Moving forward, Reserve Bank of India (RBI) governor Shaktikanta Das it will not be necessary for customers to visit the bank in order to update the details of the bank.
No Need to Visit Bank for KYC
Except where there is a change of address, the governor said in an answer to a query during a press conference after sharing the monetary policy outcome, that customers can do re-KYC (know your customer).
As per the KYC norm guidelines of RBI, banks need to periodically update customer identification documents of their account holders.
The RBI rules say that in addition to the KYC carried out at the time of opening of an account, customers may be required to undergo re-KYC and submit the requisite documents.
The governor said that the banks can get customers re-KYCs without asking them to visit the branch.
During the press conference the RBI official said that if banks insists on visiting the branch for the purpose of re-KYC, then customers can raise a complaint with appropriate authorities
RBI & Repo Rate Hike
In order to keep up the fight with the inflation, the RBI’s monetary policy committee hiked the key repo rate by 35 basis points (bps) to 6.25 percent in its last meeting of 2022.
Used by monetary authorities to control inflation, Repo rate is the rate at which the central bank lends short-term funds to banks. One basis point is one-hundredth of a percentage point.
In the event of inflation, central banks increase repo rate as this acts as a disincentive for banks to borrow from the central bank. This ultimately reduces the money supply in the economy and thus helps in arresting inflation.
The central bank takes the contrary position in the event of a fall in inflationary pressures. Repo and reverse repo rates form a part of the liquidity adjustment facility.
The MPC has been on a rate hike course throughout the year, increasing policy rates by nearly two percentage points to fight inflation. Retail inflation has remained above the central bank’s comfort level for nearly the entire year.
