NewKerala.com

Key Points

SBI Chairman CS Setty has announced the bank's initiative to simplify KYC processes for customers. The bank is actively working with regulators and the government to make these procedures more user-friendly. Setty emphasized that the transition to expected credit loss systems won't significantly impact bank balance sheets due to extended transition periods. The chairman also highlighted the need for better collection mechanisms before expanding UPI-based credit products.

Key Points: SBI Chairman CS Setty Announces KYC Process Simplification Plan

  • SBI collaborating with regulators and government to streamline KYC procedures
  • Bank focusing on user-friendly processes as more join banking network
  • Expected credit loss system transition won't significantly impact bank balance sheets
  • SBI strengthening collection mechanisms before expanding UPI credit products
2 min read

SBI working to simplify KYC process: Chairman CS Setty

SBI Chairman reveals bank's initiative to simplify KYC procedures, working with regulators to make banking more user-friendly for all customers.

"We are working on the simplification of KYC processes - CS Setty, SBI Chairman"

Mumbai, Oct 8

State Bank of India (SBI) Chairman CS Setty said on Wednesday that the bank is working on simplifying the Know Your Customer (KYC) and re-KYC processes to make them more user-friendly.

Speaking to reporters on the sidelines of Global Fintech Fest 2025, he added that SBI will work closely with regulators and the government to bring these changes.

“We are working on the simplification of KYC processes. Even if it means engaging with regulators and the government, we are taking the initiative from SBI’s side to make the entire KYC process easier,” Setty told reports.

“I think banks like SBI are well-versed in acquisition and financing,” he added.

He said the shift to an expected credit loss (ECL) based system of asset provisioning will not impact the balance sheets of banks, given the extended transition period given by the central bank.

“Technologically we are ready in terms of models and all, maybe some adjustments are required based on the final guidelines which have been ensured, but more importantly the long transition time which is given, we believe that there will be limited impact on the balance sheets of the banks,” he added.

Setty highlighted the need for a simpler KYC system, especially as more people are joining the formal banking network.

He said all stakeholders -- including policymakers, fintech companies, and technology developers -- must work together to streamline KYC procedures for better inclusion.

Earlier this year, on June 12, the Reserve Bank of India (RBI) revised its KYC rules to make the process more flexible.

The new guidelines allow Business Correspondents (BCs) to help customers with KYC updates and require banks to send advance reminders for KYC deadlines.

The RBI had also noted a large backlog in KYC updates for accounts linked to government schemes such as Direct Benefit Transfers (DBT), Electronic Benefit Transfers (EBT), and the Pradhan Mantri Jan-Dhan Yojana (PMJDY).

Speaking about lending on digital platforms, Setty said that SBI needs to strengthen its loan collection mechanism before introducing more credit products on the Unified Payments Interface (UPI).

“We need to get the collection piece right before launching more products on UPI. It’s a very powerful tool and a key element of inclusive credit for people,” he said.

- IANS

Share this article:

Reader Comments

R
Rohit P
Good initiative by SBI. The KYC backlog in Jan Dhan accounts is affecting many poor families who depend on government benefits. Streamlining this will help financial inclusion.
A
Arjun K
While I appreciate the intent, I hope this doesn't compromise security. Digital fraud is rising and KYC is our first line of defense. Balance is key 🔒
S
Sarah B
As someone who works in fintech, this is much needed! The current KYC process creates friction for new customers. Simplification will boost digital banking adoption across India.
V
Vikram M
SBI should focus on making the process digital-first. Physical branch visits for KYC updates are time-consuming. Video KYC and digital document submission should be the norm.
M
Michael C
The mention of UPI credit products is interesting. If SBI can get the collection mechanism right, this could revolutionize small-ticket lending in India. Looking forward to seeing how this develops!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50