Banks Across India Make Major Decision, Verification Rules Changed

New Delhi: Banks across India have made a major decision, changing the rules for verification. According to the new decision, bank account holders will now be verified physically at the bank instead of online. This means that even those who apply for a bank account online will now have to visit the bank for physical verification. Alternatively, a relationship manager will either call the account holder to the bank for verification or visit the account holder’s home for verification.

Banks have changed the verification rules due to the increasing number of cases of identity theft and fraudulent accounts. While the shift from online to physical verification will impact the digital banking system, the rising number of fraudulent accounts and scams necessitates this step back from complete digitalization. ICICI Bank, HDFC Bank, State Bank of India, Bank of India, and Bank of Baroda, among others, have now put a curb on digitalization.

Banks have started asking their customers to visit their nearest branch to submit documents and complete the verification process. Bank officials are also being sent to customers’ homes for verification. Banks can be fined if they fail to follow the Know Your Customer (KYC) protocol while opening accounts. ICICI Bank has completely stopped its instant account opening service. Only salary accounts are opened online; for other accounts, a bank official visits the customer’s home to open the account.

Several cases of fraudulent accounts were reported at ICICI Bank, Bank of Baroda, Bank of India, and State Bank of India in 2024. Money was transferred fraudulently through these accounts. Due to these fraudulent activities, these banks have tightened the rules for online account opening services. Bank branches have been instructed to open bank accounts only within their designated areas. Accounts in other areas must be opened by the respective branches in those areas. Previously, banks primarily targeted savings and current accounts, but due to the increasing cases of fraud associated with digital banking, verification has become mandatory even for opening savings accounts.