The Reserve Bank of India i.e. RBI has instructed banks to immediately reduce inactive or frozen bank accounts. It has also been said that their numbers should also be reported on quarterly basis. The central bank has asked the banks to take necessary steps. Expressing concern over the increasing amount of money lying in such accounts, the RBI said its supervisory inspections have revealed several problems due to which accounts are becoming inactive or frozen, PTI reported.
Advice to take immediate necessary steps
According to the news, in the notification issued to the heads of all the banks, it has been said that the banks should take immediate necessary steps to reduce the number of inactive/frozen accounts and make the process of activating such accounts easy and hassle-free. It is recommended. It is also suggested that banks may consider enabling seamless update of KYC (Know Your Customer) through mobile/internet banking, non-home branches and video customer identification process.
asked to adopt a sympathetic approach
In the notification issued by RBI, it has been said that such cases have been observed where the accounts of disadvantaged beneficiaries of state-run cash transfer schemes have been frozen due to other reasons such as pending update/periodic update of KYC, whereas the accounts of such beneficiaries have been frozen by the scheme. Segregation is necessary to facilitate uninterrupted credit of funds. In the advisory, RBI has asked banks to adopt a sympathetic approach in such cases.
Customers are facing this kind of problem
Reportedly, there have been cases where customers faced inconvenience while contacting bank branches to activate dormant accounts, including due to inadvertent errors in customer details such as mismatch in name, RBI said. To be etc. are included. It was also observed that some banks have a large number of pending accounts which require updation/periodic update of KYC, as a result of which such accounts are frozen for further transactions as per the internal policies of the bank. Is.
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