KYC Updation Norms Simplified for Urban Co-op Banks
Current · Source: Reserve Bank of India · RBI/2013-14/167 · issued 31 Jul 2013 · ~2 min read
Quick answerRBI has eased KYC periodicity for UCBs: full KYC every 2 years for high-risk, 8 for medium, 10 for low risk. Positive confirmation every 2 years (medium) and 3 years (low risk). Fresh photos on minor becoming major.
The rule, in the simplest words
Full KYC is required every 2 years for high-risk customers, every 8 years for medium-risk, and every 10 years for low-risk.
Positive confirmation is required every 2 years for medium-risk customers and every 3 years for low-risk customers.
Fresh photographs are required from minor customers when they become major.
How it plays out — a real example
As a KYC & compliance officer in Indore, I need to ensure that our bank follows the RBI's new KYC updation norms. For example, when a customer who is considered medium-risk comes in for a loan renewal, I will need to do a full KYC check every 8 years, but in between, I will need to do a positive confirmation every 2 years to ensure their information is up-to-date. This will help us reduce the compliance burden for our customers while still maintaining ongoing due diligence.
What changed
Earlier, KYC updation was required at least once in five years for low-risk and once in two years for high/medium risk customers. Now, full KYC frequency is extended to every eight years for medium risk and every ten years for low risk, while high risk remains every two years. Additionally, a lighter 'positive confirmation' process is introduced every two years for medium risk and every three years for low risk.
What it means for you
UCBs can reduce the compliance burden for low and medium risk customers by spacing out full KYC renewals, but must still maintain ongoing due diligence. The new positive confirmation step ensures periodic contact without requiring fresh documents each time. Banks need to update their KYC policies and ensure strict adherence to these revised timelines.
What you must do
Revise your bank's KYC policy to reflect the new periodicity: full KYC every 2 years for high risk, 8 for medium, 10 for low 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 upon their becoming major.
Continue ongoing due diligence and transaction monitoring for all risk categories.
Who it affects
Primary (Urban) Co-operative Banks (UCBs), All UCB customers (low, medium, high risk), Minor customers turning major
❓ 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.
What does 'positive confirmation' mean and how often is it required?
Positive confirmation is obtaining KYC updates through email, letter, phone, forms, interviews, or visits. It is required every two years for medium risk and every three years for low risk customers.
Do these changes apply to high risk customers?
Yes, high risk customers still require full KYC every two years, unchanged from the earlier norm.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/167
UBD.BPD (PCB) Cir. No. 2 /14.01.062/2013-14
July 31, 2013
The Chief Executive Officer
All Primary (Urban) Co-operative Banks
Dear Sir,
Know Your Customer (KYC)/Anti Money Laundering (AML) Standards/Combating Financing of Terrorism (CFT)/ Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002 – Simplifying norms for Periodical Updation of KYC - Primary (Urban) Co-operative Banks (UCBs)
Please refer to paragraph 2.4 (d) of our Master circular UBD.BPD.(PCB).MC.No.16 /12.05.001/2013-14 dated July 1, 2013 on Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards/Combating Financing of Terrorism (CFT)/Obligations of banks under PMLA, 2002 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) Primary (Urban) Co-operative Banks (UCBs) 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 eight years for medium risk and at least every ten years for low 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 customers on their becoming major.
3. UCBs may revise their KYC policy in the light of the above instructions and ensure strict adherence to the same.
Yours faithfully,
(A.K. Bera)
Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/167 · issued 31 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
Revise your bank's KYC policy to reflect the new periodicity: full KYC every 2 years for high risk, 8 for medium, 10 for low risk.
Ensure fresh photographs are obtained from minor customers upon their becoming major.
Continue ongoing due diligence and transaction monitoring for all risk categories.
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 (Primary (Urban) Co-operative Banks (UCBs), All UCB customers (low, medium, high risk), Minor customers turning major), your first concrete step on “KYC Updation Norms Simplified for Urban Co-op Banks” is: “Revise your bank's KYC policy to reflect the new periodicity: full KYC every 2 years for high risk, 8 for medium, 10 for low risk.” (RBI issued this 31 Jul 2013).
Action required: Revise your bank's KYC policy to reflect the new periodicity: full KYC every 2 years for high risk, 8 for medium, 10 for low 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 upon their becoming major.
Action required: Continue ongoing due diligence and transaction monitoring for all risk categories.
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=8280&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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