A committee appointed by the Reserve Bank of India (RBI) has proposed certain measures to be taken by banks for the benefit of their customers.
The committee has recommended that banks should provide online settlement of claims in the event of the account holder’s demise, ensuring a convenient process for the heirs. Additionally, the committee has suggested allowing flexibility in the submission of life certificates on behalf of pensioners, aiming to make it easier for them.
KYC Non-Compliance Can Lead to Account Suspension
The committee appointed by the Reserve Bank of India (RBI) to assess customer service standards in RBI-regulated financial institutions has highlighted the importance of keeping Know Your Customer (KYC) details updated regularly. Failure to do so can cause disruptions in account operations, potentially resulting in account suspension. However, there are steps you can take to avoid this situation.
The committee’s recently released report emphasizes the need for financial institutions to establish a specific timeframe for returning property documents to borrowers after the closure of a loan account. Failure to adhere to this timeframe should result in fines for the lender.
In the unfortunate event of loss or damage to property documents, banks and financial institutions should assist customers by facilitating certified registered copies of the documents at their own expense. Additionally, adequate compensation should be provided to affected customers, as recommended by the report of the RBI’s deputy governor.
The committee, chaired by former RBI deputy governor BP Kanungo, was formed in May of the previous year. After thorough evaluation of complaints filed through the Internal Grievance Redressal (IGR) system of financial institutions, the committee has put forth these recommendations.
Suggestions for Pensioners
Furthermore, the committee has provided some recommendations specifically aimed at benefiting pensioners. These include allowing pensioners to submit their life certificates at any branch of their bank and enabling them to choose any month for depositing their life certificates to avoid rush and inconvenience.
