RBI Proposes To Use Biz Correspondent Network To Tackle KYC, Inoperative Account Issues

Faced with growing complaints on know-your-customer (KYC)-related matters, the Reserve Bank on Friday said it is contemplating to allow banks to take help of the vast network of business correspondents.

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The central bank further said it is also mulling to allow authorised business correspondents of banks to help activate inoperative accounts.

In a draft circular on updation/periodic updation of KYC released on Friday, the central bank said it has observed a large pendency in periodic updation of KYC, including in the accounts opened for credit of Direct Benefit Transfer (DBT), Electronic Benefit Transfer (EBT) under government schemes to facilitate credit of DBTs.

It has also been observed that the troubles are being faced by the accounts opened under the Prdhan Mantri Jan Dhan Yojana as well, it said.