The banks have frozen the accounts of customers who have not completed their KYC, resulting in customers being unable to perform any bank transactions and facing a shortage of money. As a result, customers are flocking to the banks to complete their KYC. Moreover, some bank customers have alleged that their KYC was not processed by the respective banks, despite providing the necessary documents. They are facing severe inconvenience due to the apathetic attitude of the bank employees. One customer, Rahul Pardeshi, said that he had submitted the required documents, mobile number, and other details three times, but the bank had not updated the information. Consequently, he has had to visit the bank frequently.
Customers are crowding in various branches of nationalized banks from Monday to update their KYC information. Moreover, they are unable to complete any transactions as their accounts have been frozen by the bank and can only be reactivated after the information is updated. The banks are becoming crowded, and customers have to stand outside the branches due to the lack of waiting space inside.
The Reserve Bank of India (RBI) has issued directives to the banks not to freeze the accounts of customers who are directly receiving benefits from government schemes through their accounts, even if the KYC has not been completed. RBI sources recently stated that it was observed that the KYC of several account holders had not been done, but the responsibility lies with the banks.
As the banks are not following the RBI’s directives scrupulously, customers are facing inconvenience, they alleged.
