On Monday, Financial Services Secretary M. Nagaraju issued a directive to banks to begin updating Know Your Customer (KYC) information for Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts that are due for renewal. The PMJDY scheme, launched in 2014, aimed to provide affordable financial services to underserved populations. Approximately 10.5 crore (105 million) accounts were opened under this scheme in a mission-driven effort between August and December 2014. With nearly a decade having passed, these accounts now require periodic KYC updates to ensure compliance and maintain account security.
To facilitate this process, Nagaraju led a meeting with key stakeholders and representatives from the banking sector, as announced by the finance ministry. In the meeting, he recommended that banks utilize a range of methods for re-KYC to make the process more accessible and efficient for account holders. This includes using biometric verification, such as fingerprint and facial recognition, and allowing customers to confirm if no changes have occurred in their KYC details. He encouraged banks to provide these services across all available digital platforms, including ATMs, mobile banking, and internet banking, to accommodate customer preferences and promote digital convenience.
Nagaraju also encouraged banks to adopt best practices from other institutions and urged them to bring the same level of commitment that they demonstrated during the initial launch of PMJDY. He emphasized that the re-KYC process should be handled with urgency and a mission-focused approach to avoid any disruptions or inconvenience for customers. Additionally, he instructed banks to assign extra staff wherever necessary to complete the re-KYC process promptly and effectively.
This initiative reflects the government’s continued efforts to keep financial services accessible and secure for millions of citizens, ensuring that the Jan Dhan accounts remain up-to-date and compliant with regulatory standards.
