In a significant move, the Department of Financial Services (DFS) has initiated a nationwide re-KYC (Know Your Customer) update for Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders. M. Nagaraju, Secretary of DFS, led a meeting with key stakeholders in New Delhi, highlighting the need for a seamless re-KYC process for around 10.5 crore PMJDY accounts due for their first update since being opened nearly a decade ago.
PMJDY, launched in August 2014, was a financial inclusion scheme that brought millions of previously unbanked citizens into the banking system. In just four months, approximately 10.5 crore accounts were opened. Now, after a decade, these accounts are set for their first periodic KYC update, a step aimed at maintaining accuracy in banking records and ensuring smooth access to banking services for PMJDY beneficiaries.
In the meeting, Nagaraju urged banks to deploy all possible KYC update methods, including fingerprint and facial recognition, as well as digital declarations for customers whose KYC details have remained unchanged. He highlighted that customers should have the flexibility to complete re-KYC through multiple channels, ATMs, mobile banking, internet banking, and other digital platforms.
Nagaraju also highlighted the pivotal role of State Level Bankers’ Committees (SLBCs), Union Territory Level Bankers’ Committees (UTLBCs), and Lead District Managers (LDMs) in mobilizing local authorities such as State and District administrations and Gram Panchayats to encourage community-wide participation in the re-KYC process.
He called on banks to work with the same enthusiasm that marked the launch of PMJDY, stressing the need to make the re-KYC campaign a success in "mission mode" to prevent any inconvenience to account holders.
Nagaraju also recommended that banks allocate additional resources and staff where necessary to ensure a smooth, timely process for re-KYC, reinforcing the government’s commitment to inclusive and efficient banking services.
