Reserve Bank of India (RBI) Governor Sanjay Malhotra has given a special advice to banks. In this, he has said that KYC (Know your customer) should avoid calling your customers repeatedly for documents. According to PTI news, the RBI Governor said that we need to ensure that once the customer submits the documents to the financial institution, we do not insist on regaining the same documents. The governor reminded of competition in the industry, saying that banks need to improve customer service, not only because of doing so is their duty, but also because it is in their own interest.
Repeated call described unavoidable inconvenience
According to the news, the governor clarified that it makes it possible for other people to reach them from the same database by submitting documents to a financial regulator. He called repeated requests as unavoidable inconvenience. He regretted that most banks and NBFCs have not allowed their branches or offices to reach information from the central database, due to which customers have to face unavoidable inconvenience. It can already be made smooth. This will be in the interest of everyone.
Bank customers are constantly complaining
This comment from the central bank has come at a time when bank customers are repeatedly complaining of inconvenience due to requests to recharge KYC again and again. Such complaints are constantly coming on social media platforms. Malhotra warned of banks against the wrongly category of customers’ complaints. He said that doing so is a severe regulatory violation. He said that in FY 2024, banks received 1 crore customer complaints and if complaints against other regulated institutions are included, this number will increase further. The governor said that 57 percent of these required arbitration or intervention by the RBI Lokpal. He said that you all will agree that this is a highly unsatisfactory situation and we need to pay immediate attention to it.
Banks need to improve customer service
He advised the leadership of banks that from managing directors to branch managers, time should be taken every week for grievance redressal. Malhotra said that this is necessary for all banks. He said that if such issues are left unresolved, they can weaken the confidence of consumers and spoil the entire ecosystem. He emphasized that complaints should not be seen as a nuisance. It is important to avoid repeated complaints, as they highlight systemic flaws.
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