Reserve Bank of India (RBI) Deputy Governor Swaminathan J has strictly instructed the banks to follow the KYC (Know Your Customer) rules accurately. He clearly said that if the banks do not follow these guidelines properly, then strict regulatory action will be taken against them.

Do not treat customer complaints as a formality.

The Deputy Governor expressed concern that many banks take their internal Ombudsman System as a formal process. He said that this mechanism should not be limited to paper only, but should work to solve customer problems fairly and quickly. Banks should make it strong and effective so that the customer can get justice in the true sense.

Respecting your customers is the most important thing

Swaminathan advised banks to work on customer-centric banking. Every customer, irrespective of his income, age, or background, should feel important and respected. The bank's policies, processes, and services should be transparent and fair at every level.

'Empathy' and 'accuracy' required in KYC rules

The Deputy Governor specifically urged the Board members of banks and Chairpersons of Customer Service Committees to ensure that KYC norms are followed not only technically but also with empathy and sensitivity.

Emphasis on digital and ethical transformation

He also said that apart from primary responsibilities like financial monitoring and risk management, banks should move towards adopting digital technology and establishing ethical leadership. In today's time, improving customer experience and prioritizing their problems has become most important for the banking sector.

Strict message from RBI

The Deputy Governor made it clear that any kind of negligence regarding customer service and transparency will not be tolerated. If the banks do not resolve these issues on time, then RBI will not shy away from taking regulatory action.

The goal is to increase customer confidence

This tough stance of RBI indicates that customer satisfaction and transparency are no longer just options but are mandatory conditions of banking. Banks will now have to improve their policies and services to ensure that every customer feels safe and satisfied.