In a recent meeting held in New Delhi, Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS), emphasized the urgent need for banks to complete the re-KYC process for Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders in a time-bound manner. The meeting brought together key stakeholders to discuss the process of updating Know Your Customer (KYC) details for the vast number of PMJDY accounts, which were first opened in 2014.
The PMJDY, a flagship financial inclusion initiative, saw the opening of over 10.5 crore accounts during its initial phase between August and December 2014. After nearly a decade, these accounts are now due for periodic re-KYC, a regulatory requirement to ensure that account details remain up to date.
Shri Nagaraju called on banks to make use of all available methods for the re-KYC process, with a strong emphasis on leveraging digital tools such as biometric verification, including fingerprints and face recognition. He also highlighted the use of mobile banking, internet banking, and ATMs for the process. For accounts where there has been no change in KYC details, simple declarations could suffice, ensuring a smoother experience for customers.
The Secretary also pointed out the important role of local financial institutions such as the State Level Bankers’ Committees (SLBCs) and District Lead Managers (LDMs) in facilitating the re-KYC process. He urged these bodies to collaborate with state and district administrations, as well as local Gram Panchayats, to mobilize customers and encourage them to complete the re-KYC in a campaign mode.
In his remarks, Shri Nagaraju urged banks to replicate the enthusiasm and commitment they demonstrated during the initial rollout of the PMJDY scheme. He called for a mission-mode approach to ensure that re-KYC is completed efficiently, avoiding any disruption or inconvenience to account holders.
To support this, the DFS Secretary also directed banks to deploy additional staff where needed, ensuring that the task of re-KYC is completed within the prescribed timelines.
The push for timely re-KYC is crucial as it will help maintain the integrity of the financial inclusion efforts under PMJDY and ensure continued access to banking services for millions of account holders across the country.
