India RBI KYC enforcement and scams

In late July 2026 the Reserve Bank of India announced a nationwide tightening of Know Your Customer (KYC) requirements. Banks must now verify high‑risk accounts (transactions over ₹50,000) every two years, medium‑risk every eight years and low‑risk every five years, with non‑compliance allowing account freezes. The RBI also promoted the Central KYC (CKYC) system, a 14‑digit identifier that stores verified customer data for use by banks, NBFCs, mutual funds and insurers, aiming to reduce paperwork and speed up services.

A few days later the RBI issued public warnings about a surge in fraud exploiting the new KYC framework. Scammers circulated fake SMS and WhatsApp messages claiming that accounts would be closed unless users updated their KYC details via malicious links, collecting OTPs, PINs and passwords. State police in Kerala added alerts about counterfeit loan‑application apps that harvest Aadhaar, PAN and banking information, install malware and demand fees. The RBI urged the public to verify any KYC request only through official bank channels, to download loan apps solely from recognized app stores, and to report suspicious activity to the national cyber‑crime helpline.