KYC (Know Your Customer) verification is mandatory for all banking operations in India, but customers often face various challenges during this process. This comprehensive guide addresses common KYC problems and provides practical solutions to help you complete KYC without difficulties.
Common KYC Problems and Their Solutions
Incomplete or Incorrect Documents
Problem: Many customers face rejection of KYC applications because their documents have incomplete information, wrong spelling of names, or missing details.
Solution:
Ensure all documents are filled completely and accurately
Match the spelling of your name across all documents
If there’s a spelling variation, provide a gazette notification or affidavit showing the name change
Use original documents, not expired ones
Make sure address on documents matches your current residence
Address Proof Issues
Problem: Customers are often unable to provide valid address proof because they recently moved, are in rental housing, or don’t have utility bills in their name.
Solution:
According to RBI guidelines, banks can accept rent agreements, electricity bills, water bills, or landlord certification
If you don’t have utility bills, provide a letter from your society or landlord on letterhead
For NRI customers, provide attestation from the Indian embassy
Temporary address can be provided with a declaration and supporting document
Bank statements or insurance policy letters can also serve as address proof
Aadhaar Card Linking Issues
Problem: Customers face problems when their Aadhaar card details don’t match with their bank records or when their Aadhaar application is still pending.
Solution:
Update your Aadhaar card online through the UIDAI portal (uidai.gov.in)
Link your Aadhaar with your existing bank accounts through net banking
If Aadhaar application is pending, provide other valid identity proof like PAN or passport
Use the Aadhaar correction window provided by UIDAI
Contact your nearest Aadhaar enrollment center for assistance
Missing or Expired Identity Proof
Problem: Passport, PAN card, or other identity documents may be expired or missing altogether.
Solution:
Renew your passport online through the passport service portal
Apply for a new PAN card through the income tax e-filing portal
For voters who lost their voting card, apply for duplicate at your nearest election office
Students can use valid student ID cards issued by recognized institutions
Temporarily use any two government-issued identity documents if one is expired
Name Variation Across Documents
Problem: KYC rejection occurs when the customer’s name appears differently across various documents (full name vs. short name, spelling variations, additions of middle names).
Solution:
Obtain an affidavit from a notary public stating all variations are the same person
Provide a gazette notification if you legally changed your name
Get a certificate from your school or employer showing name variations
Banks may allow KYC based on one primary document with an affidavit for variations
Update your legal name in all documents for future consistency
Age-Related KYC Issues
Problem: Minors cannot open accounts independently, and customers over 60 face unnecessary complications in the simplified KYC process.
Solution:
For minors: A parent or legal guardian must be present with their KYC documents
For senior citizens: Request the simplified KYC procedure as mandated by RBI
Provide birth certificate or school admission certificate as age proof for minors
For customers without birth proof, school leaving certificate or educational qualification certificate works
NRI KYC Complications
Problem: Non-resident Indians face additional requirements and delays in KYC verification.
Solution:
Provide embassy or consulate attestation of address
Use International passport for identity proof
Provide NRE (Non-Resident External) account-specific documents
International phone number and email can be provided
Banks may request additional documents like visa or employment letter for NRI verification
Online KYC Rejection
Problem: E-KYC or online KYC is rejected due to poor document quality, unclear photographs, or system errors.
Solution:
Ensure documents are scanned clearly with no blurs or shadows
Photograph should be recent and in color
File size should be within permissible limits (usually 100-500 KB)
Use supported file formats (JPG, PDF)
Retry the process using a different browser or device
Visit the nearest bank branch for physical verification if online fails
Biometric Verification Failures
Problem: Fingerprint or facial recognition fails during e-KYC due to poor image quality, worn fingerprints, or technical issues.
Solution:
Clean your fingers before fingerprint scanning
Ensure proper lighting for facial recognition
Remove glasses or face masks during facial verification
Visit during daytime for better image quality
Contact bank support if technical issues persist
Request manual verification as an alternative
Video KYC Issues
Problem: Video KYC fails due to poor internet connectivity, unclear video quality, or system problems.
