Fact Check: Jan Dhan Accounts Will Not Be Closed If KYC Is Not Done by September 30

Although accounts with incomplete KYC might face service restrictions, they won't be permanently closed but may become inactive until KYC is completed. The drive aims to verify account holder details and ensure continued access to government schemes.

Bengaluru: The Press Information Bureau (PIB) has debunked a widely circulating claim that Jan Dhan bank accounts will be closed if account holders fail to complete Know Your Customer (KYC) formalities by September 30, 2025. The claim appeared in a recent report by the Hindustan newspaper’s Bihar edition, which stated that around 84 lakh Jan Dhan account holders in the state risk losing access to their accounts if KYC is not updated by the deadline. However, PIB has clarified that while KYC updates are indeed encouraged and required under a financial inclusion drive led by the Government of India, non-compliance will not lead to account closures. The news report claimed that around 84 lakh beneficiaries of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in Bihar must complete KYC (Know Your Customer) verification of their bank accounts by September 30. Failing to do so may result in closure of their bank accounts, it added.

While it is true that banks have been instructed to update KYC details of Jan Dhan account holders as part of a financial inclusion campaign, the claim that accounts will be closed if KYC is not completed is misleading. According to officials and financial guidelines,  accounts with missing or outdated KYC may face restrictions on certain services, such as cash withdrawals, transfers, or new enrollments in linked schemes. However, the accounts will not be permanently closed. Instead, they may be put on hold or marked as inactive until the required KYC is completed.

What Is the KYC Requirement About?

Under the Financial Inclusion Saturation Campaign, running from July 1 to September 30, banks are reaching out to Jan Dhan account holders to:

• Verify their identity and address using valid documents (like Aadhaar, Voter ID, DL, etc.)
• Ensure that account holders can continue accessing PM Jeevan Jyoti Bima Yojana, PM Suraksha Bima Yojana, and the Atal Pension Yojana
• This is a compliance exercise and not a threat of account termination.