PM Jan Dhan Yojana: Govt mandates KYC update at 10-yr mark – here’s how

PMJDY (Pradhan Mantri Jan Dhan Yojana) has mandated updated Know Your Customer (KYC) verification to keep these accounts secure and compliant as it completes 10 years, according to the Ministry of Finance. PMJDY was launched in 2014 to drive financial inclusion, enabling millions to access banking services through easy and simplified account openings. Around 10.5 crore PMJDY accounts were opened rapidly between August 2014 and December 2014. Now, a decade later, these accounts are due for their periodic update for KYC or re-KYC.

According to the government, Department of Financial Services (DFS) secretary M. Nagaraju led a meeting with all stakeholders involved in carrying out the new re-KYC process for PMJDY account holders. Nagaraju recommended utilising every available method for re-KYC, including fingerprints, facial recognition, and declarations for cases where KYC documents remain unchanged. He emphasised using all channels, such as ATMs, mobile banking, internet banking, and other digital options.

To verify customer identity and prevent fraudulent activities, KYC (Know Your Customer) is mandatorily required. This updated KYC allows banks to confirm current account details, ensuring records are accurate and accounts remain secure.

Valid identification and address proof are needed for the KYC update. Commonly accepted documents include: 

- Proof of identity: Aadhaar card, voter ID, PAN card, passport, or driving license.

- Proof of address: Aadhaar card, recent utility bill (within the last 3 months), bank statement, voter ID, or passport.

- Additional information: Updated contact details (phone or email) if applicable.

Benefits under PMJDY

- A basic savings bank account is opened for individuals without access to banking services.

- PMJDY accounts do not require a minimum balance to be maintained.

- Deposits in PMJDY accounts earn interest.

- PMJDY account holders are issued a Rupay Debit card.

PMJDY accounts qualify for benefits under schemes such as Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and the Micro Units Development & Refinance Agency Bank (MUDRA) scheme.

Here’s the process for updating KYC details with four leading banks SBI, PNB, Canara Bank, ICICI Bank:

SBI: 

- Branch visit: Go to your nearest SBI branch with the required KYC documents.

- Form submission: Complete the KYC update form, attaching necessary documents.

- Verification: Submit the form; the bank representative will verify your documents, and you may need a recent passport-sized photo.

- Confirmation: In SBI, after verification, your KYC update will be confirmed, often via SMS or email.

For Net Banking: 

- Login to SBI netbanking

- Click on My Accounts & Profile tab

- Select update KYC

- Enter your profile password and click ‘Submit’

- Select your account from the menu and click ‘Submit’

- Fill the information required, upload relevant documents and click ‘Submit’

- Enter the OTP sent to your registered mobile number and voila you’re done.

If there is a change in address, the Annexure C-Self Declaration form must be filled out for KYC updation, along with the required documents.

PNB: 

- Banks can utilise ATMs, mobile banking, internet banking, and other digital platforms to conduct re-KYC.

- PNB provides an OTP-based eKYC service.

- PNB offers an instant video KYC option 

Canara Bank

- Login user credentials

- Click on other services and click on re-KYC

- Upload required documents

Canara Bank may have dedicated KYC update windows to reduce wait times. 

Yes Bank

- Login YES service portal 

- A re-KYC pop up will appear or select re-KYC service request

- Choose correct option

- Complete through Aadhaar e-KYC authentication and ‘Submit’

Tips for a smooth KYC update: 

- To avoid delays, bring originals for verification along with photocopies for submission, and check with your bank beforehand regarding the specific documents required.

- Make sure your mobile number and email are updated to avoid missing important notifications. 

Failure in updating KYC

Failure to update KYC could result in account restrictions, including transaction limits or temporary freezing. Regular KYC updates are essential to keep accounts active and functional. Updating KYC for PMJDY accounts is simple but crucial to maintaining security and account benefits. Each of these banks offers straightforward steps for compliance, making the process easy and worthwhile.