KYC Rules Lock Tribal Funds in Jharkhand

Jairam Ramesh, Congress general secretary, highlights how thousands of tribal people in Jharkhand are struggling to access bank accounts due to rigid KYC norms. This impacts their earnings from government initiatives. Ramesh urges the RBI to reconsider its policies to enable easier access for these communities.

On Monday, Congress General Secretary Jairam Ramesh claimed that thousands of tribal residents in Jharkhand are blocked from accessing their own bank funds due to stringent Know Your Customer (KYC) requirements. He urged the Reserve Bank of India (RBI) to reevaluate the process to aid these communities.

Ramesh, through a social media post, highlighted the plight of tribal people in India's poorest districts. Many are unable to withdraw money earned through government programs like MGNREGA due to KYC-related hurdles.

He referred to a survey by NREGA Sahayta Kendras in Jharkhand's Latehar and Lohardaga districts, revealing that 60 percent of surveyed households had at least one frozen bank account due to minor inconsistencies in documents. Ramesh stressed that policy coordination is crucial to alleviate the burden on affected communities.

(With inputs from agencies.)