KYC Update: One-Time KYC Update to Sync All Accounts, New System Brings Major Relief to Customers

In a major relief for banking and financial services customers, a new KYC (Know Your Customer) framework is set to end the long-standing hassle of updating details separately across multiple institutions. Under the newly introduced system, updating KYC once will automatically reflect across all linked accounts, including banks, mutual funds, insurance policies, and brokerage platforms. This move is expected to simplify financial transactions and significantly reduce disruptions caused by outdated customer information.

Why KYC Updates Were a Major Pain Point

For years, customers have faced issues such as OTPs not arriving after changing a mobile number, mutual fund redemptions getting stuck, or insurance policies being marked as “KYC pending.” The root cause has been India’s fragmented KYC infrastructure. Banks, mutual fund houses, insurance companies, and brokers maintained their own databases, often disconnected from one another.

As a result, even a small change—such as updating a mobile number or address—required customers to repeat the same process across multiple platforms. If updates were not done in the correct order, financial transactions could remain blocked for weeks.

The new KYC arrangement aims to fix this long-standing problem.

First Step: Update Your Primary Bank Account

Experts advise starting the KYC update process with your primary bank account, as it is usually linked to Aadhaar, PAN, UPI, investments, and insurance premium payments. If your registered mobile number or address is outdated here, almost every other financial service gets affected.

Customers can update their details by visiting the bank branch or through net banking. Once Aadhaar-based verification is completed, it is important to wait until OTPs start arriving on the new mobile number. This step acts as the foundation for all further updates.

Second Step: Correct Aadhaar and PAN Records

If there has been any change in name, address, or mobile number, Aadhaar records should be updated immediately. Many institutions rely on eKYC and CKYC-based verification, and outdated Aadhaar details can lead to rejection of new data.

Similarly, PAN details must match Aadhaar records, especially name and date of birth. Any mismatch can delay or block KYC updates. After making changes, customers should allow a few days for the updated information to sync across systems.

Third Step: Clean Up the CKYC Registry

One of the most commonly overlooked steps is updating the Central KYC (CKYC) Registry. CKYC acts as a master database for mutual funds, brokers, NBFCs, and several financial platforms. If CKYC data is outdated, platforms continue pulling old information, even after individual updates.

To fix this, customers should submit a KYC modification request through any bank, mutual fund house, or insurance provider. Once CKYC is updated, changes usually auto-refresh across multiple platforms.

Fourth Step: Update Investment and Insurance Accounts

After CKYC records are corrected, customers should move on to updating demat, trading, and mutual fund accounts. Insurance policies should ideally be updated last, as insurers often take longer to process changes.

If the correct sequence is followed, most updates can be completed smoothly within one to two weeks. As per RBI guidelines, low-risk customers are getting certain relaxations until June 2026, but timely updates remain crucial to avoid future disruptions.

What Is the New One-Time KYC System?

• Earlier, customers had to update KYC separately with every bank, insurer, and investment platform.

• Under the new One-Time KYC Update System, information updated once will automatically apply across all linked accounts.

• This eliminates the need for repeated document submissions and lengthy verification processes.

Key Benefits for Customers

Time and Effort Savings:
Customers no longer need to visit multiple institutions or upload the same documents repeatedly.

Improved Transparency and Security:
Having uniform information across all accounts reduces the risk of fraud, errors, and transaction failures.

Greater Convenience:
Senior citizens and people in rural areas, who often face difficulties visiting branches frequently, will benefit the most from this streamlined process.

A Big Step Toward Customer-Friendly Banking

The new KYC framework marks a significant shift toward a more integrated and customer-centric financial system. By ensuring that a single update flows seamlessly across institutions, regulators aim to improve efficiency, reduce compliance-related stress, and enhance trust in digital financial services.

For customers, the key takeaway is simple: update KYC in the right order and do it on time. With the new system in place, one correct update can now keep all your financial accounts running smoothly—without repeated paperwork or delays.