Fresh KYC Process Required for PM Jan Dhan Accounts After Ten Years of Operation

Financial Services Secretary M Nagaraju has urged banks to initiate a new KYC process for Jan Dhan accounts that require updating. The Pradhan Mantri Jan Dhan Yojana (PMJDY) was introduced in 2014, resulting in the opening of around 10.5 crore accounts between August and December of that year. These accounts now need periodic updates or re-KYC after a decade.

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Nagaraju led a meeting with stakeholders to discuss the re-KYC process for PMJDY account holders, as stated by the finance ministry. He recommended using various methods such as fingerprints, face recognition, and declarations where KYC documents remain unchanged. These updates can be done through ATMs, mobile banking, internet banking, and other digital channels.

Implementing Best Practices

During the meeting, Nagaraju encouraged banks to adopt best practices from peer institutions. He emphasised the importance of completing the re-KYC process with the same enthusiasm demonstrated during the PMJDY scheme's launch. This approach aims to prevent any inconvenience to customers.

He also instructed banks to allocate additional staff if needed to ensure the re-KYC process is completed promptly. This directive aims to maintain efficiency and minimise disruptions for account holders.

The finance ministry's statement highlighted Nagaraju's call for banks to work diligently on this task. By doing so, they can ensure a smooth transition for account holders requiring updated KYC information.

The focus remains on using all available digital channels to facilitate the re-KYC process efficiently. This approach aligns with modern banking practices and enhances customer convenience.

By implementing these measures, banks can effectively manage the re-KYC process for PMJDY accounts. This effort will help maintain compliance and ensure continued access to financial services for account holders.