RBI Proposes to Simplify KYC Norms to Make Banking Easy for Customers

The Reserve Bank of India has announced a few measures including simplifying KYC (know Your Customer) norms, to make banking easier for the common person. The banking sector regulator in its report says, it will introduce a pilot project using Aadhar data to authenticate banking transactions at all merchant terminals and ATMs. This project will be launched in New Delhi on November 15.

The additional batch of clearing at 0800 hrs will be introduced in the NEFT system from November 19. Also, the ‘the cheque truncation’ system which is used for paper clearing will have a national rollout from December next year.

According to the RBI report, some credit institutions are not furnishing accurate and timely credit data to the Credit bureaus and also not relying as much credit information as available at the time of taking credit decisions. It said that, public sector banks which account for 90% of currency chests are very slow in reporting such incidents, while private sector banks which account for only 10% of currency chests account for 90% of reporting.

Source: The Economic Times