RBI Guv Shaktikanta Das Advises Banks To Take Steps For KYC Issues, Direct Benefit Transfer

RBI governor Shaktikanta Das in his speech after the monetary policy meet advised banks and financial institutions to address issues of unclaimed deposits and frozen accounts due to pendency of KYC update.

"Banks are once again advised to take necessary steps urgently to bring down number of such accounts to make the process hassle free," said Das.

In addition, he said banks have been advised to segregate accounts of beneficiaries in various central and state government schemes through direct benefit transfer and facilitate uninterrupted credit.

The governor has also advised banks to do it without inconveniencing such vulnerable segment of customers and emphasised the need of seamless and smooth flow of the amount. So that, it facilitates individuals to withdraw money to meet requirements. The progress made by banks in this regard will be monitored by RBI, Das said.

The Monetary Policy Committee has decided to maintain the repo rate at 6.5% for the eleventh consecutive time, with a 4:2 majority, announced Das. The Cash Reserve Ratio was cut by the Reserve Bank of India by 50 basis points to 4% to revive the economic growth by improving liquidity.

"Financial parameters of banks and NBFCs continue to be strong," said Das adding that incoming data suggests that the gap between growth of credit and deposit of scheduled commercial banks has narrowed with deposits keeping pace with long growth.

On financial sector, "I can say with confidence that health of sector today is perhaps at one of its best in a long time," he said adding that RBI supervision of financial sector and its entities continues to be vigilant and proactive.

Only in extreme cases, where sufficient corrective action is not visible the RBI resorts to imposition of business restrictions as last resort in the interest of consumer and financial stability, he added.