State Bank of India Chairman CS Setty stated on Wednesday that the bank is working to simplify the Know Your Customer (KYC) and re-verification of Know Your Customer (re-KYC) procedures to make them more accessible to users. Speaking at the Global Fintech Fest 2025, he stated that SBI will coordinate with regulators and the government to introduce the changes and simplify compliance for customers.
Setty explained that the transition to an expected credit loss-based system for asset provisioning would have minimal effect on banks’ balance sheets due to the extended adjustment period set by the Reserve Bank of India. He noted that SBI is technologically prepared, with only minor model revisions expected once final guidelines are issued.
He emphasized the need for a streamlined KYC process as more citizens join the formal banking network, urging collaboration among policymakers, fintechs, and technology developers to enhance inclusion. The RBI revised its KYC rules on June 12 to allow Business Correspondents to assist customers and require banks to send advance reminders for updates.
On digital lending, Setty said SBI must improve its collection systems before introducing more credit products on the Unified Payments Interface. He described UPI as a powerful tool for promoting inclusive credit once the collection framework is strengthened.
Setty explained that the transition to an expected credit loss-based system for asset provisioning would have minimal effect on banks’ balance sheets due to the extended adjustment period set by the Reserve Bank of India. He noted that SBI is technologically prepared, with only minor model revisions expected once final guidelines are issued.
He emphasized the need for a streamlined KYC process as more citizens join the formal banking network, urging collaboration among policymakers, fintechs, and technology developers to enhance inclusion. The RBI revised its KYC rules on June 12 to allow Business Correspondents to assist customers and require banks to send advance reminders for updates.
On digital lending, Setty said SBI must improve its collection systems before introducing more credit products on the Unified Payments Interface. He described UPI as a powerful tool for promoting inclusive credit once the collection framework is strengthened.
