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What is Re-KYC

Re-KYC (Re-Know Your Customer) is a mandatory periodic process where financial institutions must update and verify their customers’ information to maintain regulatory compliance. This procedure ensures your account details remain current and helps protect the financial system from fraud and security threats. Unlike the initial KYC completed during account setup, Re-KYC is an ongoing process to ensure that your profile remains accurate and up-to-date. The Reserve Bank of India (RBI) mandates this process to maintain the integrity of the banking system and ensure customer information reflects any life changes, such as address updates, employment changes or contact information modifications.

Business Risk Classifications and Re-KYC Timelines

Your business falls into any one of these risk classification based on the nature of your business.

Business Risk Classification|Nature of Business| Re-KYC Timeline

High-Risk Business|Complex financial activities, frequent large transactions or from specific geographic regions. Require stringent monitoring and regular updates to mitigate potential risks|Re-KYC is required every 2 years.

Medium-Risk Business|Moderate financial activity levels, such as salaried employees with stable incomes. Require periodic updates less frequently than high-risk businesses, but more often than low-risk profiles.|Re-KYC is required every 8 years.

Low-Risk Business|Simple financial profiles with stable income sources. Often include pensioners and individuals with long-standing, stable accounts who require the least frequent updates.|Re-KYC is required every 8 years.

Complete Re-KYC Process

Razorpay periodically collects and updates Re-KYC data from businesses as per RBI guidelines.

When to Complete Re-KYC

A Re-KYC completion deadline and banner will appear on your dashboard when action is needed. Please complete the process by the date shown to ensure uninterrupted use of all Razorpay products.

How to Complete Re-KYC

To complete Re-KYC:
1

Step 1

Click Update KYC.
2

Step 2

A new tab with your Basic details opens up. Review the details to ensure they are up-to-date. If you need to change any information, click the pencil icon to edit the details. Once everything is correct, click Continue. For example, to edit your name:
  1. Click the pencil icon next to your name.
  2. You will be able to edit your name. Make the required changes and click Continue.
3

Step 3

Verify your business type, PAN and other relevant documents. In case the details are incorrect or not up-to date, click the pencil icon to make changes and upload your latest documents.
4

Step 4

Click Continue. You can upload .pdf, .jpeg, .png or .jpg. Ensure that the file size does not exceed 25 MB. Know more about KYC Documents.
5

Step 5

Complete all the steps, select the check box and click Submit Application.
Watch Out!If your Re-KYC documents are non-compliant or require clarification, we will move your account to the Needs Clarification state. You must then re-upload or re-submit the necessary documents. Check the various Re-KYC statuses and the actions required based on your account ownership.

Actions and Consequences if Re-KYC is Not Completed

Timeline|Action|

30 Days Before Re-KYC Deadline|Your settlements will be put on hold 30 days before the deadline if your Re-KYC is not completed. You must update your KYC details before the due date to ensure continuous service.|

30 Days After Re-KYC Deadline|If your Re-KYC remains incomplete 30 days after the deadline, your settlements will stay on hold. We will then notify you that your account status will be updated to Live Disabled.|

60 Days After Re-KYC Deadline|If your Re-KYC remains incomplete 60 days after the deadline, your account status will be changed to Live Disabled.|

Example

This example demonstrates the critical actions and consequences if the Re-KYC process is not completed.Let’s say your business’s Re-KYC Deadline is January 30th.

Date|Status/Action Required|Consequence if Incomplete|

December 31st| 30 Days Before Re-KYC Deadline|If Re-KYC is still pending, your daily settlements will be put on hold to prevent the use of non-compliant funds.|

March 1st|30 Days After Re-KYC Deadline|Settlements remain on hold. You will be formally notified that your account status is being updated to Live Disabled.|

March 31st|60 Days After Re-KYC Deadline|Your account status is changed to Live Disabled.|

Re-KYC Status for Account Owners

  • Pending: As per RBI guidelines, you must verify your KYC periodically to validate the information shared during onboarding and update it if required. Please ensure all the necessary tasks are completed on time to avoid future disruptions. It will take 5-10 minutes to complete the process.
  • In Progress: You have made progress on your re-KYC, but it is not complete yet. Please review your details and upload any remaining documents to finish the process.
  • Under Review: We are currently working on your case. We will notify you within [X hours, starting value = 72 hours] with a status update, or if we need any other details.
  • Needs Clarification: Some submitted documents/details are incorrect or incomplete. Please resolve them at the earliest to complete your re-KYC process.
  • Rejected: Based on your re-KYC details, your business does not meet our terms of service. Please reach out to our support team for further assistance.
  • Approved: You can continue doing your business with Razorpay.

Re-KYC Status for Non-Owners

  • Pending: As per RBI guidelines, the account owner must verify the KYC periodically to validate the information shared during onboarding and update it if required. Please ensure all the necessary tasks are completed on time to avoid future disruptions. It will take 5-10 minutes for them to complete the process.
  • In Progress: The account owner is currently updating the KYC details. Please ensure that they update all the details.
  • Under Review: We are currently working on your case. We will notify you within [X hours, starting value = 72 hours] with a status update, or if we need any other details. (If ETA is breached, this changes to: “It is taking more time to work on your case than we expected. Please bear with us. Please reach out to our support team for assistance.”)
  • Needs Clarification: Some documents/details submitted by the account owner are incorrect/incomplete. Please ensure that they are able to resolve them to complete the re-KYC process.
  • Rejected: Based on the re-KYC, your business does not meet our terms of service. Please reach out to our support team for further assistance.
  • Approved: You can continue doing your business with Razorpay.