The know your customer (KYC) regulations and norms for banks require simplification for the benefit of customers but not at the cost of compromising banking transactions, RBI Executive Director B Mohapatra said here on Friday.
Taking part in a customers and depositors meet on KYC norms for banks, Mohapatra said the regulations were essential to prevent money laundering and use of money for terrorist activities. But the norms could be simplified to make it easier for the customers to open account and comply with the requisites easily.
The depositors raised complaints of facing problems while providing proof of identity and residence or address to the banks for opening accounts as the banks are not accepting documents in many cases.
Most of the problems can be resolved by the banks if they take small and easy steps for verification of the customers. The banks should be proactive in the direction, Mohapatra said.
Over 200 customers were present at the meet that was also attended by CGM, SBI, Bhubaneswar Praveen Gupta and RBI regional Director V Ramachandra Rao.