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.

He added that SBI will collaborate closely with the government and authorities to implement these improvements while addressing media on the sidelines of Global Fintech Fest 2025.

“We’re trying to make KYC procedures simpler. Setty told reporters, “We are taking the initiative from SBI’s side to make the entire KYC process easier, even if it means interacting with regulators and the government.”

He went on to say, “I believe banks like SBI are well-versed in acquisition and financing.”

Given the extended transition period provided by the central bank, he said, the move to an asset provisioning system based on expected credit loss (ECL) will not have an effect on bank balance sheets.

“We are technologically prepared in terms of models and everything; perhaps some modifications are needed in light of the final guidelines that have been guaranteed, but more significantly, given the extended transition period, we anticipate that the impact on the banks’ balance sheets will be minimal,” he continued.

As more people join the official banking network, Setty emphasized the need for a more straightforward KYC mechanism.

According to him, in order to improve inclusivity, all parties involved—including legislators, fintech firms, and software developers—must cooperate to expedite KYC processes.

The Reserve Bank of India (RBI) updated its KYC regulations on June 12 of this year in an effort to provide the procedure more flexibility.

The new rules mandate that banks provide prior notice of KYC deadlines and permit Business Correspondents (BCs) to assist clients with KYC updates.

Additionally, the RBI had observed a significant backlog in KYC updates for accounts associated with government programs like the Pradhan Mantri Jan-Dhan Yojana (PMJDY), Electronic Benefit Transfers (EBT), and Direct Benefit Transfers (DBT).

Regarding lending on digital platforms, Setty stated that before adding more credit products to the Unified Payments Interface (UPI), SBI must improve its loan collection system.

“Before releasing additional items on UPI, we must perfect the collection piece. It’s an extremely effective instrument and a crucial component of inclusive credit for individuals,” he stated.