CKYC 2.0: NRI Bank Accounts at Risk

CKYC 2.0 creates NRI banking concerns

Non-Resident Indians across the world are receiving troubling e-mails about their NRE and NRO accounts. They are being warned that without CKYC 2.0 re-verification, their bank accounts will be restricted.

The new CKCY 2.0 framework was rolled out from August 1, 2026. It is aimed to make the identity verification process for banks seamless through new software.

The re-verification requires banks having access to customers’ DigiLocker. They also require OTP-based consent.

However, this new framework has been nothing but a source of headaches for NRIs. More often than not, NRIs do not have an active Indian SIM, which is needed for verification.

The framework, despite its attempt at being seamless, also frequently fails to send the OTP needed. Bank customer care has also been unhelpful, asking NRIs to visit their branch in India in person with notarised copies of their passport and visa.

The issue is that new framework uses real-time APIs and OTP consent to fetch data from the central registry via a 14-digit ID. SEBI has eased re-KYC requirements for NRIs by not requiring them to be present in India for it, but many banks are yet to adapt to the new system.

Unless banks adapt to the new rules, NRIs will be forced to go through the difficult process of re-activating their Indian numbers. The only other alternative is to give family members a Power of Attorney (POA), another difficult process to coordinate.