RBI New KYC Rules: It is easy to activate a closed bank account, it will not be necessary to go to the bank

RBI issued a notification on 12 June 2025 stating that now customers can go to any branch and update KYC, there is no requirement to go to the home branch only.

RBI New KYC Rules: It is going to be very easy to reactivate bank accounts that have been closed or inactive for many years. Keeping in mind the convenience of the customers, the Reserve Bank of India (RBI) has issued new guidelines for reactivating inactive or inoperative bank accounts. After these new rules, now customers will not need to go to the home branch just to activate their old account. Along with this, the process of updating the identity proof (KYC) has also become much easier and more digital than before.

What is an inactive account?

If there is no transaction in a bank account for 10 years, then the bank declares it inoperative. If the customer does not claim the amount deposited in such accounts, then it is considered as an 'unclaimed deposit', which the banks transfer to the Depositor Education and Awareness (DEA) Fund of RBI.

What are the new rules of KYC?

RBI issued a notification on 12 June 2025 stating that now customers can go to any branch and update KYC, there is no requirement to go only to the home branch. Banks will provide video-based customer identification process (V-CIP) facility to the customers. That is, customers can update KYC through video call from their mobile or computer. Business Correspondents (BCs) can now go to rural areas and get KYC updated, which will benefit the people in remote areas.

Better options for updating KYC

By visiting any branch and showing identity card and address proof

Through video KYC from home

Through the bank's BC agent in your village or area

Who will benefit?

Senior Citizens

NRIs

Customers from rural and remote areas

People whose account has been closed and it is difficult to reach the home branch

Why is it necessary to re-activate dormant accounts?

There is a deposit amount of crores of rupees in India which no one claims. This money remains idle in banks. This step of RBI will not only provide relief to the customers but also opens the way for banks to bring these funds into active use.