(BS)
The Reserve Bank of India (RBI) has directed banks to take necessary steps to urgently reduce the number of inoperative or frozen accounts and make the activation process for such accounts smoother and hassle-free. This includes enabling seamless Know Your Customer (KYC) updates through mobile or internet banking, non-home branches, video customer identification processes, and more.
For accounts of beneficiaries of various central or state government schemes, the RBI has instructed banks to adopt an “empathetic view,” as many such accounts have been frozen due to factors like pending or periodic KYC updates. Additionally, the RBI has directed banks to organise special campaigns to facilitate the activation of inoperative or frozen accounts and support customers with Aadhaar updates through branches offering Aadhaar-related services. “Instructions have been issued separately to state-level bankers’ committees (SLBCs) to proactively monitor the situation in their respective jurisdictions with a view to minimising customer inconvenience,” the RBI said.
