RBI Tightens the Reins: KYC Compliance with Precision and Empathy

RBI Deputy Governor Swaminathan J emphasized the importance of adhering to KYC guidelines with precision and empathy at a conference with private bank directors. He called for a genuine customer grievance mechanism and highlighted the significance of customer-centric governance in banking to enhance trust and transparency.

In a compelling address to private sector bank directors, RBI Deputy Governor Swaminathan J stressed the critical importance of adhering to Know Your Customer (KYC) guidelines with both precision and genuine empathy. Failure to do so will result in stern regulatory action by the central bank.

Swaminathan expressed concerns over customer grievance mechanisms, often seen as formalities rather than functional tools, calling for these systems to be both effective and impartial. Bank boards were urged to foster customer-centric governance, ensuring customers feel valued and respected.

Highlighting ethical leadership, Swaminathan underscored the necessity for banks to prioritize technological advancements and customer-centric innovations, ensuring transparency in treating customers fairly, thus reinforcing trust in the banking system.

(With inputs from agencies.)