State Bank of India's (SBI's) chairman CS Setty on October 8 said that the lender is working on the simplification of Know Your Customer (KYC) and re-KYC and will engage with the regulators and the government.
"We are working on that, the simplification of KYC processes. Even if it means that we need to engage with the regulators and the government, we are taking that initiative from the SBI side to simplify the whole process of KYC," Setty said during the panel discussion at Global Fintech Fest 2025.
Setty also said when a large number of customers are joining the mainstream banking, we need to really look as all of us, including policy makers, fintech developers, technology developers, on how do we simplify the whole process of KYC.
On June 12, the Reserve Bank of India (RBI) amended its instructions on KYC updates, allowing Business Correspondents (BCs) to facilitate the process, and mandating advance notice for KYC reminders, among other changes.
The RBI said it has noted a significant backlog in periodic KYC updates, including in accounts opened for receiving Direct Benefit Transfers (DBT) or Electronic Benefit Transfers (EBT) for various government schemes, as well as accounts opened under the Pradhan Mantri Jan-Dhan Yojana (PMJDY).
Further, Setty said that the lender needs to get the "collections piece right" on the small value loans before rolling out other products on the UPI.
"We need to get the collection piece right before we roll out as many products on the UPI, but it is a very powerful tool which is available and it is also a critical element of inclusive credit available to the people," Setty said.
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