Reserve Bank of India: RBI Governor said that with the help of centralized database, documents once submitted can be made available to all financial institutions. But most of the banks and NBFCs are not using this facility.
KYC For Bank Account: Many times banks call customers repeatedly for KYC of their accounts. Many times, it has been reported that customers are troubled by this. Regarding this, Reserve Bank (RBI) Governor Sanjay Malhotra advised banks not to call customers repeatedly for KYC documents. He called it an ‘unnecessary inconvenience’ and said that if a customer has once submitted the documents to a financial institution, then there should be no need to ask for them again.
Customers are troubled by repeated demand for documents
RBI Governor Malhotra said in the annual meeting of RBI Ombudsman that customers are troubled by repeated demand for KYC documents. He said that with the help of a central database, documents submitted once can be available to all financial institutions. But most banks and NBFCs are not yet using this facility properly. He asked the banks to take quick steps in this direction.
People are expressing displeasure on social media
For some time now, customer complaints have been increasing. Especially on social media, people are expressing displeasure over the trouble of repeatedly updating KYC. This statement of the RBI Governor has come at a time when dissatisfaction is increasing among the customers regarding this process of banks. He expressed regret and said that most banks and NBFCs have not provided their branches or offices with the facility to get information from the central database. Due to this, customers have to face inconvenience.
RBI Ombudsman had to intervene in 57% of the complaints
Malhotra said, ‘This can be made easier soon. It will be in everyone’s interest.’ He warned banks not to miscategorize customer complaints so that their number appears less. In the financial year 2023-24, banks received about one crore complaints. If other financial institutions are included, this number can be even higher. In 57% of these cases, RBI Ombudsman had to intervene, which makes it clear that there is a need to improve customer service.
