Extreme Pressure on Banks! re-KYC of 14.2 Lakh PMJDY accounts done, Total 55.9 crore Accounts

Banks have completed re-KYC process of over 14.2 Lakh PMJDY accounts. A special three-month campaign was started on July 1, 2025 and banks across India are visiting Gram Panchayats (village-level local bodies) to help people update their Know Your Customer (KYC) details. This drive focuses on re-verifying KYC information for existing Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, as well as for other regular bank accounts.

PMJDY scheme was launched in August 2014. People can open basic savings account in bank via this scheme. So far, over 55.9 crore Jan Dhan accounts have been opened under this scheme. Now 10 years of this scheme have completed and as per RBI guidelines, re-KYC needs to be done. Thus, a campaign has been started to complete re-KYC of these accounts.

As per RBI guidelines, periodic updation shall be carried out at least once in every two years for high-risk customers, once in every eight years for medium risk customers and once in every ten years for low-risk customers from the date of opening of the account / last KYC updation.

PM Modi praised Banks for their extraordinary support in this campaign. He praised Banks for doing re-KYC and opening such a large number of PMJDY accounts.

More than 14.2 lakh bank accounts have already completed the re-KYC process. At the same time, banks have opened over 6 lakh new PMJDY accounts. Banks have enrolled 7 lakh people under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and 12 lakh people under the Pradhan Mantri Suraksha Bima Yojana (PMSBY). Banks have also enrolled 3 lakh people under the Atal Pension Yojana (APY).

PMJDY	6 Lakh
PMJJBY	7 Lakh
PMSBY	12 Lakh
APY	3 Lakh

To make this campaign possible, more than 1 lakh camps have been held so far in villages. These camps are also being used to spread awareness about unclaimed deposits in banks and resolve customer complaints and grievances. This campaign will continue till September 30, 2025.

The campaign is being closely monitored by the Department of Financial Services (DFS) and the Reserve Bank of India (RBI). Banks have also been allowed to use Business Correspondents (BCs) for this campaign. These BCs are helping customers in the KYC update process during the camps, along with the bank officials.

This is a massive campaign, and it is hoped that banks will be able to complete it successfully within the scheduled timeline. However, this ambitious drive has also brought to light a long-standing issue faced by the banking sector — staff shortage.

With over 55.9 crore Jan Dhan accounts requiring re-KYC, the scale of the task is enormous. While over 14 lakh accounts have already been updated in the first month, the larger challenge lies ahead. The big question is: how will the existing limited bank staff manage such a huge workload?

Bank employees are already handling regular duties such as customer service, cash transactions, loan processing, and compliance work. On top of that, this re-KYC exercise adds significant additional pressure. Camps are being organized at Gram Panchayat level, and employees are expected to travel, coordinate with local authorities, and manage customer rush — often without any extra manpower or support.

This situation has once again highlighted the need for adequate staffing in public sector banks. If not addressed, the excessive burden may affect both employee well-being and the quality of customer service. The campaign’s success will depend not just on planning, but also on the support and resources provided to frontline banking staff.