The Reserve Bank of India (RBI) has asked banks to follow know your customer (KYC) guidelines with both accuracy and empathy
The RBI deputy governor also expressed concern over how customer grievance systems, including internal ombudsmen, are often treated as formalities
the deputy governor encouraged banks to embrace technology, drive digital transformation, and ensure ethical leadership while fulfilling traditional governance duties
The Reserve Bank of India (RBI) has asked banks to follow know your customer (KYC) guidelines with both accuracy and empathy, failing which regulatory actions will be taken against them.
As per PTI, the central bank’s deputy governor Swaminathan J has made this statement while addressing a Conference of Directors of Private Sector Banks in Mumbai.
He also expressed concern over how customer grievance systems, including internal ombudsmen, are often treated as formalities.
Swaminathan called for these mechanisms to be more effective and impartial, ensuring issues are resolved promptly.
He also highlighted the importance of transparency and fairness, stating that customer trust in the banking system is a key priority for the RBI.
“As I have said before, this is an area where we are significantly focussing to enhance the customers’ trust in the system and will not hesitate to act in case a supervisory intervention is considered necessary,” said Swaminathan.
Additionally, the deputy governor encouraged banks to embrace technology, drive digital transformation, and ensure ethical leadership while fulfilling traditional governance duties like risk management and financial oversight.
(The story will be updated soon)
