SBI New Rule – The State Bank of India (SBI), the largest public sector bank in the country, has rolled out a significant policy change that is leaving customers across India both surprised and confused. As of July 2025, SBI has issued a fresh set of banking rules that directly impact millions of savings and current account holders. This update is part of SBI’s broader digital and regulatory compliance initiative, aiming to enhance security, prevent fraudulent transactions, and streamline banking services.
Many customers have reported receiving messages and emails from the bank, prompting them to update key personal information and complete certain mandatory verifications. The rule has triggered concern among users, especially senior citizens and rural customers, who fear penalties or account restrictions if they fail to act promptly.
This article aims to decode the latest SBI rule update for 2025 in a simple, step-by-step format. Whether you’re a long-time customer or a recent SBI account holder, understanding these new requirements is crucial to maintaining seamless banking access. Read on to get the full picture and know what actions you need to take immediately to stay compliant and avoid disruptions in your banking operations.
What Is the New SBI Rule All About?
In July 2025, SBI announced a mandatory compliance rule for all account holders to re-verify their KYC and link updated Aadhaar and PAN details.
- Applicable to both Savings and Current Account holders
- Deadline for compliance: August 31, 2025
- Non-compliance may result in transaction restrictions or temporary freezing of account
- Rule applies to individual, joint, and business account holders
- Digital verification via YONO and SBI Net Banking enabled
- Paper-based verification also available at nearest branch
Key Changes Introduced in the Latest Rule
SBI’s latest update includes a combination of KYC validation, mobile linking, and UPI re-verification. Here’s a breakdown of what’s changing:
| Rule Element | Requirement | Mode of Compliance | Deadline | Applicable Accounts | Penalty for Delay | Verification Needed From |
|---|---|---|---|---|---|---|
| Aadhaar Linking | Mandatory for all active accounts | Online/Branch | 31 Aug 2025 | All | Account Freeze | All Individual Holders |
| PAN Update | Required for transactions > ₹50,000 | Online/Offline | 31 Aug 2025 | Savings, Current | No Large Transactions | All Account Holders |
| Mobile Number Verification | Must match KYC details | YONO/App/Branch | 31 Aug 2025 | All | OTP Failure on Login | Individual & Joint |
| KYC Re-verification | Full KYC submission for dormant a/c | Physical Visit Required | 31 Aug 2025 | Dormant, Inactive | Account Remains Frozen | Dormant Account Holders |
| UPI ID Verification | Re-validate existing UPI handles | YONO/Net Banking | 31 Aug 2025 | Savings, Digital Wallets | UPI Suspension | UPI Users |
| Nominee Declaration | Mandatory for all accounts | Form Submission Required | 31 Aug 2025 | Savings, Joint, Senior | Account Suspension | All |
| e-KYC via Aadhaar OTP | Optional for minor updates | Online (OTP) | Anytime | All | None | Optional Users |
| Account Holder Photo | Updated photograph as per guidelines | At Branch with ID Proof | 31 Aug 2025 | All | Delay in KYC Approval | All |
Why This Rule Is Mandatory for All Customers
The RBI has issued new compliance guidelines for banks to conduct periodic KYC and identity verification. SBI, aligning with these norms, is ensuring enhanced customer safety and preventing misuse of dormant or ghost accounts.
- Helps prevent frauds and identity theft
- Ensures transactions meet RBI regulatory standards
- Avoids account freezing due to outdated KYC
- Improves transparency in digital banking
- Enables smooth UPI and card-based payments
Risk of Ignoring the New Rule
Failure to comply may not only lead to account restrictions but also affect credit ratings and eligibility for loans or overdraft facilities.
