KYC for Bank Account: If you receive subsidy or pension money in your bank account, then the bank will not be able to freeze your account even if you do not have KYC. The Reserve Bank has strongly reprimanded private banks in this matter. RBI has said that the accounts of such people should not be frozen. Also, the service for customers in banks should be good.
Bank Account: The Reserve Bank has reprimanded the banks which are freezing the accounts for not having KYC. Actually, the banks are freezing the accounts of those people who receive Direct Benefit Transfer (DBT) funds from the government in their accounts for not having KYC. This includes subsidy, pension, money from a special scheme etc. Apart from this, the Reserve Bank has also found these banks guilty of delaying the KYC update. Due to this also, the accounts of many people have been frozen.
Advised to follow the instructions
According to the Times of India, while addressing the directors of private sector banks, RBI Deputy Governor Swaminathan J said that banks should ensure that KYC guidelines are followed with both accuracy and empathy.
He said that RBI had earlier also given instructions to the banks. In these, it was said that banks should not freeze the accounts in which money of government schemes is transferred due to lack of KYC.
Many types of problems came to the fore
Swaminathan said that the Reserve Bank has come to know about many problems related to customers. These are the main ones:
- Too much delay at the bank level in updating the KYC of customers from time to time.
- Lack of proactive approach in assisting customers and obtaining necessary documents.
- Not enough staff to complete many important tasks. Due to this, refusing to do any work to the customer.
- Sending the customer to the home branch for every work.
- Delay in updating the information in the system even after providing all the necessary documents from the customer.
Customers are not able to get their money
Swaminathan said that due to the way the guidelines are being implemented, many accounts are getting frozen. Due to this, customers are not able to get their money. He said that the boards should ensure that there is no deficiency in the service of banks. Especially for senior citizens etc.
