My View on "KYC norms need a relook: RBI chief":
Perhaps many are unaware that the SBI no longer holds the AADHAR in the list of eligible Ids for opening a bank account. They are now asking their prospective clients to get the ration card, telephone bill, electricity bill etc. In fact, a couple of years in a discussion on KYC, I narrated the experience of a retired CGM of RBI with the SBI when he could not find acceptance of the IDs for his wife as a joint account holder! It was scripted in an article in the HBL both by me and the victim - Dr TV Gopalakrishnan. Bank branches have their own views of looking at KYC with due endorsement from their bosses.
- Yerram Raju
When the ex-Governor of RBI himself has faced difficulties in opening a bank account, less said is better about the blind application of the guidelines on KYC norms for opening of bank accounts and carrying out of financial transactions !
- Rajappan Nair
2 comments:
KYC has become very handy for banks to Keep YOUR Customers Away. They demand some document which the customer does not have and drive them away from branches. Bank Employees serve themselves. Before going to the bank Know Your Bank first and Know your Compulsions to have an account opened. Employees will ensure that You Are Not a Wanted Customer and they have KYC norms to back their wish. God Save Indian Banks and Financial Inclusion which is never going to be there in the present two or three generations and future generations also as long as Bank emplyees and authorities do not really have a mind set to view customers as a Business Opportunity. If it is absolutely essentail then only go to the Bank. NRI customers are the worst lot as they cannot have regular contacts as the phones are not meant afor any Communication and emails are seldom read and answered.They are lucky in the sense that they do not come in personal Contacts with the employees to incur their displeasure and wrath.
First thing to do is delink KYC from Money laundering. As former commercial banker i know the moment a branch mgr gets a circular combining these two unconnected issues he or she will become rigid in handling a potential customer.
Change the nomenclature to make it appeal a simple one. may be it can b christened Client Introduction Form.
Allow BM and staff or a customer as eligible introducer .
Things r likely to change.
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