Reserve Bank of India (RBI) Governor Sanjay Malhotra has given special advice to banks. In this, he has said that avoid repeated calls to your customers for KYC (Know your customer) documents. According to PTI news, the RBI Governor said that we need to ensure that once customers submit documents in the financial institution, we do not insist on taking the same documents again. The governor reminded of competition in the industry, saying that banks need to improve customer service, not only because it is their duty, but also in their own interest.
Frequent calling is considered an unavoidable discomfort
According to the report, the governor said that by submitting documents to an institution under the supervision of the financial regulator, it makes it possible for other people to reach them from the same database. He described repeated requests as unavoidable inconvenience. He regretted that most banks and NBFCs do not allow their branches or offices to access information from the central database, due to which customers face unavoidable inconvenience. This facility can be made available in advance. This will be in the interest of everyone.
Bank customers are constantly complaining
The central bank’s comment has come at a time when bank customers are repeatedly complaining of inconvenience due to request to re-introduce KYC. Such complaints are constantly coming on social media platforms. Malhotra warned banks against wrongly classifying customers’ complaints. He said that doing so is a severe regulatory violation. He said that in the financial year 2024, banks will receive 1 crore customer complaints and if complaints against other regulatory bodies are included, this number will increase further. The governor said that 57 percent of these cases require arbitration or intervention by RBI Lokpal. He said that all of you will agree that this is a very unsatisfactory situation and there is a need to pay immediate attention.