| Risk Type | Impact on Customer |
|---|---|
| Transaction Freeze | Inability to withdraw or deposit funds |
| Cheque Return Charges | Due to insufficient account activity |
| Credit Score Dip | Due to account inactivity |
| Loan Application Delays | Rejected due to non-compliance |
| UPI Suspension | Blocked due to verification lapse |
| SMS/OTP Failure | Missed authentication attempts |
How to Update KYC and Link Aadhaar-PAN
All SBI customers must complete the KYC update using one of the following methods:
- Visit nearest SBI branch with valid ID (Aadhaar, PAN, Address Proof)
- Use YONO App > Profile > Update KYC
- Send email to SBI with scanned documents (if applicable)
- SMS-based verification for minor updates
Step-by-Step KYC Update Process via Branch
For those not comfortable with digital methods, here’s the in-branch process:
- Visit your home SBI branch with original documents
- Request for KYC Update Form
- Fill in all mandatory sections
- Attach recent passport-size photograph
- Submit Aadhaar, PAN, and address proof copy
- Wait for 2-3 working days for processing
Departmental Contact Details for Assistance
If you need help updating your documents or have queries about the new rules, contact these SBI departments:
| Department | Contact Number | Email ID | Working Hours |
|---|---|---|---|
| Customer Care Helpline | 1800-1234 | [email protected] | 8 AM – 8 PM (All Days) |
| KYC Support Team | 022-22744400 | [email protected] | 10 AM – 5 PM (Weekdays) |
| Digital Services | 1800-11-2211 | [email protected] | 24×7 |
| Branch Services | Contact Home Branch | Visit SBI website for branch | Working Days Only |
| Grievance Redressal | 022-22740772 | [email protected] | Mon-Fri, 10 AM – 6 PM |
Timeline and Penalty Details
The bank has given a clear deadline for all customers to comply. Here are the timelines and applicable consequences:
| Date | Action Required | Consequence for Missing |
|---|---|---|
| 21 July 2025 | Rule Announced | Start Compliance |
| 1 August 2025 | SMS Alerts Begin | Reminder Notification |
| 31 August 2025 | Last Date for All KYC Updates | Account Freezing Begins |
| 5 September 2025 | UPI and NetBanking Restrictions Apply | No Online Access |
Categories of Users Most Affected
The rule change affects all customers, but these categories are most impacted:
Senior Citizens and Pensioners
Many senior customers are not digitally active and may find it challenging to complete online verifications.
- May require branch visits
- Could face account freeze if KYC not updated
- Must ensure mobile number is linked
NRIs and Overseas Customers
NRIs often hold dormant or infrequently used SBI accounts.
- Must submit updated KYC via email or consulate
- Can use SBI Global Services
- Might face online restrictions without local mobile number
Students and First-Time Account Holders
New account holders or student savings accounts are also under the purview of this new rule.
- Aadhaar and PAN must be submitted
- Guardian’s documents may also be required
- Ensure nominee details are filled
Rural Account Holders
Customers in rural branches may face difficulty due to lack of awareness or internet access.
- Must visit branch before deadline
- Gram Seva Kendras can assist in submission
- Can call toll-free helpline for support
Table Summary: SBI Compliance at a Glance
| User Type | Must Update KYC | Aadhaar Link Needed | UPI Affected | Visit Branch Required |
|---|---|---|---|---|
| Individual | Yes | Yes | Yes | Optional |
| Joint Account | Yes | Yes | Yes | Yes |
| Dormant Account | Yes | Yes | Yes | Yes |
| NRI Account | Yes | Yes | No | No (Email Submission) |
| Senior Citizens | Yes | Yes | Yes | Yes |
| Digital Users | Yes | Yes | Yes | No |
Frequently Asked Questions
1. What is the last date to update SBI KYC as per the new rule?
The deadline is August 31, 2025.
2. Will my account be frozen if I don’t comply?
Yes, transactions may be restricted if KYC and linking are not completed.
3. Can I update my KYC online?
Yes, via the YONO app or SBI Net Banking.
4. Do NRIs need to follow this rule?
Yes, they can submit KYC through email or consulate.
5. Is Aadhaar linking mandatory for joint account holders?
Yes, each holder must provide their Aadhaar details.
