RBI proposes updates to tackle KYC issues

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

- PRESS TRUST OF INDIA

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 periodic update of KYC, the central bank said it has observed a large pendency in periodic update 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 Pradhan Mantri Jan Dhan Yojana (PMJDY) as well, it said.