KYC: If you are also troubled by the repeated calls from banks for KYC (Know Your Customer) update, then there is a news of relief. Reserve Bank of India (RBI) Governor Sanjay Malhotra has instructed the banks to avoid calling their customers repeatedly for KYC update.
Speaking at the annual conference of RBI ombudsmen, Governor Malhotra said that if a customer has once submitted his KYC documents to a financial institution, he should not be harassed to submit them again and again. He emphasized that banking institutions should connect their branches and offices to the central database so that customers do not have to face additional trouble.
Solution will be available from central database
The RBI governor expressed concern that most banks and non-banking financial companies (NBFCs) are lagging behind in connecting their offices to the central database, forcing customers to submit documents again and again. He said that this process should be made easier so that customers do not have to face repeated phone calls.
It is worth noting that if a customer does not update his KYC documents on time, the bank can ban transactions in his account or temporarily suspend the account. In serious cases, the account can also be closed, but before taking any such step, the bank is required to inform the customer. With this instruction of RBI, customers are expected to get relief from the inconvenience of repeated KYC updates, as well as the banking process will also be made more smooth and customer friendly.
