RBI Eases KYC Updation Norms for RRBs and Co-op Banks
Current · Source: Reserve Bank of India · RBI/2013-14/161 · issued 25 Jul 2013 · ~2 min read
Quick answerRBI has relaxed KYC updation frequency for low and medium risk customers at RRBs and co-op banks. Full KYC now required every 10 years for low risk, 8 for medium, and 2 for high risk. Positive confirmation needed every 2-3 years. Fresh photos for minors on becoming major.
The rule, in the simplest words
For low-risk customers (those unlikely to break rules), you must do a full KYC (check their ID and address papers) every 10 years.
For medium-risk customers, full KYC is needed every 8 years, and for high-risk customers, every 2 years.
Every 3 years for low-risk and every 2 years for medium-risk customers, you must get a 'positive confirmation' (a simple check by email, phone, or visit to see if anything changed).
When a minor customer (child) becomes an adult (18 years old), you must take a fresh photograph for their account.
How it plays out — a real example
A KYC & compliance officer in Indore, Priya, reviews her branch's KYC schedule. She notes that Mrs. Sharma, a low-risk customer who opened her account 9 years ago, is due for full KYC next year. Priya also sets a reminder to call Mr. Patel, a medium-risk customer, in 2 years for a quick positive confirmation, and she updates the system to flag minor accounts when the child turns 18 so a new photo can be taken.
What changed
Previously, full KYC updation was required every 5 years for low risk and every 2 years for high/medium risk customers. Now, full KYC is due every 10 years for low risk, every 8 years for medium risk, and every 2 years for high risk. Additionally, a lighter 'positive confirmation' process must be done every 3 years for low risk and every 2 years for medium risk customers.
What it means for you
This reduces the compliance burden on banks and customers, especially for low-risk accounts where documents rarely change. Banks must still conduct ongoing due diligence and transaction monitoring. The new timelines allow more efficient resource allocation, focusing intense KYC efforts on high-risk customers while streamlining processes for others.
What you must do
Update your bank's KYC policy to reflect the new full KYC timelines: 10 years for low risk, 8 for medium, 2 for high risk.
Implement a system for positive confirmation every 2 years for medium risk and every 3 years for low risk customers.
Ensure fresh photographs are obtained from minor customers when they become major.
Continue ongoing due diligence and transaction monitoring for all customers as per existing AML/CFT guidelines.
Who it affects
Regional Rural Banks (RRBs), State and Central Co-operative Banks, All customers of these banks, especially low and medium risk account holders
❓ Common questions
What is the new full KYC updation frequency for low risk customers?
Full KYC exercise must be done at least every ten years for low risk individuals and entities.
Do we still need to do anything for medium risk customers between full KYC updates?
Yes, positive confirmation (e.g., via email, letter, or phone) is required at least every two years for medium risk customers.
Are there any changes for high risk customers?
No change for high risk—full KYC remains required at least every two years.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/161
RPCD.RRB.RCB.BC.No.84/07.51.018/2013-14
July 25, 2013
The Chairmen / CEOs of all Regional Rural Banks /
State and Central Co-operative Banks
Dear Sir,
Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002 - Simplifying norms for Periodical Updation of KYC
Please refer to paragraph 4 of our circular RPCD.CO.RRB.No.BC. 50/03.05.33(E)/2007-08 dated February 27, 2008 and RPCD.CO.RF.AML.BC.No. 51/07.40.00/2007-08 dated February 28, 2008 on Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT) which states that “Banks should introduce a system of periodical updation of customer identification data (including photograph/s) after the account is opened. The periodicity of such updation should not be less than once in five years in the case of low risk category customers and not less than once in two years in case of high and medium risk categories”.
2. The issue has been reviewed in the light of practical difficulties/constraints expressed by bankers/customers in obtaining/submitting fresh KYC documents at frequent intervals as the relative documents submitted earlier specially by low-risk customers have remained unchanged in most of the accounts. Accordingly, based on the suggestions received, it has been decided to amend the instructions as under:
a) Banks would need to continue to carry out on-going due diligence with respect to the business relationship with every client and closely examine the transactions in order to ensure that they are consistent with their knowledge of the client, his business and risk profile and, wherever necessary, the source of funds.
b) Full KYC exercise will be required to be done at least every two years for high risk individuals and entities.
c) Full KYC exercise will be required to be done at least every ten years for low risk and at least every eight years for medium risk individuals and entities.
d) Positive confirmation (obtaining KYC related updates through e-mail/letter/telephonic conversation/forms/interviews/visits, etc.), will be required to be completed at least every two years for medium risk and at least every three years for low risk individuals and entities.
e) Fresh photographs will be required to be obtained from minor customer on becoming major.
3. Banks may revise their KYC policy in the light of the above instructions and ensure strict adherence to the same.
Yours faithfully,
(A. Udgata)
Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/161 · issued 25 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
Implement a system for positive confirmation every 2 years for medium risk and every 3 years for low risk customers.
📜 Compliance
Update your bank's KYC policy to reflect the new full KYC timelines: 10 years for low risk, 8 for medium, 2 for high risk.
Ensure fresh photographs are obtained from minor customers when they become major.
Continue ongoing due diligence and transaction monitoring for all customers as per existing AML/CFT guidelines.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Regional Rural Banks (RRBs), State and Central Co-operative Banks, All customers of these banks, especially low and medium risk account holders), your first concrete step on “RBI Eases KYC Updation Norms for RRBs and Co-op Banks” is: “Update your bank's KYC policy to reflect the new full KYC timelines: 10 years for low risk, 8 for medium, 2 for high risk.” (RBI issued this 25 Jul 2013).
Circular: RBI/2013-14/161 -- RBI Eases KYC Updation Norms for RRBs and Co-op Banks
Issued: 25 Jul 2013
Action required: Update your bank's KYC policy to reflect the new full KYC timelines: 10 years for low risk, 8 for medium, 2 for high risk.
Action required: Implement a system for positive confirmation every 2 years for medium risk and every 3 years for low risk customers.
Action required: Ensure fresh photographs are obtained from minor customers when they become major.
Action required: Continue ongoing due diligence and transaction monitoring for all customers as per existing AML/CFT guidelines.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8270&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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