The Reserve Bank of India has released new guidelines for all banks as per which, they are required to show the online settlements of claims executed after the death of the account holder’s offspring. The authority also stated to provide flexibility in submitting the life certificate to the pensioners.
New Guidelines to Banks from RBI
The committee’s report, which was commissioned to review customer service standards in financial institutions regulated by the RBI, has highlighted that failure to update Know Your Customer (KYC) details periodically can disrupt account operations without leading to a ban.
According to the report released on Monday, the committee recommended implementing a time limit for returning property documents to borrowers once their loan accounts are closed. Lenders should face fines for failing to comply with this requirement.
In cases where property documents are lost, banks and financial institutions should not only assist customers in obtaining certified registered copies of the documents at their own expense but also provide adequate compensation, as outlined in the report by the RBI deputy governor.
The Reserve Bank established this committee in May of the previous year, with BP Kanungo, former deputy governor of RBI, serving as its chairman. After reviewing complaints lodged through the Internal Grievance Redressal (IGR) system of financial institutions, the committee has presented its recommendations.
Suggestions for pensioners
The committee has also put forward suggestions to benefit pensioners. According to these recommendations, pensioners should have the ability to submit their life certificates at any branch of their bank. Furthermore, they should be permitted to deposit life certificates in any month of their choosing to avoid overcrowding.
The committee’s report also emphasized the need for enhanced customer service standards in RBI-regulated financial institutions. It is recommended that banks and financial institutions prioritize timely updation of Know Your Customer (KYC) information to ensure smooth account operations. By keeping KYC details up to date, financial institutions can mitigate risks associated with fraudulent activities and maintain the integrity of customer accounts.
Moreover, the report addressed the issue of property document management. It proposed that a specific timeframe should be established for returning property documents to borrowers after the closure of their loan accounts. This measure aims to provide borrowers with clarity and certainty regarding the return of their important documents, facilitating smoother transitions and reducing unnecessary delays.
In cases where property documents are lost, the committee suggested that banks and financial institutions should take responsibility for assisting customers in obtaining certified registered copies of the documents. This assistance should be provided at the institution’s own cost. Additionally, the report recommended that customers affected by such situations should be adequately compensated for any inconvenience or losses incurred.
The committee’s recommendations also extended to pensioners. It suggested that pensioners should have the flexibility to submit their life certificates at any branch of their respective banks. This change would simplify the process for pensioners, allowing them to choose a convenient branch location. Furthermore, the report proposed that pensioners should be permitted to deposit their life certificates in any month of their choice, thus avoiding the rush that typically occurs during specific months.
The report, authored by the committee under the chairmanship of BP Kanungo, former deputy governor of RBI, was commissioned to ensure the improvement of customer service standards in RBI-regulated financial institutions. By addressing key issues such as KYC updation, property document management, and pensioner benefits, the report aims to enhance the overall customer experience and strengthen the relationship between financial institutions and their customers