The Himachal Pradesh government has begun a massive re-KYC exercise for all 19.20 lakh Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts in the state, with the Union Finance Ministry setting September 30 as the deadline. The move comes amid concerns that nearly 25 percent of these accounts are inactive, with no transactions recorded in the past 11 years.
From October, banks will start sending notices to account holders who fail to update their KYC details. Customers who ignore three notices will have their accounts temporarily closed. Officials say the re-KYC process will help strengthen banking security, ensure account activation, and curb cases such as money laundering.
The Jan Dhan Yojana, launched on August 28, 2014, aimed to connect every citizen to formal banking. Under the scheme, accounts can be opened with zero balance and come with benefits such as ATM cards, insurance cover, and overdraft facilities. However, in Himachal, Rupay cards of 4.54 lakh customers were never activated, depriving them of the ₹2 lakh accident insurance cover linked to the card.
Zero balance accounts remain a challenge, making up 13 percent in cooperative banks, 10.18 percent in public sector banks, and a staggering 53.38 percent in small finance banks. Bankers say the upcoming KYC verification will give a clear picture of the number of truly active accounts in the state.
Special camps will be organised in rural areas to ensure that even customers in remote areas complete the process in time. Account holders will need to submit Aadhaar, voter ID, or PAN, along with a residence certificate and passport-size photograph.
In addition to re-KYC, account holders will now be allowed to register multiple nominees for their bank accounts, a change from the earlier limit of one. This will allow them to decide how the balance is shared among nominees after their death, helping to prevent future succession disputes.
