SBI’s research arm noted that the RBI’s decision to maintain the policy rate reflects a balanced approach amid global uncertainties, supported by stable liquidity and external conditions
State Bank of India (SBI) Chairman C.S. Setty announced that the bank is actively working to simplify the Know Your Customer (KYC) and re-KYC procedures to make them more user-friendly and accessible. Speaking on the sidelines of the Global Fintech Fest 2025, Setty emphasized that SBI is prepared to collaborate closely with both regulators and the government to bring about 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 said. He also noted that banks like SBI are well-positioned in acquisition and financing.
Setty underlined the importance of a simpler KYC system, especially with growing inclusion in the formal banking system. He called for cooperation among policymakers, fintech companies, and technology developers to streamline KYC, thereby improving access to banking services.
The move follows the Reserve Bank of India’s (RBI) decision in June 2025 to revise KYC rules to make them more flexible. The updated guidelines allow Business Correspondents (BCs) to assist customers with KYC updates and mandate that banks issue advance reminders before deadlines. The RBI also highlighted delays in KYC updates for accounts linked to government welfare schemes like DBT, EBT, and PMJDY.
On digital lending, Setty stated that while UPI holds promise for inclusive credit delivery, SBI must first improve its loan recovery framework. “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 explained.
Regarding broader financial reforms, Setty praised the RBI’s recent policy announcements as a strong step toward market modernization. These included moves like risk-based deposit insurance premiums and allowing bank financing for mergers and acquisitions, both seen as positive for bank profitability and credit growth.
He also welcomed regulatory changes aimed at improving foreign trade processes and easing exporter compliance through simplified forex systems like EDPMS/IDPMS.
SBI’s research arm noted that the RBI’s decision to maintain the policy rate reflects a balanced approach amid global uncertainties, supported by stable liquidity and external conditions.
The central bank’s cautious optimism on inflation and possible future rate cuts has been interpreted as a measured stance with room for adjustment based on future economic conditions.
