HDFC bank has had a lot of cases where their very own managers have sold customers’ datas to scammers or committed fraud themselves. In fact , many banks have had similar cases.

 So, my point is that there should be clear boundaries set by RBI as to how much information banks can extract from the customers under the camouflage of KYC !

Customers information should be protected and accountability should be fixed on banks where customers’ accounts are compromised by their negligence and carelessness. Customers should be compensated fairly when banks either mishandle or misuse sensitive information of customers.

There is a strong need of reforms in the KYC/ Re-KYC and Extended KYC of customers at banks ! There is a strong need to clearly define as to how much information is the bank entitled to during KYC process and how frequently they can ask you for it.

Also, banks should be made to complete the Re-KYC at the earliest when all the documents are submitted . Right now banks like HDFC take 4-5 months to complete Re-KYC because there is lack of co-ordination between their teams and technical glitches in their online submission of Re-KYC documents through internet banking. HDFC harasses customers by repeatedly demanding the same documents through emails to various people at the very same bank as well as sending physical copies to the bank. Why can’t there be a single and simple process to submit documents for KYC ?