SBI’s Push for Seamless KYC: A Step Towards Truly Inclusive Banking

The State Bank of India (SBI), the country’s largest lender with more than 52 crore customers, is taking significant steps to make the Know Your Customer (KYC) process smoother, faster, and more digital. According to Chairman C.S. Setty, the bank is currently working closely with regulators and the government to simplify how customers verify their identity and update their KYC details.

Why KYC Simplification Matters
KYC is an essential part of the banking process. It helps prevent fraud, money laundering, and other illegal activities by confirming the identity of customers. However, for millions of people especially those in rural and semi-urban areas completing or updating KYC can be difficult.

Long queues, physical document submissions, and repeated verification requests often discourage people from maintaining active accounts or availing credit.

By digitalising and simplifying  KYC, SBI aims to make banking more accessible. A seamless KYC system would allow customers to update details through online or mobile platforms with minimal paperwork, using secure digital identity tools like Aadhaar and DigiLocker.

Bringing Credit to Every Corners
At the Global Fintech Fest, Setty pointed out that while India has achieved massive success in digital payments through UPI (Unified Payments Interface), the next big challenge is ensuring credit delivery  to the last mile.

He said SBI is exploring whether farmers can access credit digitally, especially through the Kisan Credit Card (KCC) scheme. This could allow small and marginal farmers to get instant loans directly through their phones, without visiting a bank branch.

Financial inclusion, Setty stressed, is not complete until credit reaches everyone from farmers to small street vendors.

Using AI to Support Responsible Lending
SBI is also looking at the use of artificial intelligence (AI) to identify customers who can safely receive pre-approved, small value loans. AI driven predictive models can assess data like transaction patterns, savings habits, and repayment history to make quick lending decisions.

However, Setty cautioned that while technology can simplify loan disbursal, the collection process remains a major challenge. Proper management and ethical use of AI are essential to ensure responsible lending and financial stability.

YONO: Expanding Accessibility Through Technology
Setty also announced that SBI’s popular digital platform, YONO (You Only Need One), will soon be available in 15 Indian languages. This will make the app more user friendly for people in different regions, especially those who are not fluent in English or Hindi.

With over nine crore registered users, YONO has become a symbol of SBI’s digital transformation. The expansion into regional languages reinforces the bank’s commitment to ensuring that no customer is left behind, regardless of income, education, or geography.

The Bigger Picture: India’s Digital Banking Future
SBI’s efforts come at a time when India’s financial sector is rapidly moving towards digital first solutions. With the government promoting initiatives like Digital India and Jan Dhan Yojana, banks are under growing pressure to provide simpler, more inclusive services.

By focusing on KYC simplification, AI based credit, and multilingual accessibility, SBI is setting the direction for the next phase of digital banking  one that combines technology, trust, and inclusivity.

The Future
The State Bank of India’s engagement with regulators and the government on KYC simplification is more than just a technical upgrade. It is part of a broader mission to ensure that every Indian, regardless of where they live, can access safe, simple, and meaningful banking services.

If successful, this move could redefine how people interact with banks in India  transforming the customer experience from paper heavy and time consuming to digital, secure, and effortless.