RBI Governor Sanjay Malhotra warns Banks to address Customer ‘s complains seriously & not to ask KYC documents repeatedly as Crores of Complains are pilling at RBI regarding complains and Banks are unnecessary blocking thousands of lower & Middle class Saving Accounts in name of KYC,Will Banks listen to RBI governor as in past RBI also warned but to earn money and pass it to big business cronies as loan Banks are deaf ear to common persons bypassing RBI Orders

Lacs of Bank Saving Bank accounts of lower and middle class have been made dormanant and inoperable in name of KYC documents by few Government and many private Banks and this money where lakh crores rupees are deposited where hardly 3% interest is provided ,is utilised by this Bank to provide loan at the rate of 14-18% where middle class and lower middle class tries to pay back but many top business and industralists donot pay it all and these accounts become NPA and these companies ultimately go to NCLT or their owners move to foreign destinations completing Government to writeoff these loans (According to a media report,loan to a tune of 14 Lakh crores were waived off by Government to clean Account Book of Bank). RBI Governor Mr Sanjay Malhotra was speaking at the annual conference of RBI Ombudsmen. The theme of the Conference was “Transforming Grievance Redress: The AI Advantage”.The RBI governor insisted that the banking sector needs to ensure that once a customer has submitted documents to a financial institution, they do not have to obtain the same documents again.He rued that most banks and NBFCs have not enabled their branches or offices to access information from the central database due to which customers have to face the avoidable inconvenience.
Grieved by crores of customers complains pilling on social media platforms and heavy work on RBI Ombudsmans RBI Governor warned banks against misclassifying customer complaints to suppress its numbers, saying doing so amounts to a “gross regulatory violation”. He said in FY24, banks received 1 crore customer complaints and the number will grow higher if one were to include complaints against other regulated entities. He further added that 57 per cent of these required mediation or intervention by RBI ombudsmen. “All of you will agree that this is a highly unsatisfactory situation and needs our urgent attention,” he said.The RBI governor also advised leadership at banks, starting with the managing directors down to the branch managers, to have to keep time off every week for complaint redressal. This is a “must” for all the banks, he said, adding that CEOs across the world find time in their schedules for this.
These warnings are too much for Banks but Banks hardly care for it until RBI fines Bank or take strict action against CMD or higher officials as RBI time to time pass orders to Bank to be customer friendly but here Governor himself has warned as Banks have digested thousand crores of common persons in name of KYC documents which must be released and every branch of every bank should try to resolve customer complains at their level as soon as possible.