Hey, banking folks! Have you ever been annoyed by endless calls asking for the same KYC papers you swear you’ve already submitted? Well, RBI Governor Sanjay Malhotra had enough of it, too. He spoke at the annual RBI Ombudsmen Conference—rocking the theme “Transforming Grievance Redress: The AI Advantage”—and put his foot down. He told banks to quit pestering customers for documents they’ve already handed over, calling it an “avoidable inconvenience.” Let’s break it down, accurately and efficiently, straight from his chat in March 2025.
One and Done: KYC Shouldn’t Be a Repeat Game
Sanjay Malhotra’s big point? If you’ve given your KYC docs to any financial outfit—bank, NBFC, whatever—everyone should be able to tap into a shared database and grab it from there. No more “submit it again” nonsense. But here’s the kicker: tons of banks and branches haven’t yet hooked up to this central system. Result? You’re stuck digging out your Aadhaar or PAN for the umpteenth time. “This has to stop,” he said, pushing for a smoother customer vibe so folks don’t need to complain.
Complaints Are Piling Up—And That’s a Problem
Speaking of complaints, Malhotra revealed some statistics: 1 crore customer complaints were filed against banks in FY24. That figure rises when additional financial participants are included. Worse? 57% of respondents said they needed the RBI ombudsmen to intervene and resolve the issue. “That’s not okay,” he told the crowd. “We’ve got to fix this fast.” And he’s not playing around—hiding or fudging complaint numbers? That’s a “gross regulatory violation,” he warned. No sweeping stuff under the rug!
Step Up, Bank Bosses
Malhotra’s got a plan for the big shots too. He’s calling on everyone from CEOs to branch managers to carve out weekly time for tackling complaints. “This isn’t optional—it’s a must,” he insisted. He pointed out how top executives worldwide make space for this, and Indian banks should, too. It’s all about catching issues early, fixing them at source, and keeping customers from escalating things to the Reserve Bank of India‘s doorstep.
Why It Hits Home
This is great. Hasn’t anyone ever vented on X about KYC issues, and who hasn’t? Banks bugging you for things they should already have is a real pain point that Malhotra is bringing to light. He supports a system that lets your information flow naturally and eliminates the need for repetitions. You don’t need to worry about this on social media because he also supports strengthening banks’ internal complaint-handling procedures.
The Big Picture
Malhotra wants banks to step up their game and rely on life-improving technology like artificial intelligence (hello, conference theme!). The objective is fewer calls, fewer per work, and increased trust. It’s time for your bank to Perhaps refer them to this speech to get Sanjay’s support for a new KYC. Tell them to calm down and gather themselves; Sanjay has your back!