RBI New Update: RBI Governor said that with the help of centralized database, documents submitted once can be made available to all financial institutions. But most banks and NBFCs are not using this facility.
KYC For Bank Account: Many times banks call customers repeatedly for KYC of the account. Many times, information has also come to light about customers getting upset due to this. Regarding this, Reserve Bank (RBI) Governor Sanjay Malhotra advised banks not to call customers repeatedly for KYC documents. Calling it an ‘unnecessary inconvenience’, he said that if the 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
Customer complaints have been increasing for some time. Especially on social media, people are expressing displeasure over the trouble of updating KYC repeatedly. 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 benefit.’ He warned the banks not to categorize customer complaints wrongly, 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 more. In 57% of these cases, the RBI Ombudsman had to intervene, which makes it clear that there is a need to improve customer service.
There will be a negative impact on the banking system
The RBI Governor advised the banks to improve customer service. Malhotra said that from the top officials of the banks to the branch manager, everyone should take out some time every week to listen to the complaints of the customers. This should be ‘mandatory’ for all banks. He warned that if customer complaints are not addressed, it will have a negative impact on the banking system. He said that repeated complaints highlight the irregularities in the functioning of banks.
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