Summary of this article
RBI observes Financial Literacy Week 2026 on KYC awareness
Campaign explains Central KYC, compliance process and fraud risks
Banks conduct nationwide outreach and financial literacy programmes
The Reserve Bank of India (RBI) is observing Financial Literacy Week 2026 from February 9-13, 2026, on the theme KYC - Your First Step to Safe Banking. The initiative was inaugurated by RBI Governor Sanjay Malhotra in Mumbai. During the week, the central bank, along with banks and other stakeholders, will be carrying out awareness programs across the country.
Financial Literacy Week has been observed annually by RBI since 2016 to improve public understanding of financial issues. Each year, the campaign focuses on a specific theme. In 2026, the emphasis is on Know Your Customer compliance and its role in maintaining safe and uninterrupted banking services.
Importance Of Compliance with KYC
KYC is a process through which banks verify the identity and address of the customers. This crucial process is also required to open bank accounts and to avail most of the financial services. Banks are also mandated to update customer details periodically depending on the risk classification.
RBI has clarified that non-compliance or delay in updating KYC may result in restriction of bank accounts, including restrictions on withdrawal and transfers. As part of the Financial Literacy Week campaign, RBI is explaining the KYC process and the steps taken in updating the customer information.
Central KYC And Simplified Process
The campaign also emphasises the Central KYC framework. Under Central KYC, customer records are kept at a central database and are available to be used by banks and financial institutions on the basis of customer consent. This cuts down on the need for customers to have to fill out the same documents more than once when opening accounts or investing in financial products.
RBI has enabled several modes of KYC namely: Aadhaar-based electronic KYC, video-based customer identification, and digital document repository usage. These are aimed at reducing the physical paperwork and enhancing access to banking services.
Fraud Risks And Money Mule
One of the focus areas during Financial Literacy Week 2026 is the awareness about KYC related frauds. RBI has warned the customers against responding to the unsolicited calls, messages or links seeking KYC updates. Such communications are often used to get personal information or gain unauthorised access to bank accounts.
The campaign also includes messaging on money mule activity, where people allow their bank accounts to be used for the movement of illegal funds. RBI has declared that account holders are still responsible for the transactions made through their accounts.
Outreach Activities Across the Regions
RBI's regional offices including the Panaji Regional Office are coordinating with the banks and the local stakeholders to conduct awareness and outreach programs. These efforts are based on the prior campaigns relating to financial inclusion schemes and re-KYC of bank accounts.