Solution:
Use a stable broadband connection, not mobile data
Ensure good lighting and clear camera view
Test your camera and microphone before the session
Schedule during daytime for better visibility
Have all documents ready and within camera view
Use a computer rather than mobile for better quality
Duplicate Account Issues
Problem: Banks reject KYC applications because a customer already has an account with another bank or the same bank.
Solution:
Check if you already have accounts in other banks through a credit report
If you want multiple accounts with different purposes, inform the bank
Maintain different pan numbers or unique identifiers for each account
For accounts mistakenly opened, close the duplicate account
Foreign Address Issues
Problem: Customers living abroad struggle to provide address proof for KYC.
Solution:
Provide international address with passport and visa
Use embassy or consulate certification for address verification
Provide utility bills (electricity, phone, internet) from your foreign residence
Apartment lease or owner certification works for foreign addresses
Banks may use PIO (Person of Indian Origin) or NRI-specific documents
PAN and Aadhaar Linking Issues
Problem: PAN and Aadhaar linking in the income tax department delays or prevents successful KYC.
Solution:
Link your PAN to Aadhaar through the NSDL or income tax e-filing portal
Use the NSDL portal (www.nsdl.co.in) for immediate linking
Wait for 24 hours after linking before submitting KYC
If linking fails, contact the income tax helpline
Provide both PAN and Aadhaar separately if automatic linking fails
Rejection Due to CIBIL or Credit Report Issues
Problem: KYC is rejected because the customer has defaulted on previous loans or has a poor credit history.
Solution:
Check your CIBIL score through authorized credit bureaus
File disputes for any incorrect entries on your credit report
Pay off existing dues or settle disputed amounts
Once disputes are resolved, reapply for KYC
Provide an explanation letter if there were genuine reasons for defaults
Bank-Specific KYC Problems
Problem: Different banks have different KYC requirements, and customers are confused about which documents to provide.
Solution:
Check the bank’s official website for specific KYC requirements
Call the bank’s customer service before visiting
Visit the bank branch and ask for KYC requirement documentation
Request a checklist from the bank to avoid repeated rejections
Consult the RBI website for standardized KYC guidelines all banks must follow
Time Delays in KYC Processing
Problem: Even after submitting correct documents, KYC verification takes longer than expected.
Solution:
Follow up with the bank after 7-10 working days
Request the bank to provide a reference number for tracking
Verify if home verification is pending and coordinate with the bank
Check your email and SMS for any additional document requirements
Escalate to the branch manager if processing extends beyond 30 days
RBI Guidelines and Compliance
According to the RBI’s Master Direction on Know Your Customer, all banks must:
Accept standardized identity and address proof documents
Complete KYC verification within 30 days
Allow multiple formats of documents
Provide customers with a rejection reason in writing
Maintain customer privacy and data security
Allow re-submission of documents if initially rejected
How to Prevent KYC Problems
- Gather all required documents before visiting the bank
- Ensure all spellings and details match across documents
- Provide clear, legible scans or photocopies
- Keep your Aadhaar and other IDs updated
- Maintain good financial standing to avoid credit issues
- Follow up regularly with the bank
- Request written confirmation of KYC completion
- Save all KYC-related correspondence and receipts
Contacting Bank Support for KYC Issues
If you face persistent KYC problems:
Call the bank’s customer service hotline
Visit the branch manager in person
Write a formal complaint letter to the bank
Escalate to the RBI Ombudsman if the bank doesn’t resolve the issue
Contact your state’s banking ombudsman office
Conclusion
KYC issues are common but almost always resolvable by providing correct documentation and following proper procedures. By understanding common problems and their solutions, customers can complete their KYC verification smoothly. Remember that banks are obligated to complete KYC within the RBI’s prescribed timeframe. If you encounter persistent issues, don’t hesitate to escalate the matter through official complaints channels.