Reserve Bank of India: To improve customer service, the Reserve Bank has put forward its point on the solution of problems related to KYC update and inoperative accounts.
Reserve Bank of India: The Reserve Bank of India (RBI) on Friday proposed to change the rules of ‘Know Your Customer (KYC)’. Its purpose is to prevent money laundering. This will make it easier for millions of bank customers and beneficiaries of government schemes to update KYC. In its draft circular, the Reserve Bank has simplified the process of updating KYC from time to time, so that the challenges faced in updating KYC from time to time can be resolved.
Many cases of KYC update pending
In its draft circular released on Friday, the central bank said that many cases of updating KYC from time to time have been seen pending. These include accounts opened for Direct Benefit Transfer (DBT), Electronic Benefit Transfer (EBT). Customers are also facing problems in the accounts opened under the Pradhan Mantri Jan Dhan Yojana. There is a problem in updating KYC. The Reserve Bank is receiving complaints about the challenges faced by customers in updating KYC from time to time.
This is now mandatory for banks
The Reserve Bank has directed all bank customers to update their KYC from time to time. Now it has become mandatory for banks to give advance notice to their customers at least three times about KYC update from time to time. All stakeholders can give their suggestions on this proposal of the central bank till June 6.
RBI says that banks should provide the facility of mandatory KYC update for dormant accounts or unclaimed amount in all their branches. Apart from this, if the bank has the facility of Video Consumer Identification Process (V-CIP), then provide this facility to the account holder on his request. The Reserve Bank has also said that the help of authorized business correspondents can also be taken to activate inactive bank accounts.
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