RBI Draft: KYC Updates to Revive Inoperative Accounts
Why in the news
The Reserve Bank of India issued a draft proposal asking banks to make it easy for customers to update KYC so dormant accounts and unclaimed deposits can be brought back into use.
Key facts
- Applies to all banks, for customers who want to activate inoperative accounts or claim unclaimed deposits.
- KYC updating must be possible at every branch, including non-home branches.
- Customers can also request updates via the Video Customer Identification Process (VCIP), subject to the bank offering it.
- Banks may use authorised business correspondents to assist.
Significance
- Simplifies reactivation of dormant accounts.
- Improves customer convenience using both digital and branch channels.
Exam angle
- Full form: VCIP is Video Customer Identification Process.
- Status: a draft circular by RBI, not yet final.
- Helpers allowed: authorised business correspondents.