KYC norms of banks: RBI has slapped all the banks on KYC issue and also for delayed KYC or incomplete KYC, account freeze or doormat. Saying that customers are victims of banks’ mistakes, RBI has directed banks to strictly and sympathetically follow the KYC guidelines and be prepared to face action for non-compliance.
It is important to maintain transparency in KYC
RBI Deputy Governor Swaminathan said in the meeting of directors of private banks that banks should follow KYC guidelines with honesty, transparency and compassion. Due to lack of KYC, banks close or freeze customers’ accounts. Due to which the money from government schemes does not reach the consumers. Apart from this, many other problems have to be faced. Bank accounts cannot be frozen. RBI can take action against banks for not following KYC rules.
Due to bad attitude of banks huge losses have been incurred
Banks show lax attitude in updating KYC of customers from time to time, which leads to delays. Furthermore, banks are providing inadequate information to customers on KYC issue, which has led to loss of service. RBI has received complaints that many banks are doing the KYC process in the home branch only.
Work to increase customer confidence.
Swaminathan further said that banks should work to increase customer confidence. With the help of technology and innovation, banks ensure to provide easy, accessible and fast services to the customers. Follow KYC guidelines accurately and sympathetically.
