In order to fortify the current system, banks intend to add more KYC (Know Your Customer) verification levels. Lenders are acting in accordance with the plan under discussion with the Center and the Reserve Bank of India in order to maintain transparency and stop fraudulent activity in the banking sector. Those who have one phone number associated with several separate or joint accounts should pay special attention to this. Additionally, banks would ask for additional documentation from people who have opened multiple accounts using various documents.

A committee headed by Finance Secretary TV Somanathan was previously established by the Center to standardize and guarantee that KYC standards are compatible with one another throughout the banking industry.

A senior bank official told The Economic Times, "We are looking at multi-level secondary identifiers such as PAN, Aadhaar, and unique mobile number (UMN) for joint accounts as well."

If an individual opens many accounts with distinct KYC documents and they are not linked, the second layer of identifiers will enable the tracking of those accounts. "This will also help in extending the account aggregator, or AA network, to joint accounts," said the official.

To open a bank account, consumers are currently required by banks to present their driver's license, voter card, NREGA card, passport, or Aadhaar.

In an effort to fortify the client verification process, the central bank released updated KYC standards last year. This requires banks and non-banking financial organizations (NBFCs) to periodically update their KYC in accordance with a risk-based strategy.

According to earlier reports, the Center plans to implement consistent KYC standards by May or June of this year for the financial industry. These standards would be rated according to the risk profile of an entity or consumer. During the most recent Financial Stability and Development Council (FSDC) meeting, the timing for unified KYC was discussed.

The central bank modified the 'Master' KYC rules following a review. As a result, banks, NBFCs, and other organizations under the RBI's jurisdiction will need to follow the guidelines and perform due diligence on their clients.