submitting documents via DigiLocker or digitally signed e-copies
- Aadhaar OTP-based eKYC
- Providing your KYC Identifier
With non-face-to-face modes, your account becomes operational, but there may be some restrictions on credits or withdrawals.
Do I Have to Repeat KYC With Every New Bank?
No — and this is one of the more useful things many customers don't know about. When a bank completes your KYC, the records are stored in a centralized system called the Central KYC Records Registry (CKYCR). Each customer is assigned a unique 14-digit identifier known as the KYC Identifier.
Any other bank that needs to verify your KYC can access your documents from this centralized registry — all you need to provide is a copy of your CKYC card containing your KYC Identifier.
How to Get Your CKYC Card
You can download your CKYC card by either:
- Visiting www.ckycindia.in, or
- Giving a missed call from your registered mobile number to 7799022129
Updating Your Information
CKYC works on a "do it once, use it anywhere" principle. Once you update your details with one bank through the CKYC system, the information should automatically flow to all your other banks.
Changing Your Address
If you've moved cities and your OVD still shows your old address, the option is straightforward: submit your existing OVD along with a supporting document showing your current address. Acceptable supporting documents include a water bill, electricity bill, gas bill, or property tax receipt. You must submit the updated OVD with your new address to the bank within the next three months.
Changing Your Name
The process is similar: submit your existing OVD along with a supporting document — in this case, a marriage certificate or an official gazette notification confirming the name change.
What Is Re-KYC (RKYC)?
KYC isn't a one-time event. Banks periodically conduct what's called RKYC — think of it as a periodic health check for your bank account, ensuring your documents haven't expired and your information is still valid and current.
RKYC is mandatory, just like initial KYC. Banks are required to notify customers three times before their RKYC is due, and three more times after it becomes due — with at least one of those notifications sent by letter. If a customer still fails to complete RKYC, the bank may take action, including closing the account.
Do I Need to Do RKYC Even If Nothing Has Changed?
Yes — "no change" is itself information the bank needs. But the process has been simplified: you can submit a self-declaration through internet banking, mobile banking, ATMs, your registered mobile number or email, or even by writing a letter to the bank.
For a change in address, you can include the update within the same self-declaration, and the bank verifies it as per RBI guidelines. For a change in name, however, you'll need to complete KYC again, either by visiting the branch or via video call with a branch official.
A Word of Caution: Protect Yourself From Fraud
Always share your KYC or RKYC information only with your bank or its authorized business correspondents. Fraudsters have been known to impersonate banks, asking customers to share OTPs, PINs, or account information — sometimes even urging them to install certain apps — by creating a false sense of urgency, claiming your account will be blocked or funds frozen.
KYC and RKYC should be done strictly through your bank's official website or app — never through any other channel.
Inoperative Accounts
If you haven't carried out any credit, withdrawal, or other banking transaction for two years or more, your account may be classified as inoperative — essentially the bank's way of checking in to see if you're still using it. To reactivate it, you simply need to complete your KYC again — by visiting the branch, going through an authorized business correspondent, or via video call with a branch official — and your account becomes active again.
The Bottom Line
KYC exists to protect both you and your bank by establishing trust and preventing fraud. With systems like CKYC, the process has become significantly easier — designed to be done once and reused everywhere, with simple self-declaration options for periodic renewal. Staying informed about how and where to share your KYC details is the best way to keep your accounts, and your money, safe.
Best regards,
Written By Samyak Naik
