Reserve Bank of India tightens KYC rules, threatens account freezes

The Reserve Bank of India (RBI) has introduced stricter Know Your Customer (KYC) requirements for all banks. Customers must complete KYC within defined periods based on transaction frequency: high‑risk accounts (transactions above ₹50,000) every two years, medium‑risk every eight years, and low‑risk every five years. Failure to provide the required identification and address details will allow banks to freeze the accounts, according to RBI directives.

The RBI also promotes the Central KYC (CKYC) system, a 14‑digit identifier that stores verified KYC records in a central registry. Banks, NBFCs, mutual funds and insurance firms can access these records with customer consent, eliminating repeated paperwork and speeding up account opening, loans, insurance and investment services. Customers can retrieve their CKYC number via a missed‑call service, their bank, or the official CKYC portal. The RBI highlighted pending KYC cases in Telangana, where millions of accounts remain incomplete, underscoring the urgency of compliance.